First-Time Home Buyer Programs in Oregon

Oregon Housing and Community Services (OHCS) Programs:

Flex Lending (FirstHome & NextStep):

Eligibility: First-time homebuyers (FirstHome) or repeat buyers (NextStep), veterans included.
Offerings: 30‑year fixed‑rate mortgage with below‑market rates; paired with down payment assistance (DPA).
Requirements:

• Income limits vary by county; cap at approximately $125,000 statewide Source: reviewmymortgage.com.
• Minimum credit score of 620 .
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required for first-time buyers.
• Purchase price limits aligned with OHCS targeted vs non-targeted areas.

Oregon Bond Residential Loan Program (phasing out):

Description: Previously offered Rate Advantage and Cash Advantage loans—still available until fully phased into FirstHome option .

Down Payment Assistance (DPA):

Benefits: Up to 4–5% of the loan amount as a deferred second mortgage; grants are available via local nonprofit partners (up to $60,000 or 20% of purchase price) .

Local Programs:

Portland

Portland Down Payment Assistance: Up to $40,000 deferred loan (0% interest, due upon sale/refinance); income ≤ 80% AMI ($77,350 for family of four).

Salem

Salem First-Time Homebuyer Program: Up to $15,000 forgivable loan (after 10 years); income ≤ 80% AMI; workforce housing target.

Eugene

Eugene Homebuyer Assistance: Up to $12,000 0% deferred loan (due upon sale); income ≤ 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): Up to 20% tax credit on mortgage interest (max $2,000 annually); fee applies; combinable with OHCS loans.
• FHA Loans: 3.5% down; credit scores as low as 580 (10% down if below 580).
• USDA Loans: Zero-down for rural areas; income limits apply.
• VA Loans: Zero-down for eligible veterans/active military.