New Program Helps First-Generation Homebuyers In Rhode Island

PROVIDENCE, RI — Rhode Island launched a new program Wednesday aimed at paving the way for first-generation homebuyers. The initiative, FirstGenHomeRI, aims to address inequities and other barriers to homeownership.

Gov. Dan McKee announced the program with RIHousing, which will administer it.

"Access to homeownership opportunities has significant implications for family outcomes," McKee said. "Down payment assistance programs targeted at opening the doors to homeownership to first-generation buyers can help reduce the racial wealth gap and are a down payment on our future: the future of Rhode Island families and their ability to live and thrive in our state."

The pilot program will be available to residents living in certain areas of the state, offering $25,000 towards a down payment and closing costs.

"First generation homebuyers deserve the opportunity to put down roots in Rhode Island and benefit from the stability owning a home can provide," Lt. Gov. Sabina Matos said. "I’m honored to stand with Governor McKee as we make this announcement and support an effort that addresses the inequities and barriers to homeownership that exist for low-income and minority communities."

The governor's office cited studies that said that when parents who own a home, their children are more likely to, as well. That creates stability and generational wealth, which positively impacts future generations.

"Barriers to homeownership exist for many low income and minority borrowers. It becomes especially true for first-generation homebuyers," said Carol Ventura, RIHousing's executive director. "Traditionally, these borrowers compete with peers who may be able to tap into family resources to purchase a home and who benefit from the lived experience that comes from growing up in a home your family owns rather than an apartment."

The pilot program is targeted to residents of Central Falls, East Providence, Pawtucket, Woonsocket, Providence (excluding zip code 02906) and Newport residents in census tract 44005040500. These communities have some of the highest levels of needs for homeownership assistance in the state, the governor's office said. The communities were chosen based on factors including median housing costs, household size and income. These areas also have similar or higher concentrations of minority populations, compared to the state average.

"Many Pawtucket residents are eligible for the kind of financial support this program provides, and I encourage those interested to please reach out to RI Housing," Mayor Donald Grebien said. "The opportunity for homeownership is so important, and we know that a program like this can make dreams into reality."

To qualify for the program, residents must be first-generation and first-time homebuyers looking to purchase a one to four-family home or condominium. Buyers must meet loan, income and credit score requirements and live in the house as their primary residence. If the buyer remains in the home for at least five years, they will not need to repay the down payment assistance grant.