Oregon First-Time Home Buyer Programs 2026

By Grantsights14 min readUpdated Nov 3, 202626 official sourcesHow we checkCorrections

Quick Answer: Oregon's main state help is Flex Lending from Oregon Housing and Community Services (OHCS): a FirstHome or NextStep first mortgage paired with 4% or 5% of the loan as a second mortgage, per guideline manuals last updated August 15, 2026.

Full answer and how we checked it

That second loan is forgivable (0% interest, no payments) for buyers at or below 80% of area median income, but it's forgiven only after a 30-year term for the 4% version or a 15-year term for the 5% version; above 80% it's an amortizing loan at 1% over your first mortgage rate. Separately, OHCS funds local organizations that give up to $60,000 or 20% of the price, sometimes as a grant, and the City of Portland's Down Payment Assistance Loan reaches $80,000 to $100,000, with 10% of it paid as a home improvement grant.

This guide is for: people buying their first home in Oregon, plus repeat buyers who want to know which state down payment help still applies to them.

Data note: Grantsights checked OHCS's down payment assistance page (opens in a new tab), FirstHome lender page (opens in a new tab), NextStep lender page (opens in a new tab), the FirstHome and NextStep guideline manuals (both last updated August 15, 2026), and OHCS's county tables for income limits, purchase price limits and AMI tiers on November 3, 2026. OHCS's limit tables don't print an effective date, so the figures below are as posted that day. Local figures come from the Portland Housing Bureau (opens in a new tab) and Washington County Community Development (opens in a new tab).

In this guide (10 sections)

Oregon Down Payment Assistance Programs Compared (2026)
Oregon Income and Purchase Price Limits by County
What Flex Lending Delivered in 2025
Local Programs in Portland, Washington County and Other Areas
FHA, VA and USDA Loans in Oregon
What OHCS Doesn't Tell You on Its Homebuyer Pages
Common Mistakes and Red Flags
How to Apply for Oregon Down Payment Assistance, Step by Step
If Oregon Money Runs Out or Your Application Is Denied
Sources

For how Oregon compares with other states and the federal options, see our national guide to first-time home buyer grants and programs.

Oregon Down Payment Assistance Programs Compared (2026)

2 first mortgages and 2 DPA sizes make up OHCS Flex Lending: FirstHome (first-time buyers, federal income and price limits) and NextStep (any buyer under $125,000 of qualifying income), each with 4% Standard DPA or 5% Focused Demographics DPA. According to OHCS's FirstHome guideline manual, DPA "will be forgiven in full once the loan term has been completed," and it can cover up to 100% of your cash to close.

Program	Run by	Type	Amount	What you repay, and when	First-time buyer?	Credit score minimum	Open? (agency page, Nov 3, 2026)
FirstHome or NextStep, Standard DPA, income at or below 80% AMI	OHCS	Forgivable loan	4% of the total first mortgage	0% interest, no payments; forgiven after a 30-year term; full balance due on sale, transfer, refinance, payoff, renting out or default before then	FirstHome: yes (exceptions for targeted areas and veterans). NextStep: no	620 ("as low as")	OHCS doesn't post a funding status; ask an approved lender
FirstHome or NextStep, Focused Demographics DPA, at or below 80% AMI	OHCS	Forgivable loan	5% of the total first mortgage	Same, but forgiven after a 15-year term	Same	620	Same
Standard DPA, income above 80% AMI	OHCS	Repayable loan	4%	Monthly payments at 1% over the first mortgage rate; 20 years (80% to 120% AMI) or 10 years (above 120% AMI)	Same	620	Same
Focused Demographics DPA, 80% to 120% AMI	OHCS	Repayable loan	5%	Monthly payments at 1% over the first mortgage rate for 30 years	Same	620	Same
OHCS Down Payment Assistance program (through local organizations)	OHCS-funded nonprofits and the City of Portland	Grant, forgivable loan or loan, set by each organization	Up to $60,000 or 20% of the price, whichever is less	Varies by organization; OHCS says some help is "a grant or forgivable second lien"	First-time and/or first-generation buyers	Set by the organization and lender	OHCS says to contact the organization for "program availability"
Veteran DPA (same program)	OHCS-funded organizations	Same	Up to $60,000; up to 10% may go to lender-required repairs	Varies	Veterans and families at or below 100% AMI	Varies	25% of the program's funds are reserved for veterans
Mortgage Credit Certificate	OHCS	Federal tax credit	Not listed	n/a	n/a	n/a	No MCC appears on OHCS's current homebuyer pages

Sources: OHCS FirstHome manual, Section 6 (opens in a new tab) and Section 5 (opens in a new tab); NextStep manual, Section 6 (opens in a new tab) and Section 2 (opens in a new tab); OHCS down payment assistance page (opens in a new tab).

