First-home buyers in Oregon often encounter additional hurdles that repeat buyers might not have. For one thing, first-time buyers don’t have the proceeds from a previous home sale to put toward the down payment on their next purchase.
This is the #1 reason why so many first-time home buyers in Oregon struggle to make the jump into homeownership, even when they can afford the monthly payments.
The good news is that certain down payment programs can help first-time buyers overcome this upfront hurdle. And we’ll explore several of those Oregon housing programs in this guide.
Oregon down payment assistance (DPA) programs are designed to help first-time home buyers get over the biggest obstacle to homeownership. These programs offer several different kinds of financial assistance to eligible borrowers, making first-time homeownership in Oregon more attainable.
Most DPA programs in Oregon have specific eligibility requirements, including income limits, first-time buyer status, and a mandatory education course.
Next, let’s look at some specific programs available for first-time buyers in Oregon.
The Oregon Housing and Community Services (OHCS), a state agency, provides financial help to eligible home buyers by covering a portion of their down payment and closing costs.
This program makes homeownership more accessible for low- to moderate-income individuals and families. It’s actually funded by document recording fees, which are assessed by local agencies when people purchase homes in Oregon.
According to the OHCS official website:
“Homebuyers must be first-time and/or first-generation homebuyers at or below 100% of area median income. They must also complete First-Time Homebuyer Education and meet with a certified housing counselor to be eligible for down payment and/or closing cost assistance.”
Repayment terms and occupancy requirements can vary significantly depending on the Oregon assistance program being used. For example, Portland’s DPAL requires full repayment if the home is sold, the buyer moves out, refinances, transfers ownership, or pays down the main mortgage within the first 15 years. Under that program, 50% is forgiven at the end of year 15, with additional forgiveness in subsequent years, and no balance remains at year 30.
Gresham WELCOME HOME is a 0% interest deferred-payment loan that is forgiven in full at the end of 15 years, provided the home remains the buyer’s primary residence for the entire length of the loan. Statewide, OHCS DPA grant funds are reported to be fully forgiven after 5 years of owner-occupancy. OHCS Flex Lending may be structured either as a forgivable second lien with no payments and no interest, or as an amortizing second lien that requires regular repayment.
Other local and nonprofit programs have their own repayment structures. NeighborImpact’s DPA begins repayment immediately after closing as a fully amortizing loan with monthly principal and interest payments, and owner-occupancy must be maintained for the life of the DPA loan. DevNW’s DPA is structured as an interest-free loan repaid with shared appreciation upon the sale of the home or refinance of the first mortgage, with primary occupancy required during the loan term.
In addition to statewide help from OHCS, several Oregon cities and local organizations offer their own down payment and closing cost assistance programs. OHCS also distributes DPA funds competitively to local organizations statewide; in 2024, approximately $10 million was disbursed to 269 homebuyers, averaging $28,315 per buyer, for homes averaging $339,689.
The City of Portland offers a Down Payment Assistance Loan (DPAL) of up to $80,000 across the city or $100,000 in certain targeted areas. This assistance is structured as a 30-year, 0% interest second mortgage with no monthly payments for households at or below 100% of Portland’s AMI.
The City of Gresham’s WELCOME HOME program provides $10,000–$40,000 in down payment and closing cost assistance as a 0% interest deferred-payment loan forgiven at the end of 15 years. It is funded by the federal HOME Investment Partnerships Program (HUD), and the purchase price cap is $499,000 for closings on or after April 1, 2026.
The City of Corvallis offers zero-interest down payment and closing cost loans of up to $20,000 for low-income first-time homebuyers purchasing within Corvallis city limits. The City of Springfield offers the Springfield Home Ownership Program (SHOP), which provides loans of up to $7,000 toward the down payment and related costs, structured as interest-free and deferred until the home is sold or transferred.
Fannie Mae and Freddie Mac also have programs geared toward first-time buyers, both of which allow for a down payment as low as 3%. So let’s look at those next.
Fannie Mae is one of the government-sponsored enterprises that buy loans from lenders, securitize them, and sell them to investors. Freddie Mac is the other “GSE.”
Fannie offers a low down payment mortgage program for first-time home buyers in Oregon and nationwide. It allows eligible borrowers to finance up to 97% of the home’s purchase price, for a down payment as low as 3%.
Unlike similar programs, Fannie Mae’s 97% LTV program does not impose any income limits or restrictions. So you don’t have to be a low- or moderate-income home buyer.
