First-Time Home Buyer Programs in Oregon

Oregon Housing and Community Services (OHCS) Programs:

Residential Loan Program:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years) or buyers in targeted areas.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with below-market rates; can be paired with down payment assistance.
Requirements:

• Income must not exceed county-specific limits (e.g., $135,000 for a 1-2 person household in Multnomah County as of 2025).
• Minimum credit score of 620 (varies by loan type).
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required.
• Purchase price limit of $510,400 (non-targeted areas) or $623,600 (targeted areas).

Oregon Bond Down Payment Assistance:

Benefits: Offers up to 4% of the loan amount (e.g., $8,000 on a $200,000 mortgage) as a 0% interest deferred loan (repayable upon sale or refinance); available with Residential Loan Program.
Eligibility: Must use an OHCS first mortgage; income and purchase price limits apply (same as Residential Loan Program).

Veterans’ Loan Program:

Description: Provides a 30-year fixed-rate mortgage with reduced rates for veterans, active-duty military, or reservists; combinable with down payment assistance.
Requirements: Must meet Residential Loan Program criteria; proof of military service required (e.g., DD-214 or active-duty ID); credit score of 620.

Local Programs:

Portland

Portland Down Payment Assistance: Offers up to $40,000 as a deferred loan (0% interest, due upon sale or refinance) for down payment and closing costs; income must be at or below 80% AMI (e.g., $77,350 for a family of four).

Salem

Salem First-Time Homebuyer Program: Provides up to $15,000 as a forgivable loan (forgiven after 10 years) for down payment and closing costs; income capped at 80% AMI; targets workforce housing.

Eugene

Eugene Homebuyer Assistance: Offers up to $12,000 as a 0% interest deferred loan (repayable upon sale) for down payment and closing costs; income must be below 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 20% of annual mortgage interest (max $2,000 yearly) for first-time buyers; fee applies; combinable with OHCS loans.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural Oregon areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.