Wondering how much money you need to buy a home in Rhode Island? You’re not alone. With so much outdated information—and even more unsolicited advice from well-meaning family and friends—it’s no surprise that many buyers are confused about what it actually takes to become a homeowner in today’s market.

At the Slocum Home Team, we believe in arming buyers with facts—not myths. Whether you’re looking to buy in Warwick, East Greenwich, Cranston, Coventry, North Kingstown, or Providence, understanding your financing options and down payment requirements is a critical first step.

Let’s break it down.

Do You Need 20% Down to Buy a Home?

Short answer? No.

Despite what your uncle may have told you, most first-time buyers in Rhode Island and beyond do not put 20% down. In fact, according to the National Association of REALTORS®, the average down payment for first-time buyers has ranged from 6% to 9% since 2018.

Historically, that number has never even reached 10% going back to 1989. The idea that 20% is required is simply a myth that keeps too many would-be homeowners on the sidelines.

For repeat buyers, the average is higher—about 23% in 2024. But that’s often because they’ve built up equity from a previous home sale.

What Are the Most Common Loan Types for RI Buyers?

Here in Central Rhode Island, most buyers use conventional loans. But there are great alternatives—especially for first-time or lower down payment buyers:

• FHA Loans: Require just 3.5% down. Used by 29% of first-time buyers.

• VA Loans: Require 0% down for eligible veterans. Used by 9% of first-time buyers.

• Conventional Loans with PMI: As little as 3% down, though you’ll pay private mortgage insurance until you reach 20% equity.

Tip: If you’re not sure which loan program is right for you, talk to a lender—or reach out to Nick Slocum or one of the Slocum Home Team’s top agents. We’ll connect you with trusted mortgage partners who can walk you through your options in detail.

So Where Does the Down Payment Come From?

Most Rhode Island buyers lean on personal savings. But there are other sources too:

• 69% of first-time buyers use their savings

• 25% use a gift from a family member

• 21% pull from retirement accounts (401k, IRA), stocks, or even cryptocurrency

• 7% use an inheritance—the highest rate on record

It’s also becoming more common for buyers to use multiple sources to gather the necessary funds. This is especially true in areas like Warwick and East Greenwich, where prices have risen in recent years.

What If I Don’t Have Enough Saved?

That’s where down payment assistance programs come in.

Rhode Island Housing offers various statewide options, and there are additional city-specific grants and forgivable loans that may be available. A resource like DownPaymentResource.com can help you find local programs, or you can talk to a knowledgeable Warwick Realtor like Nick Slocum for guidance.

These programs aren’t just for low-income buyers. Many are available to middle-class homebuyers who meet credit and occupancy guidelines.

Let’s Talk About Misconceptions

According to a recent NAR survey, 97% of REALTORS® said their clients rely on family advice about financing—even though those family members won’t be paying the mortgage or living in the house.

The reality is this:

• Most first-time buyers don’t need 20% down.

• There are more loan options than ever.

• There are resources available—you just need to know where to look.

That’s why working with an experienced team like the Slocum Home Team can make all the difference. We’ve helped hundreds of buyers navigate the Rhode Island real estate market with confidence, clarity, and a plan.

Why Are Today’s Buyers Still Struggling?

A new national study found that financial barriers still dominate the path to homeownership:

• 33% of would-be buyers said their biggest challenge is saving for a down payment

• 29% cited monthly affordability

• 22% mentioned economic uncertainty as a top concernO

Add to that the rising cost of rent in Rhode Island—especially in Providence and Cranston—and you can see how hard it is to save while renting.

This is where having a plan matters.

Your Strategy: Start with a Buyer Consultation

At the Slocum Home Team, we’ve created a guided, 8-step home buying process that takes the fear and guesswork out of the equation. From pre-approval to negotiation and closing, our agents walk with you every step of the wayBuyers 25 Working 2.13.….

Our buyers don’t just get access to listings—they get:

• Mortgage referrals tailored to your situation

• Down payment assistance program guidance

• Support reviewing offers, contingencies, and local market stats

• A proven team behind every step of the journey

Final Thoughts: You Don’t Need to Do This Alone

Whether you're buying your first home in Warwick or upgrading in East Greenwich, the most important thing to remember is this: you don’t need to save 20%, and you don’t need to figure it out alone.

The Slocum Home Team is here to help you make informed decisions and reach your real estate goals.

Ready to Buy in Rhode Island?

Let’s have a conversation. Contact Nick Slocum or one of our experienced local agents today and we’ll help you:

• Understand your down payment options

• Create a personalized plan

• Make confident, informed decisions

Let’s turn your dream of homeownership into a reality—right here in Rhode Island.