Oregon first-time homebuyer assistance programs
Whether you’re a lifelong Oregonian or a recent transplant, setting down permanent roots there can feel tough for first-time homebuyers. As of January 2025, the state’s median home sale price was $508,100, an increase of 5 percent year-over-year and well above the national median, according to Redfin. While finding an affordable home in Oregon can be challenging, you don’t have to do it on your own, thanks to assistance from Oregon Housing and Community Services (OHCS) and other organizations across the state.
Oregon first-time homebuyer loan programs
Oregon Bond Residential Home Loan Program
The Oregon Bond Residential Home Loan Program offers a selection of low-rate mortgages — including conventional, FHA, VA and USDA loans — with two assistance options for first-time homebuyers:
- Cash Advantage: The Cash Advantage option includes a below-market rate mortgage and 3 percent of the loan amount toward closing costs. (Note the 3 percent can’t go toward the down payment.)
- Rate Advantage: The Rate Advantage option also includes a below-market mortgage rate — even lower than the Cash Advantage rate and significantly lower than current average mortgage rates — but no cash assistance.
The Oregon Bond Residential Loan is also available to repeat homebuyers if the buyer is a veteran or purchasing in a specific target area.
Oregon down payment assistance and grants
OHCS Flex Lending Program
Although loans through the Bond Program don’t offer down payment assistance, OHCS does have two mortgage options that do:
- FirstHome: This program is geared toward first-time homebuyers. Qualification is subject to income limits and purchase price limits.
- NextStep: This program is open to all homebuyers making $125,000 per year or less. There is no purchase price limit.
Eligible borrowers can receive either 4 percent or 5 percent of their first mortgage as another loan to cover down payment and closing costs. Borrowers who earn 80 percent or less of their area median income (AMI) can eventually have the loan forgiven. Moderate-income borrowers will repay the loan in monthly installments; the interest rate will be 1 percent higher than the interest rate on the first mortgage.
City-specific homebuyer assistance programs
Down Payment Assistance Loan Program
The Down Payment Assistance Loan (DPAL) provides down payment assistance to first-time homebuyers who are purchasing a home in Portland. Eligible borrowers can receive up to $80,000 to $100,000, depending on the funding source and home location, in the form of a 0-percent interest loan. The loan interest payments are deferred, and after 15 years, eligible borrowers can apply for loan forgiveness.
Springfield Down Payment Assistance
Offered by DevNW, this program for first-time homebuyers offers a no-interest loan of up to $25,000 toward a down payment or closing costs. The loan is not forgivable, however; you must pay the entire amount back when selling or refinancing the mortgage.
Other Oregon homebuyer assistance programs
Along with the Flex Lending program, OHCS works with local organizations throughout the state to help buyers pay down payment and closing costs. Here’s a look at some of the most widely available assistance programs.
ACCESS: Jackson and Josephine Counties
Qualified, first-time homebuyers who can contribute at least $500 of their own money might be able to secure a $2,500 grant to cover a down payment or closing costs. This grant does not need to be repaid. You’ll need to attend a homebuyer education course.
Portland Housing Center: Multnomah, Washington, Clackamas, Yamhill and Columbia Counties
Through the Portland Housing Center, first-time buyers earning 80 percent or less of the AMI can qualify for a low-rate loan of up to $80,000 to cover down payment and closing costs. There is also an IDA (Individual Development Account) program that offers a $5 match for every $1 saved toward a down payment.
Community Connection of Northeast Oregon: Baker, Grant, Union and Wallowa Counties
The Community Connection of Northeast Oregon offers an IDA for first-time homebuyers that matches every $1 you save for a down payment with $5.
Many of these down payment assistance programs have certain requirements, such as income limits, a homebuyer education requirement or a minimum buyer contribution. Here is a complete list of organizations offering down payment assistance in Oregon.
Other Oregon first-time homebuyer loans
If you’re buying a home in Oregon, make sure you consider some of the nationally available home-lending options, including:
- FHA loans: Applicants with a credit score of at least 580 can put only 3.5 percent of the purchase price down with an FHA loan.
- VA loans: If you’re a qualifying service member, veteran or eligible spouse, VA loans come with a few huge benefits: no mortgage insurance requirement, typically no down payment requirement and some of the most competitive interest rates available.
- USDA loans: If you’re buying in a qualifying rural area (check to see if your property fits the bill), USDA loans are worth a look. You don’t need to make a down payment.
Get started
- Research the market: Before you begin house-hunting in Oregon, research the state’s housing market. This can help you understand where you might afford to buy — and where you might be able to qualify for extra down payment assistance.
- Learn more about first-time buyer programs: Use the Oregon Housing and Community Services department as a resource to learn about the state’s first-time homebuyer loan and down payment assistance programs.
- Read reviews of Oregon mortgage lenders: Before you apply for preapproval, read reviews of mortgage lenders in Oregon to see which are most likely to meet your needs. Consider factors like branch locations, customer service and average closing times.
- Shop around for mortgage rates: It’s a good idea to compare Oregon mortgage rates from multiple lenders to ensure you receive the most competitive loan. Ask your real estate agent for advice, too; they have experience helping first-time buyers navigate the process.
- Look for homeowners insurance: When you buy a house in Oregon, you’ll need to get homeowners insurance. There are dozens of reputable homeowners insurance companies in Oregon, but you should compare insurers based on factors like coverage options, discounts, online and mobile tools and customer support. You can get quotes from a few different carriers to find the best coverage at the lowest price.
