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Homebuyer Programs in Westerly, RI (2026)

Last updated April 3, 2026 | Population: 23,333 | Median home price: $520,000 | Est. closing costs: $10,500 - $15,500

Skyline of Westerly, RI

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.

Top Homebuyer Programs in Westerly

WCCU FHLBB Mortgage Grant
Type:
Grant
Amount:
Up to $30,806
First-time only:
No
FHA Loans
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
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
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
HomeReady Mortgage (Fannie Mae)
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
HUD $100 Down Program
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
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
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
South County Habitat for Humanity Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable mortgage with below-market interest rate on Habitat-built home
First-time only:
No
FirstGenHomeRI
Type:
Forgivable Loan
Amount:
$25,000
First-time only:
Yes
RI AnchorHome
Type:
Zero-Interest Loan
Amount:
Varies — state deposits matching funds to participating lender to enable more affordable mortgage products
First-time only:
Yes
RI Realtors Homebuyer Grant
Type:
Grant
Amount:
$1,000 grant ($2,000 for veterans or active military)
First-time only:
Yes
RI Statewide DPA Grant
Type:
Grant
Amount:
$17,500
First-time only:
Yes
RIHousing 15kDPA
Type:
Deferred Loan
Amount:
$15,000
First-time only:
Yes
RIHousing Extra Assistance
Type:
Forgivable Loan
Amount:
Up to 6% of purchase price or $20,000, whichever is lower
First-time only:
Yes
RIHousing Spring7500
Type:
Forgivable Loan
Amount:
$7,500
First-time only:
Yes

How to Apply

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

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