Rhode Island first-time homebuyer grants and down payment assistance (2026)

RIHousing’s three assistance loans compared

Scroll the table sideways to see every column.

Sources: ⁠²⁠³⁠⁴. The 6% cap only limits Extra Assistance on homes priced under about $333,000. At that price and above, it pays the full $20,000 ⁠³. RIHousing notes that some of its first-mortgage products cannot be paired with 15kDPA, so ask your loan officer which loan you are being offered ⁠².

How 15kDPA and FirstGenHomeRI are repaid or forgiven

15kDPA is a deferred loan you eventually repay in full. It charges no interest and has no monthly payment. The $15,000 comes due at the first of these events: you stop living in the home as your primary residence; you sell, convey, transfer or mortgage the property; or someone other than you takes title to any part of it ⁠². Refinancing counts, so a buyer who refinances to a lower rate in a few years must repay the $15,000 out of the new loan or in cash.

FirstGenHomeRI is forgiven after five years. It is a 0% loan with no monthly payments. RIHousing says the full $25,000 does not have to be repaid once you have owned the home and lived in it as your primary residence for five years ⁠⁴. To qualify:

• First-generation status. Your parents or guardians never owned a home during your lifetime, or lost their home to foreclosure or a short sale, and you do not own one now. Anyone who grew up in foster care also qualifies ⁠⁴.
• Where you live now. You must currently live in Central Falls, East Providence, Pawtucket, Woonsocket, Providence outside ZIP code 02906, or Newport census tract 44005040500. You can then buy anywhere in Rhode Island ⁠⁴.
• Every borrower qualifies. A co-borrower who is not a first-time buyer, such as a fiancé, makes the application ineligible ⁠⁴.
• Status. This is a pilot with limited funds. Money goes first come, first served to buyers who already have a loan commitment and a fully signed purchase and sales agreement ⁠⁴.

Extra Assistance carries interest and a 15-year term

Extra Assistance is the only one of the three that RIHousing does not describe as interest-free or payment-free. It is recorded as a second mortgage on your home. It charges the same interest rate as your RIHousing first mortgage, runs for 15 years and has no fees ⁠³. On Oct. 16, 2026, the Loan Center posted 6.875% (7.684% APR) for FHA, VA and RD purchase loans and 7.750% for conventional loans. At those rates the second loan adds a real monthly cost ⁠⁸. Its advantage is the lower credit floor of 620 and a larger amount than 15kDPA. Ask your loan officer for the monthly payment on both options before choosing.

Income and price limits by Rhode Island housing market area

RIHousing sets limits by city or town and household size, using three market areas. The numbers below are the ones posted on its homebuyer and Loan Center pages in October 2026. The site gives no effective date ⁠¹.

Scroll the table sideways to see every column.

The purchase price cap on all mortgage revenue bond (MRB) programs is $915,883. Maximum loan amounts are $832,750 conventional and $787,750 FHA, VA or USDA ⁠¹⁠⁸.

RIHousing’s pages say these income limits apply to mortgages processed through the Loan Center, and that Participating Lenders can serve eligible buyers at any household income ⁠¹. However, the 15kDPA and FirstGenHomeRI pages still say you must meet RIHousing’s price and income limits ⁠²⁠⁴. Plan on the table applying to any assistance loan, and have your lender confirm the limit for the program it registers you in. To find your figure, locate the town where the home is (not where you live now), then read across by household size.

Credit scores, debt ratios and the approved-lender rule

Credit. The minimum credit score is 620 for Extra Assistance and 660 for 15kDPA and FirstGenHomeRI ⁠²⁠³⁠⁴.

Debt-to-income. RIHousing does not publish a maximum debt-to-income ratio on its public pages. Its lender guidelines are kept on a Participating Lender Portal that requires a login ⁠¹⁰. Your loan officer applies the cap for the loan type (FHA, VA, RD or conventional).

Lenders. Only approved RIHousing lenders can offer its loans ⁠¹⁰. You can work with the RIHousing Loan Center, its in-house mortgage office in Providence, or with a Participating Lender from RIHousing’s dropdown directory. Primary Residential Mortgage, Main Street Home Loans and Movement Mortgage did the most RIHousing first mortgages in 2025 ⁠⁷. FirstGenHomeRI is available only through the Loan Center ⁠⁴. RIHousing says its compliance review of a first mortgage usually takes 3 to 4 business days ⁠¹⁰.

RIHousing’s class versus a HUD-approved course

First-time buyers must complete homebuyer education before closing on any RIHousing loan. Only one borrower on a joint loan has to take it ⁠⁶. Your options:

• RIHousing live virtual class. Upcoming sessions are Nov. 3 and Dec. 1, 2026 at 6:00 p.m. There is also an in-person class in Spanish on Oct. 21, 2026 ⁠⁶.
• eHomeAmerica on-demand course. Self-paced, in English or Spanish, for a one-time $50 fee ⁠⁶.
• Certificate from a Rhode Island HUD-approved nonprofit counseling agency. RIHousing accepts these too ⁠⁶. The Housing Network of Rhode Island’s member agencies charge $99 per household (up to two co-borrowers). That covers 8 hours of HUD-approved education plus a one-on-one session with a counselor, and the certificate is valid for 2 years ⁠¹².

