Rhode Island First-Time Homebuyer Assistance Programs

Rhode Island may be the smallest state in the country, but real estate prices here can look pretty big. Home prices in Rhode Island have increased over 7 percent from the year prior as of February 2025, according to Redfin data. If you’re a first-time homebuyer in Rhode Island, you don’t have to feel overwhelmed, though. You could be eligible for an affordable mortgage and down payment assistance through Rhode Island Housing, the state’s housing finance agency. Here’s a look at what’s available if you’re purchasing your first home in the state.

Rhode Island first-time homebuyer programs

RIHousing First-Time Homebuyer Loan

Rhode Island Housing (RIHousing) offers up to 100 percent financing (with a maximum loan amount of $736,000) through its First Time Homebuyer Loan program and accompanying down payment assistance. These loans can be obtained through RIHousing directly or through one of the agency’s participating mortgage lenders.

• Requirements
  

  • Must not exceed purchase price limit of $838,592
  • Must meet household income limits of $134,320 for a two-person household or $154,468 for a three-plus-person household
  • Must complete a homebuyer education class

• Pros and cons
  

  Pros

  • No down payment required
  • Financing available for 100 percent of home purchase price
  • More than 70 participating lenders

  Cons

  • Limited information online about repayment terms

Rhode Island down payment assistance

RIHousing 10kDPA

RIHousing’s 10kDPA program is a $15,000 deferred down payment assistance loan for first-time homebuyers. It doesn’t require monthly payments until the home is no longer your primary residence. That means you can enjoy interest-free assistance until you sell or move out of your home or refinance your mortgage.

To be eligible for the 10kDPA program, you must have a minimum credit score of 660 and complete a homebuyer education course. You’ll also need to get your first mortgage through RIHousing (or any participating lender) and meet purchase price and household income limits, which are the same as those for the First-Time Homebuyer Loan program.

• Pros and cons
  

  Pros

  • Repayment deferred until you sell the home
  • Comes with zero percent interest
  • Open to single- and multi-family homes and condos
  • Can be used for down payment and/or closing cost assistance

  Cons

  • Requires minimum 660 credit score

FirstGenHomeRI

If you’re the first member of your family to buy a home, or if your parents or guardians ever lost your family home to a foreclosure or short sale and don’t own a home now, you might be able to qualify for up to $25,000 of assistance for a down payment and closing costs. It’s part of the agency’s pilot program, FirstGenHomeRI. The funds are packaged as a zero-interest, forgivable loan, and if you remain in the home for at least five years, you won’t have to pay the money back. To qualify, you’ll need a minimum 660 credit score, and you’ll need to meet purchase price and income limits.

Additionally, the program is only open to current residents of Central Falls, East Providence, Pawtucket, Woonsocket, Providence (excluding residents in zip code 02906) and a specific census tract in Newport, although they can buy a home anywhere in the state. The funds for this program are available on a first-come, first-served basis.

• Pros and cons
  

  Pros

  • Forgivable loan if you live in the home for five years
  • Comes with zero percent interest
  • Open to single- and multi-family homes and condos
  • Can be used for down payment and/or closing cost assistance

  Cons

  • Requires minimum 660 credit score
  • Only available to residents of certain areas

RIHousing Extra Assistance

First-time homebuyers in Rhode Island might also qualify for down payment assistance of up to $20,000 or 6 percent of their home’s purchase price, whichever is less, through RIHousing’s Extra Assistance loan. The interest rate on this second mortgage, in most cases, is the same as the one on your first mortgage, with no extra fees. To qualify, you must be a first-time buyer taking out an RIHousing first mortgage, complete a homebuyer education course and have a minimum 620 credit score. You must also occupy the home as your primary residence.

• Pros and cons
  

  Pros

  • No fees or charges
  • Up to $20,000 in assistance
  • Open to single- and multi-family homes and condos

  Cons

  • Can only be used for the down payment

Other Rhode Island homebuyer assistance programs

Homebuyer Renovation Mortgage/203k Loan

RIHousing also offers assistance for buying a fixer-upper, provided that the total combined costs (purchase and renovation expenses) do not exceed FHA loan limits. You’ll need to have a contract with a state-licensed general contractor, and the renovation funds will be held in an escrow account. If you manage to stay under budget, excess funds will apply to your principal balance.

The program requires a homebuyer education course that costs $15, and you’ll need to find a participating lender to apply.

• Requirements
  

  • Total purchase and rehabilitation costs must not exceed FHA maximum loan limits
  • Must have a construction contract with a state-licensed and insured general contractor

• Pros and cons
  

  Pros

  • Over 70 participating lenders
  • Can now be used to fund the building of accessory dwelling units (ADUs)

  Cons

  • Requires monthly repayment

Other Rhode Island first-time homebuyer loans

Along with RIHousing’s programs, first-time homebuyers in Rhode Island might also qualify for other types of national mortgages, including FHA, VA or USDA loans. These can be ideal if you don’t have a substantial down payment saved or have a lower credit score.

However, for USDA and VA loans, you’ll need to meet additional eligibility requirements, while FHA loans simply require a credit score of at least 500 (580 if you want to make a smaller down payment of 3.5 percent).

There are also specialized programs geared toward certain types of borrowers, such as teachers or police officers.

Get started

If you’re interested in an RIHousing mortgage program, visit the agency’s website to learn more and browse the homebuyer education class schedule to sign up for the next available course. If you’re not sure of where to start or how to apply, reach out to the organization to schedule a consultation with a mortgage originator who can help you understand your options and walk you through the preapproval process.

Here are some other steps to take to get started:

• Explore other first-time homebuyer programs by state