Home LoansFHA Loans

2019 FHA Loan Limits in Rhode Island

The FHA loan limit for a single-family home in all five Rhode Island counties is $454,250, higher than the $314,827 limit that applies to lower-cost areas throughout the U.S.

That means if you see an opportunity for homeownership in the tiny state of Rhode Island, an FHA loan might be help you make that vision a reality.

Just over 1 million people call Rhode Island home, and the state has a median home value of $242,200, which is higher than the $217,600 median home value in the United States.

Rhode Island is the smallest state in the union by land size, covering an area of just 1,214 square miles. The state’s largest city is its capital, Providence, with a population of 180,393. The median home value in Providence is $181,100.

If you’re looking to secure an FHA loan in Rhode Island, you have plenty of company. According to a 2016 FHA report, there were 5,407 FHA home loans granted in the state, totaling $1.1 billion. Rhode Island had the fourth-largest percentage of FHA loans issued within a state, with 32.4% in 2015 (the most recent year for which this data is available). In 2018, 0.48% of FHA loans made nationwide were issued in Rhode Island.

Rhode Island FHA Loan Limits by County

FHA Loan Limits in Rhode Island
County Name One-Family Two-Family Three-Family Four-Family Median Sale Price
Bristol $454,250 $581,500 $702,900 $873,550 $395,000
Kent $454,250 $581,500 $702,900 $873,550 $395,000
Newport $454,250 $581,500 $702,900 $873,550 $395,000
Providence $454,250 $581,500 $702,900 $873,550 $395,000
Washington $454,250 $581,500 $702,900 $873,550 $395,000

How are FHA loan limits determined?

The U.S. Department of Housing and Urban Development (HUD) sets FHA loan limits based on the conforming loan limit — or how large of a mortgage Fannie Mae and Freddie Mac will purchase. In 2019, that limit is $484,350. The FHA’s “floor” is the largest mortgage the agency will issue in most of the country and is set at $314,827 for 2019.

The FHA “ceiling” applies to high-cost areas and is set at 150% of the conforming loan limit, or $726,525. Outside of a few exceptions, this is the highest mortgage the agency will insure for a single-family home. In other areas, loan limits fall somewhere between the FHA floor and ceiling.

Here are the 2019 standard FHA limits for all property types:

  • One-unit: $314,827
  • Two-unit: $403,125
  • Three-unit: $487,250
  • Four-unit: $605,525

Here are the 2019 standard FHA limits for high-cost areas:

  • One-unit: $726,525
  • Two-unit: $930,300
  • Three-unit: $1,124,475
  • Four-unit: $1,397,400

Do you qualify for an FHA loan in Rhode Island?

If you don’t have the strongest credit score or much money for a down payment on a home, an FHA loan may be a very attractive option. To qualify for an FHA loan, you’ll need a minimum credit score of 500, but that will require you to have at least a 10% down payment. The lowest available down payment for an FHA loan is 3.5%, but you’ll need a credit score of at least 580.

A lending institution granting you an FHA loan will also consider your debt-to-income ratio, which is your total debt compared with your monthly income. To find out whether this kind of loan may be right for you, visit LendingTree’s FHA loan page, which provides step-by-step instructions on preparing to apply, along with more details on how the loans work. You can also compare FHA loan offers.

 

Compare FHA Loans for Free