2024 FHA Loan Limits in Rhode Island
FHA loans — those backed by the Federal Housing Administration, which operates under the U.S. Department of Housing and Urban Development (HUD) — offer accessible mortgages to a wide range of people who might struggle to get approved for other loans.
However, FHA loans come with maximum limits that cap how much you can borrow. Those limits vary depending on the property location — whether in a low-cost or high-cost area — and whether it’s a single-family or multifamily property. In Rhode Island, the FHA loan limit for single-family properties is $736,000.
Rhode Island FHA loan limits by county
| County name | One unit | Two units | Three units | Four units | Median sales price |
|---|---|---|---|---|---|
| BRISTOL | $736,000 | $942,200 | $1,138,900 | $1,415,400 | $640,000 |
| KENT | $736,000 | $942,200 | $1,138,900 | $1,415,400 | $640,000 |
| NEWPORT | $736,000 | $942,200 | $1,138,900 | $1,415,400 | $640,000 |
| PROVIDENCE | $736,000 | $942,200 | $1,138,900 | $1,415,400 | $640,000 |
| WASHINGTON | $736,000 | $942,200 | $1,138,900 | $1,415,400 | $640,000 |
How are FHA loan limits determined?
The FHA sets loan limits annually based on the median house prices in each county in the state. Those loan limits are subject to a nationwide “floor” and a “ceiling” to standardize the minimum and maximum loan amounts borrowers can qualify for.
The floor represents the lowest loan limit available in areas with lower housing costs, while the ceiling is the maximum loan limit applied in high-cost areas. For 2024, the FHA nationwide floor for single-family homes is $498,257, and the nationwide ceiling is $1,149,825.
By adjusting these limits annually, the FHA ensures that its loan program remains responsive to changing real estate markets and economic conditions.
How to qualify for an FHA loan in Rhode Island
Some qualification standards for FHA loans are more lenient than conventional loans, so they’re a good option for first-time homebuyers and people with less-than-perfect credit.
Below, we’ve outlined the FHA loan requirements you need to meet to qualify for a loan in Rhode Island:
→ Minimum credit score. Typically, you need a 580 credit score or above to qualify for a down payment as low as 3.5%. If your credit score is between 500 and 579, you may need to put at least 10% down.
→ Debt-to-income (DTI) ratio. Your DTI ratio is your total debt divided by your pre-tax income. This metric helps lenders gauge whether you can afford to make your monthly mortgage payments alongside your existing debts. FHA guidelines set the maximum DTI at 43%, although you may qualify for an FHA loan with a higher DTI if you have excellent credit and substantial cash reserves.
→ Primary residence. FHA loans are strictly for primary residences, meaning you must intend to live in the home rather than use it for a vacation home, rental or investment property.
→ Appraisal. As the buyer, you must pay for an FHA appraisal. This appraisal ensures the home’s value justifies the loan amount and it adheres to HUD’s property guidelines.
→ Mortgage insurance. If you use an FHA loan to buy your home, you’ll have to pay two types of FHA mortgage insurance premiums: an upfront premium of 1.75% of the loan amount, which you can finance into the mortgage, and an annual premium, ranging from 0.15% to 0.75% of the loan amount, paid monthly. This insurance protects the lender if you default on the loan.
Buying a multifamily property with an FHA loan
The FHA loan program offers a unique opportunity to purchase a multifamily property with two to four units with just a 3.5% down payment. This option allows you to generate rental income by occupying one unit and renting out the others.
To take advantage of this opportunity, you must meet the same requirements needed for a single property:
→ Owner occupancy. You must reside in one of the units as your primary residence for at least one year.
→ Credit score. You need a minimum credit score of 580 for the 3.5% down payment option. Lower scores may necessitate a larger down payment.
→ Financial stability. Lenders will evaluate your financial stability when approving your loan. This involves calculating your DTI ratio and confirming your employment.
| Number of units | Low-cost FHA loan limit in Rhode Island |
|---|---|
| Two | $942,200 |
| Three | $1,138,900 |
| Four | $1,415,400 |
FHA lenders in Rhode Island
Lender | LendingTree rating | Min. FHA credit score | |
|---|---|---|---|
 Flagstar Bank | 580 | ||
 Guaranteed Rate | Not disclosed | ||
 PennyMac | 580 | ||
 Rocket Mortgage | 580 | ||
 BMO Harris | 580 |
