Best First-Time Homebuyer Programs in Oregon

If you’re a first-time homebuyer, you might be feeling overwhelmed by all the steps and requirements that go into purchasing your first home. Fortunately, you can consider several first-time homebuyer programs in Oregon. These programs can help make purchasing your first home more affordable. From down payment assistance loans to special government-backed loans, here are some options for you to evaluate. 

Quick Look: Best First-Time Homebuyer Programs in Oregon

• Best for Competitive Interest Rates: Oregon Bond Residential Loan
• Best for Flexible Options: OHCS Flex Lending Program
• Best for Support: Portland Housing Center
• Best for Free Education: Community Connection of Northeast Oregon
• Best for Forgivable Down Payment Assistance: NeighborWorks Umpqua Veterans Down Payment Assistance
• Best for Down Payment Assistance Loans: NeighborImpact Down Payment Assistance 
• Best for Closing Cost Assistance: Oregon Housing Down Payment Assistance

Best First-Time Homebuyer Programs in Oregon

There are several first-time homebuyer programs in Oregon. Some provide grants while others help you get lower interest rates and help with closing costs. Here are the best programs currently available.

Best for Competitive Interest Rates: Oregon Bond Residential Loan

The Oregon Bond Residential Loan Program offers two options.

Rate Advantage Home Loan:  Offers a competitive interest rate as well as a lower monthly payment to help maximize the borrower’s buying power. 

Cash Advantage Home Loan: Offers a competitive interest rate on the loan as well as cash assistance equal to 3% of the borrower’s loan amount. 

• Credit score: No minimum credit score requirement
• Income limit: Varies by county
• Loan limit: Between $481,176 and $838,182

Best for Flexible Options: OHCS Flex Lending Program

The OHCS Flex Lending Program provides down payment and closing cost assistance for low-to-moderate-income borrowers. Borrowers can receive an amount that is equal to 4% or 5% of their mortgage loan through this program. They can also combine this program with other down payment assistance programs. 

• Credit score: 620
• Income limit: $125,000
• Loan limit: 5% of first mortgage loan amount

Best for Support: Portland Housing Center

Portland Housing Center helps first-time homebuyers in a few ways. It is a resource that can provide homebuyer education and one-on-one counseling to help people make a path to homeownership. It also provides mortgages, down payment and closing cost assistance and savings matching programs. 

• Credit score: N/A
• Income limit: N/A
• Loan limit: N/A

Best for Free Education: Community Connection of Northeast Oregon

Community Connection of Northeast Oregon’s mission is to help citizens become more self-sufficient in several ways. Support includes housing counseling and homeownership programs. Borrowers can receive homeownership education, referrals to realtors and lenders and down payment assistance.  

• Credit score: N/A
• Income limit: N/A
• Loan limit: N/A

Best for Forgivable Down Payment Assistance: NeighborWorks Umpqua Veterans Down Payment Assistance

The NeighborWorks Umpqua Veterans Down Payment Assistance program provides down payment assistance grants and loans to eligible homebuyers. It’s available exclusively to residents of Oregon who have resided in the state for at least one year. Applicants must complete a homebuyer education course as well as two counseling sessions before closing on the home. 

• Credit score: N/A
• Income limit: Between $53,200 and $100,400, depending on county and household size
• Loan limit: $10,000

Best for Down Payment Assistance Loans: NeighborImpact Down Payment Assistance

The NeighborImpact Down Payment Assistance program is designed to help low-to-moderate-income first-time homebuyers. It can be used alongside other loan programs, including the Oregon Bond Program. Eligible borrowers are required to participate in at least eight hours of homebuyer education for this program. 

• Credit score: Undefined 
• Income limit: Below the county’s median income
• Loan limit: 20% of the home’s sales price

Best for Closing Cost Assistance: Oregon Housing Down Payment Assistance

Oregon Housing provides down payment assistance in two ways. One is a homeownership program, which is funded and distributed to organizations throughout the state. The other is lending programs that are paired with down payment assistance programs. 

• Credit score: Undefined
• Income limit: Varies
• Loan limit: Varies

Best National First-Time Homebuyer Programs

In addition to programs that are specific to Oregon, there are some national programs to be aware of. These government-backed loans can make it easier to buy your first home. 

Best for Low Down Payment Requirements: FHA Loans

The Federal Housing Administration offers FHA loans with lower requirements to help first-time homebuyers achieve homeownership. FHA loans are guaranteed by the Federal Housing Administration, so if a borrower defaults on their mortgage, the lender is protected. These loans can be useful, but they also come with requirements that borrowers should be aware of.

• Credit score: 580 
• Income limit: Varies by location
• Loan limit: Varies by location

Best National FHA Lender: Rocket Mortgage® 

Rocket Mortgage is an online lender for FHA loans as well as other mortgage products. The company offers a streamlined online application process. It also offers educational resources and loan experts who can help borrowers choose the right mortgage loan. 

• Credit score: 580
• Income limit: Varies by location
• Loan limit: Varies by location

Best for Military and Veterans: VA Loans

VA loans are available exclusively for military members, veterans and military families who meet certain eligibility criteria. The Veterans Benefits Administration guarantees VA loans. For those who qualify, several benefits come with these loans.

• Credit score: 600
• Income limit: Varies by location
• Loan limit: Varies by location

Best National VA Lender: Veterans United

Veterans United is a lender that specializes in VA loans. The company works directly with military advisers to ensure that customers getting a VA loan receive knowledgeable support. The company offers free assistance for some borrowers with poor credit. 

• Credit score: 600
• Income limit: Varies by location
• Loan limit: Varies by location

Best for Rural Homeownership: USDA Loans

The United States Department of Agriculture (USDA) offers USDA loans for borrowers in rural areas. There are several requirements to qualify for a USDA loan, including household income limits. The home being purchased also needs to be located in a qualifying rural area as defined by the USDA. 

• Credit score: Varies by lender
• Income limit: No more than 115% of the area’s median income
• Loan limit: Varies by area

Best National USDA Lender: CrossCountry Mortgage

CrossCountry Mortgage is a large mortgage lender and offers several products, including USDA loans. It offers the CCM Smart Start program, which can provide up to $5,250 in down payment assistance for first-time homebuyers. It also offers a FastTrack Credit Approval program to accelerate the closing process.

• Credit score: 640
• Income limit: Debt-to-income ratio of 41% or less
• Loan limit: Varies by location

How to Qualify

Every program has its own set of requirements; however, you can expect basic requirements from most of them:

• Be able to show a positive credit history
• Meet income and work history requirements
• Meet other eligibility requirements for the program, such as being a resident of Oregon for one year
• Use the property as a primary residence

How to Apply

1. Research and identify the program you want to apply for
2. Find a mortgage lender
3. Follow the instructions to apply for the program
4. Submit documentation as required to your lender 
5. Complete homebuyer education courses and counseling sessions if required

Picking a First-Time Homebuyer Program

First-time homebuyers can participate in programs that make achieving homeownership easier and more affordable. To pick the right program, consider eligibility requirements as well as the area where you hope to purchase a home. Borrowers should also review the fees associated so there are no surprises.

Frequently Asked Questions

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