The $10K Down Payment Assistance (DPA) program by RIHousing offers eligible Rhode Island first-time homebuyers up to $10,000 to cover their down payment and closing costs. This forgivable loan makes it easier for residents to achieve their dream of homeownership with fewer financial barriers. In a market where prices continue to rise and inventory is tight, this program gives buyers a major head start.
❓ What Is the RIHousing $10K DPA Program?
This program provides a $10,000 second mortgage with no interest and no monthly payments. The loan is completely forgiven after five years if the buyer remains in the home as their primary residence. If you move, refinance, or sell before five years, a prorated amount must be repaid.
The $10K DPA must be used in combination with a RIHousing FirstHomes Loan, which is a 30-year, fixed-rate mortgage designed for first-time homebuyers.
🏘 Why This Program Matters in Rhode Island
Rhode Island’s housing market has seen significant growth in recent years. Rising home prices and limited inventory make it difficult for buyers—especially younger or lower-income residents—to save enough for a down payment. That’s where RIHousing’s $10K DPA program steps in.
In many areas of the state, even a modest home can require $10,000–$15,000 upfront. This program helps bridge that gap, especially for families who can afford a monthly mortgage but struggle with initial costs.
✅ Who Is Eligible?
To qualify for the RIHousing $10K DPA program, you must:
- 👨👩👧👦 Be a first-time homebuyer (or not have owned a home in the past 3 years)
- 🏡 Purchase a 1–4 family home or condo in Rhode Island
- 📉 Meet income and purchase price limits (varies by city/county)
- 📘 Complete a homebuyer education course from a HUD-approved agency
- 💼 Use a RIHousing-approved lender
Veterans and buyers in certain “targeted areas” may also be exempt from the first-time buyer rule.
💵 Benefits of the $10K DPA
- 💲 Receive $10,000 in down payment and closing cost assistance
- 📉 0% interest, no monthly repayment
- ⏳ Fully forgivable after 5 years of occupancy
- 🔗 Combine with FirstHomes Loan and other incentives
Many local lenders in the state are very familiar with this program, making the process seamless for eligible buyers.
📘 How Does It Work with the FirstHomes Loan?
The FirstHomes Loan is a fixed-rate mortgage loan provided through RIHousing. It must be used in conjunction with the $10K DPA. Together, they provide:
- 🔐 Predictable monthly payments with fixed interest rates
- 🧾 Easier underwriting guidelines for moderate-income households
- 📋 Built-in counseling and education support
This combination allows buyers to secure financing and receive assistance without having to shop for multiple disconnected programs.
📝 How to Apply for RIHousing DPA
- 📞 Contact a RIHousing participating lender
- 🧾 Apply for a FirstHomes mortgage loan
- 🎓 Complete your homebuyer education with a HUD-approved agency
- 📂 Submit income verification, ID, and other required documents
- 🏠 Close on your home and receive $10K assistance at settlement
📋 Program Requirements
- 📊 Minimum credit score of 620
- 📆 Income and purchase price limits vary by location
- 🏘 Property must be in Rhode Island and serve as your primary residence
- 📘 Buyer must complete a certified homebuyer education course
📈 Who Is This Program Best For?
This program is ideal for:
- 🎓 Recent graduates entering the workforce
- 👨👩👧 Families with stable income but no large savings
- 🛠 Skilled tradespeople or essential workers
- 🧓 Older renters transitioning into retirement homes
💡 Tips to Improve Your Approval
- 📋 Work with a lender who already partners with RIHousing
- 📆 Apply early, as funds may be limited or seasonally paused
- 🧾 Keep recent tax returns, pay stubs, and bank statements on hand
- 📞 Contact RIHousing or your lender if you need help navigating the paperwork
❓ FAQs – RIHousing $10K DPA
📌 Do I need to repay the $10K?
No—if you live in the home for at least 5 years. If you sell, refinance, or move before then, you’ll repay a prorated amount based on how long you’ve stayed.
🔗 Can I combine this with other assistance?
Yes! You can combine it with other RIHousing or local municipal programs to boost your total buying power.
📊 What are the 2024 income limits?
Limits vary by city and county. For example, in Providence County, a household of 2 must earn less than approx. $98,000 to qualify. Always check the latest chart with your lender.
🏠 What types of homes are eligible?
Single-family homes, condos, and 1–4 unit properties (if you occupy one unit). Manufactured homes may qualify with restrictions.
🎯 Why Use the $10K DPA in Rhode Island?
The RIHousing $10K Down Payment Assistance program provides an exceptional opportunity for Rhode Islanders to buy a home with less out-of-pocket cash. When paired with a FirstHomes loan, it offers predictable financing and generous support that’s hard to find elsewhere. If you’re ready to move from renting to owning, this program could be your path forward.
📥 Apply Now at RIHousing Official Website