2025 FHA Loan Limits in Rhode Island
FHA loans, which are home loans insured by the Federal Housing Administration (FHA), offer several unique benefits. For example, you can put as little as 3.5% down and qualify with a lower credit score than what’s required for a conventional loan.
But there’s a limit to how much you can borrow. The FHA loan limit for single-family homes in counties across Rhode Island is $736,000 in 2025. Below, we’ll cover how that limit is determined, how to qualify for an FHA loan and top local lenders to consider.
Rhode Island FHA loan limits by county
Rhode Island single-family FHA loan limits
| County name | One unit | Two units | Three units | Four units | Median sales price |
|---|---|---|---|---|---|
| BRISTOL | $736,000 | $942,200 | $1,138,900 | $1,415,400 | $625,000 |
| KENT | $736,000 | $942,200 | $1,138,900 | $1,415,400 | $625,000 |
| NEWPORT | $736,000 | $942,200 | $1,138,900 | $1,415,400 | $625,000 |
| PROVIDENCE | $736,000 | $942,200 | $1,138,900 | $1,415,400 | $625,000 |
| WASHINGTON | $736,000 | $942,200 | $1,138,900 | $1,415,400 | $625,000 |
How are FHA loan limits determined?
The FHA updates its loan limits each year using a formula set forth by the National Housing Act (NHA). Loan limits are capped at 115% of the estimated area median home price for a one-unit home, and multifamily loan limits are calculated based on fixed multiples. However, loan limits for each jurisdiction must also fall between a floor of 65% and a ceiling of 150% of the national conforming loan limit, which is $806,500 for 2025. There are a few exceptions to these rules in high-cost areas outside of Rhode Island.
The median sales price estimate for all counties in Rhode Island is $625,000 for 2025, so FHA loans are capped at $736,000 for single-family homes, which falls between the national floor of $524,225 and the national ceiling of $1,209,750 for one-unit properties. FHA loan limits in Rhode Island go up to $1,415,400 for four-unit properties.
How to qualify for an FHA loan in Rhode Island
An FHA loan may be a good option if you’re a first-time homebuyer or if you have less-than-perfect credit, since some qualification standards for FHA loans are more lenient than for conventional loans. You’ll need to meet the following minimum criteria to qualify:
- Minimum credit score of 500: You need a credit score of 580 or above to qualify for an FHA loan with a down payment of as low as 3.5%. If your credit score is between 500 and 579, you’ll need to put at least 10% down.
- Debt-to-income (DTI) ratio of no more than 43%: 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 debt obligations. 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.
- Live in the property as your 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 or rental or investment property.
- Get an appraisal: As the buyer, you must pay for an FHA appraisal. This appraisal ensures the home’s value justifies the loan amount and that it adheres to the U.S. Department of Housing and Urban Development (HUD)’s property guidelines. Remember, you can only apply for a loan up to $736,000. So if the property’s appraised value is greater than that, you’ll need to make up the difference with your down payment, for example.
- Pay mortgage insurance premiums: 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. Depending on your down payment amount, you’ll pay the annual premium either for 11 years or for the entire loan term.
Buying a multifamily property with an FHA loan
The FHA loan program offers a unique opportunity to purchase a multifamily home with two to four units a down payment of just 3.5%. This option allows you to generate rental income by occupying one unit and renting out the others, an investment strategy known as house hacking.
To take advantage of this opportunity, you must meet the same requirements listed above, including living in the property as your primary residence for at least one year. You may also need to have cash reserves left over after closing, depending on your financial situation.
For example, if your FHA loan is manually underwritten, you’ll need cash reserves of at least one monthly mortgage payment to qualify for a duplex and at least three monthly mortgage payments for all other multi-unit properties.
Your mortgage must also fall within the FHA loan limits for multifamily properties listed below.
| Number of units | Low-cost FHA loan limit |
|---|---|
| Two | $942,200 |
| Three | $1,138,900 |
| Four | $1,415,400 |
FHA lenders in Rhode Island
Lender | LendingTree rating | Minimum FHA credit score | |
|---|---|---|---|
 | 580 | ||
 | 580 | ||
 | 580 | ||
 | 620 | ||
 | 580 |
