Rhode Island Housing on Friday announced two new loan programs, one that offers up to $7,500 in down-payment assistance for first-time home buyers in six communities, and a statewide program that offers refinance loans with up to $75,000 in principal forgiveness to homeowners who still have “underwater” mortgages.
“Underwater” home owners owe more than the current market value of their property, a situation that often makes refinancing to take advantage of lower interest rates impossible.