At least one borrower on the loan has to be a first-time buyer. But their definition of “first time” is fairly broad. They define it as a person who has not “owned any residential property in the past three years.”
Here’s how Fannie Mae clarifies the difference between their 3% down programs:
“Our HomeReady mortgage does not require that borrowers be first-time home buyers. Fannie Mae standard transactions using 97% LTV financing, however, must have at least one borrower who is a first-time home buyer.”
To be clear, the HomeReady mortgage in Oregon does not provide down payment assistance in the form of a grant or forgivable loan, like a true DPA program. But it does allow first-time buyers to make a purchase with less money down, essentially accelerating the timetable.
Freddie Mac (the other government-sponsored enterprise) offers a mortgage program that’s nearly identical to the Fannie Mae program mentioned above. It’s called “HomeOne.”
Once again, there are no income restrictions. So you do not have to be a low- or moderate-income borrower to qualify for the HomeOne program in Oregon. But there is a first-time buyer requirement.
At least one borrower has to be a first-time buyer, meaning they have not owned a house during the three-year period preceding the purchase date.
Additionally, if all of the borrowers named on the loan are first-time buyers (as defined above), at least one of them must complete an approved home buying education course.
Many first-time home buyers use FHA loans in Oregon to finance their purchases. This program is not limited to first-time buyers, but it supports this audience by allowing for a down payment as low as 3.5% of the purchase price.
Understanding Oregon first-time buyer programs can help make purchasing your first home more accessible. If you need assistance navigating the mortgage options available to you in Oregon, be sure to reach out to your local mortgage specialist.
Some Oregon assistance programs can be combined, but each one has its own income limits and compatibility requirements. OHCS Flex Lending, which provides 4–5% of the first mortgage amount, can be paired with local programs such as Portland’s DPAL, the Gresham WELCOME HOME program, or the DevNW no-interest loan. OHCS Flex Lending is specifically designed to be paired with down payment assistance to cover up to 100% of closing costs, and it combines a fixed-rate first mortgage with either a forgivable silent second lien or an amortizing second lien.
Other programs also have their own rules for compatibility. NeighborImpact’s DPA loan may be used with eligible first-time homebuyer and low-to-moderate income loan programs such as the Oregon Bond Program, but it cannot be used with interest-only loans. Veterans may be able to stack both the Oregon Department of Veterans’ Affairs (ODVA) Home Loan and OHCS DPA, and OHCS reserves 25% of its DPA funds specifically for Oregon veterans and their families.
National loan programs such as FHA, VA, and USDA can be layered with many Oregon-based assistance programs. Because eligibility and compatibility vary by program, stacking eligibility confirmation with an OHCS-approved lender is required before applying.
If you’re looking to buy in Oregon, we can help. At Sammamish Mortgage, we offer various mortgage options for you to choose from, and assist clients across Oregon, Idaho, Colorado, Washington, and California. Visit our website to get an instant rate quote or call us today if you would like to learn more about the different down payment strategies available in Oregon.
Common Oregon assistance options include grants, second mortgages, forgivable loans, matched savings programs, and tax credits. Availability and eligibility vary by program and location.
OHCS assistance is generally aimed at first-time and/or first-generation home buyers who are at or below 100% of area median income, complete a homebuyer education course, and meet with a certified housing counselor.
Many Oregon down payment assistance programs have income limits. For the OHCS program discussed here, eligibility is generally limited to buyers at or below 100% of the area median income, with limits varying by county.
Many assistance programs require homebuyer education. OHCS commonly requires education and counseling, and Freddie Mac HomeOne may require education when all borrowers are first-time buyers.
It is typically offered as a second mortgage loan that can be used for down payment and closing costs, though program terms can vary by participating organization.
It is a conventional mortgage program that allows eligible buyers to finance up to 97% of the purchase price, which means a down payment as low as 3%.
No. The Standard 97% LTV program does not impose income limits, but at least one borrower must be a first-time home buyer.
HomeOne is a conventional low-down-payment mortgage program that is similar to Fannie Mae’s 97% LTV option. It has no income restrictions, but at least one borrower must be a first-time buyer.
For these programs, a first-time buyer is generally someone who has not owned a residential property during the past three years.
Yes. FHA loans are widely used by first-time buyers because they allow a down payment as low as 3.5% of the purchase price, even though the program is not limited to first-time buyers.
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