Rhode Island may be the smallest state in the country, but property prices here can look quite large. According to Redfin data, home prices in Rhode Island have increased by more than 7% from the previous year in February 2025. If you are a first-time homebuyer in Rhode Island, you don’t need to feel overwhelmed. Eligible for an affordable mortgage Down payment support through Rhode Island Housing, the state housing finance agency. Check out what you can use if you are buying your first home in the state.
Rhode Island’s first home buyer program
Repeat the first home buyer loan
Rhode Island Housing offers up to 100% financing (up to $736,000 in loans) through its first-time home buyer loan program and the associated down payment support. These loans can be obtained by filing a lawsuit in person or through one of the institution’s participating mortgage lenders.
Rhode Island Down Payment Support
10kdpa rear
Rihousing’s 10kDPA program is a $15,000 deferred down payment assistance loan for first-time home buyers. You don’t need to pay monthly until your home will no longer become your primary residence. This 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 complete a minimum credit score of 660. HomeBuyer Education Course. You will also need to obtain your first mortgage through Rearing (or participating lenders) and meet the purchase price and household income limits. This is the same as your first-time home buyer loan program.
FirstGenhomeri
If you are the first member of the family to buy a home, or if your parents or guardian loses your family to the home on foreclosure or short sale and you do not currently own the home, you may be able to qualify for up to $25,000 in support for down payment and closing costs. This is part of the agency’s pilot program, FirstGenhomeri. The funds are packaged as loans allowed with zero profits, and if you stay home for at least five years, you don’t have to pay back the money. To qualify, you must have a minimum credit score of 660 and meet your purchase price and income limit.
Additionally, the program is open only to current residents of Central Falls, East Providence, Pawtucket, Woncket, Providence (except residents of Zip Code 02906) and certain Census Areas in Newport, but homes can be purchased anywhere in the state. Funding for this program is available on a first-come, first-served basis.
Repeat the extra support
First-time home buyers in Rhode Island will also qualify for down payment assistance, whichever is lower, through Rihousing’s additional support loans. The interest rate on this second mortgage is mostly the same as on your first mortgage, with no additional charges. To qualify, first-time buyers must take out their first home loan from Rearing, complete their home buyer education course, and have a minimum credit score of 620. You also need to occupy your home as your main residence.
Other Rhode Island Home Buyer Support Programs
HomeBuyer Renovation Mortgage/203k Loan
Rihousing also provides assistance in purchasing fixer uppers provided that the total total cost (purchase and renovation costs) does not exceed the FHA loan limit. You must sign a contract with a nationally licensed general contractor and the renovation fund will be held in your escrow account. If you can stay within your budget, excess funds will be applied to your principal balance.
This program requires a HomeBuyer Education course that costs $15 and requires you to find a participating lender to apply.
Other Rhode Island First Home Buyer Loans
In addition to Rihousing’s program, first-time home buyers in Rhode Island can be found on FHA, VA, or BA, or USDA loan. These are ideal if you haven’t saved a significant down payment or have a low credit score.
However, for USDA and VA loans, additional eligibility requirements must be met, while FHA loans require a credit score of at least 500 (580 if you want a 3.5% down payment smaller).
There are also specialized programs aimed at certain types of borrowers, such as teachers and police officers.
Let’s get started
If you are interested in a mortgage program, please visit the agency’s website to find out more, browse the HomeBuyer Education class schedule, and sign up for the next available course. If you’re unsure where to start, reach out to your organization, schedule a consultation with a mortgage originator that will help you understand your options and proceed with the pre-approval process.
Here are a few other steps you should take to get started:
