See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 3, 2026
Homebuyer Programs in Westerly, RI (2026)
Westerly is a scenic coastal town in Washington County at Rhode Island's southwestern border with Connecticut, known for its beaches, historic downtown, and growing housing market. With a median home price around $520,000, Westerly is more affordable than many Rhode Island coastal communities. Buyers here can access a standout local program through Westerly Community Credit Union, which offers FHLBB mortgage grants of up to $30,806 for down payment, closing costs, and rate buydowns — and first-time buyer status is not required. State programs from RIHousing add significant additional assistance, including the 15kDPA program at $15,000, Extra Assistance providing up to 6% of the purchase price or $20,000, and the Spring7500 grant of $7,500. South County Habitat for Humanity also serves Washington County and is actively building 22 new affordable homes in Westerly. By combining the WCCU grant with state DPA programs, eligible buyers could access over $45,000 in total assistance.
City Programs in Westerly
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| WCCU FHLBB Mortgage Grant | Grant | Up to $30,806 | No | View → |
- Type:
- Grant
- Amount:
- Up to $30,806
- First-time only:
- No
State Programs in Rhode Island
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FirstGenHomeRI | Forgivable Loan | $25,000 | Yes | View → |
| RI AnchorHome | Zero-Interest Loan | Varies — state deposits matching funds to participating lender to enable more affordable mortgage products | Yes | View → |
| RI Realtors Homebuyer Grant | Grant | $1,000 grant ($2,000 for veterans or active military) | Yes | View → |
| RI Statewide DPA Grant | Grant | $17,500 | Yes | View → |
| RIHousing 15kDPA | Deferred Loan | $15,000 | Yes | View → |
| RIHousing Extra Assistance | Forgivable Loan | Up to 6% of purchase price or $20,000, whichever is lower | Yes | View → |
| RIHousing Spring7500 | Forgivable Loan | $7,500 | Yes | View → |
- Type:
- Forgivable Loan
- Amount:
- $25,000
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Varies — state deposits matching funds to participating lender to enable more affordable mortgage products
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- $1,000 grant ($2,000 for veterans or active military)
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- $17,500
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- $15,000
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to 6% of purchase price or $20,000, whichever is lower
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- $7,500
- First-time only:
- Yes
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| South County Habitat for Humanity Homeownership Program | Zero-Interest Loan | Affordable mortgage with below-market interest rate on Habitat-built home | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage with below-market interest rate on Habitat-built home
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. RIHousing programs require household income at or below 80% AMI for Washington County. The WCCU FHLBB Mortgage Grant requires a minimum 620 credit score and $500 from your own funds.
Step 2: Complete homebuyer education. Take the Housing Network of Rhode Island's HUD-approved homebuyer education course, available in person, virtually, or online. Contact them at 401-721-5680. Homebuyer education is also required for the WCCU grant program.
Step 3: Contact Westerly Community Credit Union. WCCU offers FHLBB mortgage grants of up to $30,806 that can cover down payment, closing costs, and up to a 2% interest rate buydown. First-time buyer status is not required. Call them to discuss eligibility and current funding availability.
Step 4: Get pre-approved through an RIHousing-approved lender. To access state DPA programs like the 15kDPA ($15,000) or Extra Assistance (up to 6% of purchase price), you must use a participating RIHousing lender. You may be able to stack RIHousing DPA with the WCCU grant.
Step 5: Explore South County Habitat for Humanity. If you qualify for Habitat's homeownership program (income at or below 80% AMI), they are actively building affordable homes in Westerly with occupancy targeted for 2026. Contact them at their Charlestown office.
Step 6: Find a home and submit your application. RIHousing programs have purchase price limits that vary by county. Work with your lender to confirm Washington County limits and finalize your financing package.
Frequently Asked Questions
How much down payment assistance can I get in Westerly?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price I can pay using these programs?+−
What homebuyer education is required?+−
Is South County Habitat for Humanity building homes in Westerly?+−
What are the estimated closing costs for buying a home in Westerly?+−
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