Who gets 5% instead of 4%. Focused Demographics needs two of four things, per Section 5 of the FirstHome manual: a household of four or more, a household member with a disability, a front-end debt ratio of 28% or higher, or a sole head of household with at least one dependent. The NextStep manual uses the same 5% and the same forgiveness terms.

FirstHome versus NextStep. FirstHome counts the income of every adult in the household, caps the price by county and doesn't allow non-occupying co-borrowers. NextStep counts only the borrowers' qualifying income, has no county price cap on OHCS's pages, and allows non-occupying co-borrowers and cosigners.

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Oregon Income and Purchase Price Limits by County

$125,000 is the NextStep income cap in every county, set in Section 2.5 of the NextStep manual. FirstHome limits vary by county, and the AMI tier decides whether your DPA is forgivable. Here are the figures for Oregon's eight most populous counties.

County	FirstHome income limit, 1-2 / 3+ people (non-targeted)	FirstHome max price, non-targeted / targeted	Forgivable DPA cutoff (80% AMI)	120% AMI tier cutoff
Multnomah	$131,588 / $151,326	$733,987 / $897,096	$102,640	$153,960
Washington	$131,588 / $151,326	$733,987 / no targeted areas	$102,640	$153,960
Clackamas	$131,588 / $151,326	$733,987 / no targeted areas	$102,640	$153,960
Lane	$110,300 / $126,845	$566,354 / $692,211	$77,520	$116,280
Marion	$110,300 / $126,845	$566,354 / $692,211	$82,720	$124,080
Jackson	$110,300 / $126,845	$566,354 / $665,173	$78,480	$117,720
Deschutes	$137,075 / $157,636	$752,036 / $919,155	$92,080	$138,120
Linn	$110,300 / $126,845	$566,354 / $692,211	$77,840	$116,760

Sources: OHCS FirstHome non-targeted income limits (opens in a new tab), FirstHome purchase price limits (opens in a new tab) and FirstHome AMI tiers (opens in a new tab), as posted November 3, 2026. The pages don't show an effective date. OHCS says AMI tiers are updated yearly from HUD data and come from Fannie Mae's AMI figures.

Rules that move these numbers:

Targeted areas. These are specific census tracts or whole counties (Baker, Clatsop, Harney, Lake, Union, Wallowa and Wheeler are entirely targeted). In a targeted area the price cap is higher and you don't have to be a first-time buyer for FirstHome.
The AMI tier is a single county figure. OHCS's tier chart isn't adjusted for household size, and your underwriter's qualifying income is what's compared, not total household income.
NextStep's cap cuts off the top tier in the Portland area. Because $125,000 is below the $153,960 tier line in Multnomah, Washington and Clackamas, no NextStep buyer there reaches the 10-year "above 120% AMI" tier. For the federal HUD tables behind these numbers, see our HUD income limits guide.

What Flex Lending Delivered in 2025

954 households bought a home with Flex Lending in 2025, according to OHCS's March 25, 2026 release (opens in a new tab), backed by almost $300 million in mortgages and $7.5 million in down payment assistance. The release also reports 33 lending partners, 32 veteran households, and 43% of buyers living in rural areas.

Grantsights analysis of that OHCS release puts the average down payment assistance at about $7,862 per household ($7.5 million divided by 954) against an average mortgage of about $314,000. That DPA average is only about 2.5% of the average loan, well under the 4% minimum a DPA borrower gets. The likely reason is that FirstHome is offered "with or without" DPA, so some buyers took only the first mortgage. Don't read the average as what you'll get. It's a sign that DPA is optional, and for most buyers under the 80% line, taking the forgivable 4% is the best bet if they expect to stay put.

