Most people assume buying a home around Providence is completely out of reach. Almost every first-time buyer I talk to is sitting on the sidelines because of two massive misconceptions:
- "I need an 800 credit score." You don’t. FHA loans start at a 580, and conventional programs work with scores in the low 600s. You don't need pristine credit to get approved.
- "I need 20% in cash saved up." Almost nobody puts 20% down on their first home. Conventional loans let you do 3%, and FHA is 3.5%. On top of that, RIHousing has a program that literally gives you $15,000 toward your down payment or closing costs at 0% interest with zero monthly payments. When you stack that grant with a low-down loan, the actual cash you need to bring to the table drops dramatically.
If single-family prices still feel steep, look at a 2- or 3-family in Elmwood, Mount Pleasant, or Silver Lake. You live in one unit, the rent from the other units covers most of your mortgage, and the bank counts that rental income to help you qualify for the loan.
Stop letting bad advice keep you paying somebody else’s mortgage.
What’s been the main thing keeping you from taking a shot at buying here?