Eligibility
- Total purchase cost and rehabilitation costs must not exceed FHA Maximum Loan Limits.
- You will be required to have a construction contract with a state-licensed and insured general contractor.
Not sure what kinds of renovations our loans cover?
Here are just a few: Electrical, HVAC systems, new appliances, roofs, health and safety standards, sewer hookup, well and septic systems, building of an Accessory Dwelling Unit (ADUs).
NOTE: Any repairs that are structural in nature, or more than $75,000, will be considered under the Standard 203(k) Rehabilitation program.
Additional Considerations
- 203(k) applicants are required to complete a FHA 203(k) Homebuyer Education class prior to closing. The class is offered online for a $15 fee.
- After closing, the funds for home repairs will be held by RIHousing in an escrow account. RIHousing will disburse payments to the contractor and manage a contingency reserve of up to 20% of the rehabilitation costs. Unused funds will be applied to the principal balance of your loan.
- Rhode Island now allows for the building of an Accessory Dwelling Unit (ADU) on one’s property. Learn more about ADUs and how you can finance it with us.
Ready to apply?
Homeowners: Refinance Options Available
We offer FHA 203(k) Rehab refinance mortgage programs to Rhode Island homeowners to make improvements on their house. Talk to your lender today about refinancing with RIHousing. Click here to see all RIHousing refinancing options.
