Although interest rates are on the rise, it's still a great time to purchase a home. Speak with one of our expert loan officers today!

Blue Water Mortgage is rated one of the best mortgage companies in Rhode Island. Our experienced team is here to help you every step of the way. On this page, you’ll find common considerations for home buyers in Rhode Island.

Rhode Island Mortgage Programs

What to Know Before Buying a Home in Rhode Island

Although buying a home is an exciting step, it can be challenging to navigate the housing market and align your finances. The purchasing and offer process varies from state to state, which is why it’s important to work with a mortgage lender that has experience across multiple states. Here are some of the differences to be aware of when shopping for a home in Rhode Island.

Property Types Vary Greatly

When it comes to homes in Rhode Island, the property types available can vary greatly depending on geographical region. Along the coast, beachfront cottages and luxury condos are popular choices for those looking for a home with a water view. Cape Cod-style houses are also abundant in the coastal regions. In contrast, historic, colonial homes are more prevalent in the older, established neighborhoods of the state’s capital Providence and other cities.

In the more rural areas of the state, you’ll find a mix of traditional farmhouses and newer single-family homes. Overall, the diversity of home styles and types available in Rhode Island ensures that there is something for every home buyer to choose from, depending on their preferences and location. Our Rhode Island mortgage lenders have the knowledge and experience to help you find the home that fits you best.

Know Rhode Island Tax Rules

In Rhode Island, the state property tax rate is set at 1.22% of the property’s assessed value. The state also has a conveyance tax, which amounts to 1.5% of the sales price of the property and is charged by the state when a property changes hands.

Additionally, Rhode Island has a mortgage recording tax, which is a one-time fee paid when a mortgage is recorded. The fee is calculated at 0.25% of the mortgage amount. The Ocean State also has a Homestead Act, which allows homeowners to claim a $25,000 exemption on their primary residence, which can help lower the property tax.

Rhode Island Is a Title State

A notary may preside over a closing in place of an attorney in Rhode Island, which can help lower the overall closing costs.

Beware of Lead Paint

Rhode Island has a Lead Paint Disclosure Law, which requires sellers to disclose the presence of lead-based paint in any housing built prior to 1978. Per this law, sellers must fill out and provide buyers with lead paint disclosure forms and informational pamphlets.

Why Getting a Mortgage in Rhode Island Makes Sense

Rhode Island, the smallest state in the country, offers a unique blend of history, culture and natural beauty that make it an attractive place to call home. Whether you’re a first-time home buyer or looking for your dream home, getting a mortgage in the Ocean State makes sense for a variety of reasons.

First, Rhode Island’s location on the East Coast makes it a prime spot for those who love the ocean. The state boasts over 400 miles of coastline and a diverse array of waterfront properties, from historic beach cottages to modern condos with stunning views.

Additionally, Rhode Island has a rich history and culture that is reflected in its architecture and neighborhoods. The state’s capital, Providence, and the city of Newport are home to numerous historic homes and Gilded Age mansions, many of which have been beautifully preserved and maintained. These areas offer a unique blend of old-world charm and modern amenities that are highly sought after by home buyers.

Another factor that makes Rhode Island a great place to call home is its diverse and welcoming communities. The state is home to a wide variety of people from different backgrounds and cultures, making it a great place to raise a family or enjoy a vibrant social scene.

Finally, Rhode Island offers a wide range of housing options that cater to different budgets, lifestyles and preferences. From single-family homes to condos, townhouses and apartments, the state has something to offer everyone.

Overall, Rhode Island’s unique blend of natural beauty, history, culture and diverse communities make it an attractive place to call home. And with a variety of housing options, getting a mortgage in Rhode Island makes sense for anyone looking for a place to call their own. Our Rhode Island mortgage lenders are ready to help you navigate the home buying process as seamlessly as possible.

Rhode Island Products and Programs

No matter which program you choose to explore, Blue Water Mortgage is proud to provide timely communication, expert advice and the personal touch of a local, owner-operated brokerage. With over 150 years of collective credit-based mortgage experience, we have the knowledge to find the best Rhode Island mortgage for you — your dream home is within reach. Let’s get started.

  • RIHousing 10kDPA Program – Provides $10,000 in down payment assistance as a loan to first-time home buyers in Rhode Island
  • RIHousing Extra Assistance Program – Provides down payment assistance to eligible first-time home buyers in Rhode Island
  • FirstGenHomeRI – Enables first-generation home buyers to receive $35,000 in down payment and/or closing cost assistance

Common Loans

Fixed-Rate – Fixed Rate mortgage loans are predictable payments because they maintain a fixed interest rate for the entire life of the loan, as opposed to loans where the interest rate may be adjusted.

Refinancing – When homeowners take out a new home loan to replace their existing one (to help reduce monthly payments and gain long-term savings), the new loan pays off the initial loan.

First Time Home Buyers – We’re happy to help guide you through a transparent and predictable mortgage process.

Conventional Mortgage Loans in NH – Conventional loans are the most common, private-sector loans that are not government-backed but follow guidelines set by Fannie Mae and Freddie Mac.

Non-Conventional – These loans cater to borrowers who may have been declined for a conventional loan due to self-employment, bankruptcy or unsteady employment history.

Adjustable Rate – This mortgage has an adjustable interest rate, which might allow a buyer to start with a lower monthly payment.

Low Down Payment & Government Loans

Low Down Payment — These government-backed loans only require a 3.5% down payment, even for borrowers with less-than-perfect credit.

FHA — These loans are more forgiving for people with lower credit scores — and are designed to help borrowers who might not qualify for conventional loans.

FHA 203K — This government loan is flexible for fixing up homes with deferred maintenance.

VA — Veterans mortgages are similar to a conventional loan, but with specific benefits for veterans such as no down payment, no cash reserves and no application fee.

USDA — These rural home loans have low rates, no down payment and are designed for borrowers who purchase homes in communities of fewer than 20,000 people.

Home Loans for Bad Credit – Clear lingering credit history issues and discover a mortgage option that suits your financial situation.

Additional Loans

Jumbo — A Jumbo loan is a mortgage exceeding the conforming lending limit of Fannie Mae or Freddie Mac, which in most areas is $417,000.

Non-Owner Occupied — If you are purchasing a property that will not be your primary residence with between one and four units, you may face more red tape since it has a higher risk of default.

HELOC — A home equity line of credit, often thought of as a second mortgage, allows the dispersal of the loaned funds at any time the borrower chooses, instead of all at once like a traditional mortgage.

Home Improvement — Whether you’re looking to renovate, remodel or increase the value of your home, this program can help get the job done.

Police & Firefighters — Serving as a first responder in the community can help secure optimal terms on a home mortgage loan.

Why Blue Water Mortgage?
No Surprises
No Surprises
With over 150 years of collective experience, our mortgage brokers have seen it all. This level of expertise enables us to anticipate and quickly resolve any issues that might arise and close on time, every time.
Personalized Services
Personalized Services
Buying a home is one of the biggest purchases you’ll make in your entire life. That’s why our brokers are available via phone 24/7 to address any concerns or answer any questions you might have about the mortgage process.
Competitive Rates
Competitive Rates
Blue Water is locally owned, so we aren’t beholden to banks. That means we’re able to offer a more diverse portfolio of mortgage products tailored to your specific needs, as well as more competitive rates and lower closing costs.
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