The release doesn't say how many buyers received the forgivable version versus the amortizing one. Ask your loan officer which tier your income lands in before you compare offers.

Local Programs in Portland, Washington County and Other Areas

$100,000 is the top of the City of Portland's Down Payment Assistance Loan (DPAL) range, according to the Portland Housing Bureau's program page (opens in a new tab), checked November 3, 2026. Most other Oregon local help reaches buyers through the nonprofits OHCS funds.

Where	Local program	Help available	Key terms	Status, per the program's page
Portland	Down Payment Assistance Loan (Portland Housing Bureau)	$80,000 to $100,000, depending on funding source and location	0% interest (0.012% APR), 30-year deferred second; 50% forgiven at year 15, 3% a year in years 16 to 29, the rest at year 30; at least 10% of the award paid as a home improvement grant; $500 origination fee	"Funding is subject to availability"; apply through a community partner
Washington County	First Home Homeownership Program	Set by partner organizations	Down payment help through Proud Ground, Habitat and Portland Housing Center (now Arrive), plus land trust homes	County says $3.9 million went out in its 2022 and 2024 cycles and another $1.2 million cycle was set for the end of 2025; no 2026 round posted
Lane, Linn, Benton, Marion, Polk	OHCS-funded DPA through DevNW and Habitat for Humanity of Oregon	Up to $60,000 or 20% of price (OHCS program cap)	Each organization sets its own terms	OHCS lists them as awarded organizations; ask each one about availability
Deschutes, Crook, Jefferson	OHCS-funded DPA through RootedHomes and Thistle & Nest	Same cap	Same	Same
Jackson, Josephine	OHCS-funded DPA through ACCESS and Habitat for Humanity of Oregon	Same cap	Same	Same
Eugene, Salem	No current city program verified	n/a	Use the OHCS-funded organizations above	Could not verify

Portland's rules, from the bureau's page:

Income at or below 100% of Portland's AMI, and sometimes 80% depending on funding source. The bureau's 2026 limits, effective June 1, 2026, put 100% AMI at $128,300 for a family of four and 80% at $102,650.
First-time buyer (no home owned in three years), working with a counselor at a community partner, and a home inside Portland city limits. The funding source decides which part of the city qualifies.
No more than $10,000 in liquid assets at closing, with anything above that put toward the purchase, plus a minimum $500 of your own money (gifts allowed).
Interstate Corridor buyers must also be in the N/NE Homeownership Preference Policy.

Many local programs run on federal HOME money; our HOME Investment Partnerships guide explains how it reaches counties and cities.

FHA, VA and USDA Loans in Oregon

3.5% is the FHA minimum down payment, according to HUD's FHA loans page (opens in a new tab), and OHCS's 4% DPA is enough to cover it, because DPA is figured on the full first mortgage note. FirstHome's government summary lists FHA, FHA Section 184, VA and USDA 30-year fixed loans as eligible first mortgages.

FHA. OHCS caps FHA loans at 96.5% loan-to-value and follows HUD's guidance on combined financing.
FHA Section 184. This HUD-guaranteed loan for Native American and Alaska Native borrowers is listed as an eligible FirstHome first mortgage.
VA. VA's purchase loan page (opens in a new tab) says eligible buyers usually need no down payment when the price doesn't exceed the appraised value, though there may be a funding fee. A veteran who hasn't used bond financing before can take FirstHome outside a targeted area without being a first-time buyer, using OHCS's one-time veteran exemption.
USDA. Rural Oregon homes can qualify for USDA guaranteed loans at 100% financing, and OHCS allows them under FirstHome and NextStep. Our USDA housing guide covers the rules.
Conventional. Fannie Mae HFA Preferred and Freddie Mac HFA Advantage loans go up to 97% loan-to-value, with reduced mortgage insurance for borrowers under 80% AMI, according to OHCS's FirstHome lender page.

What OHCS Doesn't Tell You on Its Homebuyer Pages

15 years is the shortest time you must keep an OHCS forgivable second to have it wiped out, and the standard version takes 30. Grantsights checked OHCS's consumer pages against the full guideline manuals and fee section, and five things are easy to miss.