FirstGenHomeRI is stricter. It requires a HUD-approved course from one of four partner agencies: Church Community Housing Corporation, NeighborWorks Blackstone River Valley, PCF Development or West Elmwood Housing Development Corporation. RIHousing’s own class does not count ⁠⁴. Buyers of a 2-4 unit home also need landlord-tenant education. Buyers using the 203(k) renovation loan need an extra $15 FHA 203(k) course ⁠⁴⁠⁶.

Programs that have closed or changed: the REALTORS® grant, HomeSecure and the old MCC

• RI REALTORS® Homebuyer Grant (closed). The grant paid $1,000, or $2,000 for veterans and active military, and was forgiven immediately. It was for first-time buyers with income under $92,080 using a RIHousing first mortgage. RIHousing’s page says all funds have been reserved and the program is closed ⁠⁵.
• HomeSecure Grant. RIHousing’s page describes a limited-time grant offered through the Loan Center. It sets aside an emergency fund equal to three months of mortgage payments (principal, interest, taxes and insurance) for your first three years. Any money left after three years goes toward your loan principal ⁠⁹. Requirements include a financial literacy course with a RIHousing community partner before you apply, an online post-purchase course and automatic mortgage payments. The page lists RIHousing’s minimum credit score as 620 ⁠⁹. It is not listed on RIHousing’s main homebuyer page, so ask the Loan Center whether funds remain ⁠¹.
• Mortgage credit certificate (not currently offered). RIHousing reopened its MCC as the FirstHomes Tax Credit on July 1, 2014. Its board approved a final $25 million in authority for a 2022 MCC Program in December 2021 ⁠¹¹. No MCC appears among RIHousing’s homebuyer programs as of Oct. 20, 2026 ⁠¹.

Cranston and Providence funds you can add to RIHousing assistance

Cranston. The Department of Community Development runs two first-come, first-served programs for income-eligible first-time buyers purchasing in the city, and you can use only one of them ⁠¹³:

• Closing Cost Assistance pays up to $3,000 ⁠¹³.
• Down Payment Assistance matches 50% of your down payment. The city’s web page caps it at $5,000, but the guidelines revised in November 2024 say $15,000, so ask the office which applies ⁠¹³⁠¹⁴.

Both become grants after five years living in the home. If you sell, refinance, change the title or move out sooner, you repay all of it ⁠¹³⁠¹⁴. You must take a HUD-approved course of at least 8 hours and get a Lead Safe Certificate for the property. You also sign a 5-year occupancy agreement recorded with the City Clerk ⁠¹⁴. Income must be at or below 80% of median under HUD limits effective May 1, 2026: $62,800 for one person, $89,700 for four and $118,450 for eight ⁠¹³. Applications are taken in person and processed within 48 hours of a complete file. Your closing agent must send the draft settlement statement at least three business days before closing ⁠¹⁴.

Providence. The city’s 2026-27 HUD budget, signed May 22, 2026, includes $550,000 in HOME funds for forgivable down payment and closing cost loans for first-time buyers. That budget still needed HUD approval through the city’s Annual Action Plan ⁠¹⁵. The release gives no per-buyer amount or application date. Until the city publishes them, Providence buyers should rely on RIHousing programs, including FirstGenHomeRI ⁠⁴.

Applying for RIHousing down payment assistance step by step

1. Check your town’s limit

   Find the home’s city or town in the RIHousing limits table, and keep the $915,883 price cap in mind ⁠¹.

2. Pick your program

   If you live in an eligible FirstGenHomeRI community and are a first-generation buyer, start with the Loan Center at 401-457-1211 ⁠⁴. Otherwise, compare 15kDPA (660 score) with Extra Assistance (620 score) ⁠²⁠³.

3. Take the right class

   Use RIHousing’s class or a HUD-approved Rhode Island nonprofit course. For FirstGenHomeRI, use one of the four partner agencies ⁠⁴⁠⁶.

4. Get pre-approved

   Apply online through the Loan Center or with a Participating Lender. Expect to document your income, assets, credit and job history ⁠⁷⁠⁹.

5. Sign a purchase and sales agreement

   For FirstGenHomeRI, funds are committed only after you have both a loan commitment and a fully signed agreement ⁠⁴.

6. Close and file your second-loan papers

   RIHousing’s compliance review takes 3 to 4 business days, and most of its loans close in 30 to 45 days ⁠¹⁰. Keep the second-mortgage note, because 15kDPA comes due when you sell or refinance ⁠².

If one lender turns you down, another Participating Lender or the Loan Center can review your file. Buyers below 620 can use the free credit report at annualcreditreport.com that RIHousing recommends before reapplying ⁠⁹. Other states’ programs are on the first-time homebuyer grants page, and other Rhode Island guides are on the Rhode Island page.