First-time homebuyer programs in Rhode Island
Through the agency RIHousing, Rhode Island has first-time homebuyer programs to help consumers who are ready to purchase their first home.
First-Time Homebuyer Loan
By getting their first mortgage through RIHousing, first-time homebuyers in Rhode Island can combine that first mortgage with a 15-year, fixed-rate second mortgage to help pay the down payment and closing costs. The down payment/closing cost assistance loan can only be applied on one- to four-family homes or condos with a maximum purchase price of $453,863, and there are also qualifying income limits.
First Down Program
RIHousing’s First Down Program offers $7,500 in down payment assistance to first-time homebuyers purchasing property in Providence or Woonsocket. The $7,500 down payment assistance comes in the form of a zero-percent second mortgage, forgivable after five years, with no charges, fees or monthly payments required.
To be eligible for the First Down Program, borrowers must complete a homebuyer education course, have a credit score of 660 or higher and live in the home as their primary residence, as well as meet qualifying income limits.
Note: All First Down down payment assistance must be closed by Nov. 25, 2020.
Spring7500 Program
Like the First Down Program, RIHousing’s Spring7500 Program offers $7,500 in down payment assistance to first-time homebuyers, but is available on homes purchased throughout the state. The $7,500 in down payment assistance is a zero-percent loan with no charges, fees or monthly payments. The amount becomes due if the borrower no longer lives in the home as a primary residence, or the home is refinanced, sold or transferred.
As with the First Down Program, eligibility for the Spring7500 Program includes completion of a homebuyer education course, a credit score of 660 or higher and adherence to income and purchase limits.
FirstHomes Tax Credit
Available to first-time homebuyers in Rhode Island (as well as repeat buyers in areas of Central Falls, Pawtucket, Providence and Woonsocket), the FirstHomes Tax Credit is a mortgage credit certificate (MCC) that allows borrowers to claim up to a $2,000 federal tax credit per year. The program provides tax savings for eligible homebuyers and reduces a borrower's federal tax liability, which can be claimed for the life of the mortgage.