PROVIDENCE – A new Rhode Island homeownership pilot program will expand access to “affordable, sustainable mortgage options” for first-time buyers, state officials say.
Rhode Island General Treasurer James A. Diossa on Thursday announced the launch of “RI AnchorHome,” telling reporters the initiative will allow qualifying families in search of a primary residence in the Ocean State to obtain 30-year fixed-rate mortgages with a starting interest rate of 3.99 percent.
The program comes as Rhode Island, like many states, has struggled to slow the rising cost of housing. In October, the median sale price of a single-family home reached $505,000, while multi-family home sales prices reached a new high of $600,000, according to data released last month by the Rhode Island Association of Realtors.
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At a press conference on Thursday, Diossa said the new homebuyer program is not a solution to the housing crisis, but he believes “it is an important step in the right direction.”
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“It helps families put down roots, stabilize neighborhoods, [and] keep capital circulating in our state,” Diossa said.
The effort will allow the state to deploy up to $60 million through its Community Deposit Program to back up mortgages issued by Navigant Credit Union, Centreville Bank, and BankNewport, according to Diossa, who said the state will not act as a lender through RI AnchorHome.
“The Community Deposit Program is overseen by the state’s Investment Commission,” Diossa said. “All deposits are fully collateralized. Mortgages are held by the bank. We offset the debt with our bank deposit, and they prioritize safety, liquidity, and security, and these funds are reviewed annually, and they must meet strict financial and reporting standards.”
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The Investment Commission approved the program unanimously on Wednesday, officials said.
To qualify for the program, an applicant must be a first-time homebuyer purchasing a primary, owner-occupied residence in Rhode Island while seeking a mortgage through one of the participating banks or credit unions, Diossa said.
Applicants must have a minimum credit score of 660, a maximum debt-to-income ratio of 50 percent, and their household income is limited to up to 110 percent of the Rhode Island median household income, Diossa said.
The state’s median household income is $86,372, according to the 2025 Housing Fact Book, the annual report released in October by HousingWorks RI at Roger Williams University.
According to officials, benefits of the program include no required private mortgage insurance, support for down payments and closing cost assistance, and a starting fixed interest rate of 3.99 percent that is “subject to market conditions.”
“The interest rate for all homebuyers using the RI AnchorHome program is 3.99 percent,” Grace Voll, a spokesperson for Diossa’s office, wrote in an email on Friday.
“Treasury’s Cash Management team will meet quarterly with all participating institutions to review this rate. If market mortgage rates decrease, Treasury will consider lowering the RI AnchorHome rate,” Voll added. “If mortgage rates increase, the program rate may also need to rise to remain viable for participating banks and credit unions.”
Lee Merrill, Centreville Bank’s chief lending officer, called the effort “a very unique program” that he hopes is modeled by other states.
“Homeowners are more likely to invest locally, support local small businesses, and contribute to the health and vibrancy of their communities,” Merrill told reporters on Thursday. “When our customers succeed, our communities succeed, Rhode Island succeeds.”
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Christopher Gavin can be reached at christopher.gavin@globe.com.
R.I. launches launches first
