Down Payment Assistance Programs for First-Time Homebuyers in Oregon

Oregon, the “Beaver State,” is the 9^th-largest and the 27^th-most populated state in America. But that isn’t the only thing it’s famous for! Gorgeous coastlines, majestic mountains, vibrant cities, and nightlife that never stops – these things make visitors drawn to Oregon. If you like outdoor activities (skiing or hiking), you have Crater Lake and Columbia River Gorge. Local theaters and galleries capture the attention of art lovers from all over the US, while breweries in the Willamette Valley keep tourists coming for seconds.

However, Oregon has one drawback that disappoints potential homebuyers, i.e., fewer cheap homes. In fact, Beaver State is experiencing a significant housing shortage. It’ll need 555,000+ housing units in the next two decades. At the current construction progress rate, Oregon will see 36,000 new homes per year for first-time buyers. So, how can you become a homeowner in this devastating economy?

The local government has certain down payment assistance programs in place. These programs make it easier for low-to-moderate-income individuals to afford housing units in Oregon. Homebuyers get loans to pay off a new property’s down payment and closing costs without significant financial problems.

Looking for Assistance in a Specific Part of Oregon?

This page gives an overview of the assistance programs available to first-time homebuyers in Oregon. It’ll cover statewide and local resources. For specific information on down payment assistance in your area, refer to the local resource provided here:

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Down Payment Assistance in Oregon

Compared to other states, house prices in Oregon barely rose by 2% in the last 12 months. However, the median home price in the Beaver State already stands at a whopping $521,000! That’s why Oregon has a lot of down payment assistance programs for potential homeowners.

However, you can leverage numerous down payment assistance programs to own a home in Oregon. Stairs Financial offers insights into some of these affordable housing programs. Locals can use this info to choose the ideal financial assistance option.

Oregon Housing and Community Services Flex Lending Program

As per the Oregon Housing and Community Services (OHCS) Flex Lending Program, homebuyers receive funds in the form of loans or grants to own a house. This program covers 20% of the down payment and closing cost of your potential new home if you stand eligible for receiving these funds.

Fundamentals

• Assistance type: Second mortgages (silent forgivable or amortizing repayable)
• Sponsor: Oregon Housing and Community Services (OHCS)
• Assistance amount: $60,000 (or 20% of the purchasing price)

Eligibility requirements

• The maximum income limit for this program is $125,000 (only the borrower’s).
• Homebuyers must have a credit score of 620 when applying for the loan.
• Eligible properties include single-family homes, townhomes, condominiums, etc.
• The borrower must finish homebuyer education and meet with a certified housing counselor.

Portland Housing Center

The Portland Housing Center programs give first-time homebuyers enough funds to buy a home in select counties, such as Multnomah, Washington, Clackamas, Yamhill, and Columbia. This program also offers an IDA (Individual Development Account) program that matches $5 for every $1 saved towards a down payment.

Fundamentals

• Assistance type: First and second mortgage loans
• Sponsor: Portland Housing Center
• Assistance amount: $80,000

Eligibility requirements

• The borrower’s household income must be under 140% of the area median income (AMI).
• Completing a HUD-approved homebuyer education course is mandatory.
• The homebuyer should maintain a credit score of 620.
• The buyer must not own another property at the time of applying.

ACCESS: Jackson and Josephine Counties

If you have at least $500 to make the down payment on your house, you can get this grant (and no need to pay it back) from ACCESS to purchase a property in Jackson and Josephine Counties. ACCESS describes itself as a “community action agency” for these two counties. It aims to help low-income individuals get a house without the down payment overburdening them financially.

Fundamentals

• Assistance type: Grant
• Sponsor: Community Action Agency of Jackson County
• Assistance amount: $2,500

Eligibility requirements

• The grant receiver should be a low-to-moderate income earner.
• The grant is to purchase a home in Jackson and Josephine Counties.
• The homebuyer must contribute at least $500 toward the down payment.
• The buyer has to participate in homebuyer education programs before closing the deal.

Oregon Down Payment Assistance Program FAQs

Here are some common questions from first-time homebuyers in Oregon looking for financial assistance with down payments:

1.  Do you qualify for down payment assistance in the state of Oregon?

A homebuyer’s eligibility depends on the nature of the program. However, most programs offering loans to Oregon-based homebuyers require that the borrower didn’t own a house in the past 3 years, meets a set income limit (80% of the AMI, at max), finishes homebuyer education courses, and makes that house their primary residence.

2.  How much financial assistance can you receive?

The nature of the program and the identity of the sponsor will determine how much financial assistance a homebuyer can receive. Some programs offer grants of up to $25,000, while others provide easy loans of amounts that go as high as $80,000.

3.  Where can you find down payment assistance programs in Oregon?

Homebuyers can check with the Oregon Housing and Community Services (OHCS) and local government websites to find financial assistance programs. Many cities have separate programs as well. You must do due diligence before choosing the perfect down assistance program in Oregon.

4.  Can you get Biden first-time homebuyer assistance in a place like Oregon?

The Biden administration has proposed this program that’ll give first-time homebuyers a tax credit of up to $15,000. However, it’s still pending and isn’t available in Oregon or another state.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.

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