The Freddie Mac Home Possible loan program in the state of Rhode Island is designed for qualified low- and moderate-income borrowers. Through Home Possible loans, borrowers can qualify for a conforming conventional mortgage with a down payment as low as 3% of the property purchase price and no minimum borrower financial contribution. This program also can be used for a “no cash out” refinance of an existing mortgage.
Home Possible Loan Features
- Down payment as low as 3% down with no minimum borrower contribution
- Ability to include rental income from boarders and other units in multi-unit properties to qualify for a mortgage
- Potentially reduced interest rate for borrowers with low incomes or for properties in under-served areas
- No upfront RHA mortgage insurance premium (MIP) and potentially lower ongoing private mortgage insurance (PMI)
- Borrower is not required to maintain reserves if buying a single-family property
- Income flexibility for Rhode Island homeowners
Eligibility and Income Limits
Home Possible mortgages are available to both first-time home buyers and borrowers who have previously owned a home, but the borrower who owns and occupies the property cannot own any other residential properties. Additionally, borrowers seeking to refinance (seeking lower mortgage rates) an existing property may also be eligible for a Home Possible loan.
Home Possible income limits vary based on the location of the property. Contact Home Point Financial for details on Rhode Island income limits and property eligibility.
Interest Rates for Rhode Island Home Possible Loans
The interest rate on Home Possible mortgages depends on many factors, including the borrower’s credit score and loan-to-value (LTV) ratio. As with any loan, it’s best to contact a mortgage professional to fully understand interest rates and costs related to a new home loan.
Apply for a Home Possible Loan in Rhode Island
Our mortgage professionals are here to help with any questions that you may have about Home Possible or any other type of home mortgage program. Contact Home Point Financial today to learn more.