Down Payment Path

Down Payment Assistance Programs in Rhode Island

Rhode Island offers several programs to help homebuyers manage the upfront costs of purchasing a home. These initiatives are designed to support both first-time and repeat buyers, making homeownership more accessible across the Ocean State.

Extra Assistance Loan Program

The Extra Assistance Loan Program, offered by Rhode Island Housing, provides financial support for down payments and closing costs.

  • Offers up to $15,000 in assistance as a forgivable loan.
  • Forgiveness occurs after five years of continuous residency in the home.
  • Pairs with Rhode Island Housing’s affordable mortgage products, including FHA, VA, USDA, and conventional loans.
  • Open to eligible buyers meeting income and property requirements.

FirstGenHomeRI Program

The FirstGenHomeRI Program is designed to assist first-generation homebuyers with down payment assistance.

  • Provides up to $25,000 for down payments and closing costs.
  • Funds are offered as a forgivable loan, forgiven after a set residency period.
  • Targets eligible buyers meeting income guidelines, with broader accessibility in certain communities.

USDA Rural Development Loans

For buyers in rural areas of Rhode Island, the USDA Rural Development Loan offers no down payment financing options.

  • Available to low- and moderate-income buyers in USDA-designated rural areas.
  • Offers competitive interest rates and flexible credit requirements.
  • Can be combined with Rhode Island Housing programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program provides tax benefits for homebuyers, reducing the long-term cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their annual mortgage interest.
  • Can be paired with Rhode Island Housing loans and down payment assistance programs.
  • Income and purchase price limits apply, accommodating a wide range of buyers.

Local Assistance Programs

Many cities and towns in Rhode Island offer additional support to help buyers cover upfront costs.

  • Programs in areas like Providence, Warwick, and Cranston provide grants or low-interest loans for down payments and closing costs.
  • Some local initiatives target buyers in revitalization neighborhoods or provide enhanced benefits for educators and first responders.
  • Eligibility and funding levels vary based on location and program specifics.

Rhode Island’s down payment assistance programs are designed to reduce financial barriers and make homeownership more attainable. Whether you’re purchasing your first home or upgrading, these resources can help you achieve your dream of owning a home in the Ocean State.