For many first-time buyers, the biggest question isn’t whether they want to own a home. It’s how they’re going to cover the upfront cost of buying one.

Saving for a down payment while paying rent and keeping up with everyday expenses can make homeownership feel farther away than it actually is. And even buyers who have built up savings can be surprised by how many other costs come with purchasing a home.

If you’re hoping to buy your first home in Rhode Island, it’s worth knowing about the assistance programs available before assuming you need to do everything on your own.

RIHousing currently offers several programs designed to help eligible first-time buyers with down payments and closing costs. Three worth knowing about are 15kDPA, Extra Assistance, and FirstGenHomeRI.

Here’s how they differ.

1. 15kDPA: $15,000 Toward Down Payment and Closing Costs

The RIHousing 15kDPA program provides eligible first-time Rhode Island homebuyers with $15,000 toward a down payment and/or closing costs.

The assistance is structured as a 0% interest loan with no monthly payments. Rather than making payments each month, repayment is generally triggered if the home is sold or transferred, is no longer used as the borrower's primary residence, or certain other events specified by the program occur.

Current eligibility requirements include:

• Being a first-time homebuyer purchasing a one- to four-family home or condominium in Rhode Island
• A minimum credit score of 660
• Meeting applicable RIHousing price and income limits
• Completing homebuyer education
• Obtaining an eligible RIHousing-funded first mortgage
• Using the property as your primary residence

For someone who has the income to comfortably manage homeownership but is struggling to accumulate enough cash for both the down payment and closing costs, $15,000 in assistance could change the numbers considerably.

2. Extra Assistance: Up to $20,000

RIHousing's Extra Assistance program offers eligible first-time buyers assistance of up to 6% of the home's purchase price or $20,000, whichever is less.

Unlike 15kDPA, this assistance is a second mortgage with an interest rate matching the borrower's RIHousing first mortgage. RIHousing currently lists no fees or charges for the Extra Assistance loan.

Buyers currently need to:

• Be a first-time homebuyer purchasing a one- to four-family home or condominium in Rhode Island
• Have a minimum credit score of 620
• Complete a homebuyer education course
• Obtain a RIHousing-funded first mortgage
• Occupy the property as their primary residence

This is an important distinction when comparing programs. “Down payment assistance” doesn't always mean free money, and the structure and repayment terms can vary considerably. Understanding what you're receiving is just as important as knowing the dollar amount.

3. FirstGenHomeRI: $25,000 for Eligible First-Generation Buyers

FirstGenHomeRI offers $25,000 toward down payment and/or closing costs to qualifying first-generation homebuyers.

RIHousing currently defines a first-generation homebuyer as someone whose parents or guardians did not own a home during the buyer's lifetime, or lost their home through foreclosure or short sale and do not currently own one. Individuals who lived in foster care also qualify under the program's definition.

The program has additional eligibility requirements. Applicants must currently reside in Central Falls, East Providence, Pawtucket, Woonsocket, Providence (excluding ZIP code 02906), or an eligible portion of Newport. The home being purchased, however, can be located anywhere in Rhode Island.

Eligible buyers must also meet requirements including a 660 minimum credit score, RIHousing price and income limits, HUD-approved homebuyer education, and a RIHousing-funded first mortgage obtained through the RIHousing Loan Center.

Here's the part that makes this program especially notable: the assistance carries 0% interest, requires no monthly payments, and is forgivable after five years if the homeowner continues to own and occupy the property as a primary residence during that period.

FirstGenHomeRI is a pilot program with limited funding, and RIHousing states that funds are provided on a first-come, first-served basis to qualified buyers with a loan commitment and fully executed purchase and sales agreement.

Which Rhode Island First-Time Buyer Program Is Right for You?

This is where it helps to look beyond the dollar amount.

The program offering the most assistance isn't automatically the program that's right for every buyer. Your credit, income, purchase price, current residence, mortgage, available savings, and even your family homeownership history can affect which programs you qualify for.

There may also be requirements you need to complete before closing. RIHousing requires homebuyer education for first-time buyers using its mortgage programs, and individual assistance programs can have additional requirements.

In other words, this is something worth investigating before you've fallen in love with a house.

You May Be Closer to Buying Than You Think

One of the biggest mistakes a potential first-time buyer can make is assuming they can't afford to buy without actually looking at the numbers.

You may discover that you need more time to save, improve your credit, or adjust your price range. But you may also discover that a Rhode Island first-time homebuyer assistance program changes what you thought was possible.

Start by speaking with a knowledgeable lender about your financial situation and the current requirements for any program you're considering. From there, a local real estate agent can help you understand what your budget looks like in the actual Rhode Island housing market and begin your search when you're ready.

Thinking about buying your first home in Rhode Island? You don't need to have every part figured out before reaching out. A conversation about your goals, budget, and timeline can help you understand what your next step should be.

Program availability, funding, eligibility requirements, loan terms, income limits, and other conditions are subject to change. Confirm current information and eligibility directly with RIHousing or a participating lender before making financial decisions.