Rhode Island Launches Program Helping First-Time Homebuyers With Down Payments

RHODE ISLAND — Rhode island launched a new program providing down payment assistance grants to first-time homebuyers, Gov. Dan McKee said Wednesday.

State officials said the program aims to create more homeownership opportunities and addresses financial barriers brought on by rising housing costs throughout the state.

Available to eligible Rhode Island first-time homebuyers, the program offers $17,500 in down payment and closing cost assistance grants. The program is being funded with $30 million of the $250 million provided by the federal American Rescue Plan Act. RI Housing will serve as the administrator of the program.

"Homeownership is one of the most important ways to build generational wealth, yet Rhode Island has one of the lowest homeownership rates in the country, largely because families and individuals cannot afford the down payment," McKee said. "As we seize the moment to make significant investments in housing and in communities across the state, this down payment assistance program is an important boost for families looking to make their home in Rhode Island."

Eligible applicants must be first-time homebuyers purchasing a one-to-four-family home or condominium in Rhode Island, meet income and credit score guidelines, and must live in the home as their primary residence.

Homebuyers must also complete a RIHousing-approved homebuyer education class to prepare them for sustainable homeownership. The down payment assistance is a grant that does not need to be repaid.

Interested first-time homebuyers can find complete details and how to apply online at the program's website or call 401-450-1391.