"Forgivable" means all or nothing. The manual says the loan is forgiven once the term is completed, and it lists no partial forgiveness along the way. Sell or refinance in year 12 of a 15-year term and you owe the whole 5%. Portland's DPAL works differently, forgiving half at year 15.
Rates aren't posted publicly. OHCS's pages send rates to a lender login and a daily email list run by Hilltop Securities, the program administrator. Ask two approved lenders for a written quote on the same day.
Your loan is serviced from Boise. OHCS's manual says Idaho Housing and Finance Association buys and services the first and second mortgages, so payments and payoff requests go to IHFA, not to OHCS.
There's a $225 compliance fee. Section 7 of the FirstHome manual lets Hilltop Securities charge a $225 Code Compliance Review Fee that can be passed to you. OHCS bars any other fee on the DPA second except recording and interest.
Recapture tax isn't explained on OHCS's current pages. FirstHome follows the income and price rules of IRS Code Section 143, which governs bond-financed mortgages. Under federal law, bond-financed buyers who sell within nine years at a gain, with income above set limits, can owe a recapture tax reported on IRS Form 8828 (opens in a new tab). Ask your lender whether a recapture notice comes with your FirstHome loan.

For example, a couple in Marion County earning $80,000 buys a $400,000 home with a FirstHome conventional loan at 97% (a $388,000 first mortgage). They're under the $110,300 FirstHome limit and under Marion's $82,720 forgivable cutoff, so they get specifically 4% Standard DPA of $15,520 at 0% with no payments, enough for their $12,000 down payment and part of their closing costs. Any unused DPA goes to principal, capped at 1% of the loan ($3,880). If they have two children and a front-end debt ratio of 28% or more, they qualify for 5% Focused Demographics DPA instead: $19,400, forgiven after 15 years rather than 30. If their income were $90,000, they'd be over the 80% line, and the same $15,520 would become a 20-year loan with monthly payments at 1% over their first mortgage rate.

Common Mistakes and Red Flags

$0 is what a real government program charges to apply for help. The FTC's government grant scams page (opens in a new tab) warns that no agency will ever ask you to pay to get a grant, and OHCS works only through approved lenders and listed organizations.

Red flag: an "Oregon homebuyer grant" ad asking for an upfront fee. OHCS's own DPA is a second mortgage made by your lender at closing, never a check mailed to you.
Common mistake: expecting the forgivable DPA to shrink each year. It doesn't. People underestimate how long 30 years is when they plan to move for a job in five.
Common mistake: assuming every buyer gets the forgivable version. Above 80% of AMI, the same 4% comes with a monthly payment for 10 to 20 years.
Refinancing after rates drop. Paying off or refinancing the first mortgage makes the DPA due, so add the full DPA balance to any refinance math.
Renting the house out. The manual lists renting any part of the home as a repayment trigger.
Wire fraud. Before sending closing money, call your escrow company at a number you found yourself and confirm the account.

Still renting in Oregon while the down payment fund grows? See which rent relief exists in our rental assistance programs guide.

How to Apply for Oregon Down Payment Assistance, Step by Step

1 year is how long OHCS treats a homebuyer education certificate as valid, so time the class within a year of closing. There's no direct application to OHCS for Flex Lending; your approved lender reserves the loan.

Take a homebuyer class. Use an OHCS-approved homeownership center (OHCS's housing counseling page (opens in a new tab) lists them). If a local class won't work, OHCS accepts Finally Home! or NeighborWorks' Framework online course.
Find an approved Flex Lending lender. OHCS's Flex Lending page (opens in a new tab) has a searchable list by county and a list of featured loan originators.
Check your county limits and tier in the table above, and ask whether the home is in a targeted area.
Ask about Focused Demographics. If you meet two of the four criteria, the lender completes a worksheet for the 5% option.
For local DPA, call an awarded organization first. OHCS's program requires a meeting with a certified housing counselor, and each group has its own waitlists and rules. In Portland, start with one of the DPAL community partners such as Arrive, Hacienda CDC, NAYA, PCRI or the African American Alliance for Homeownership.
Stack carefully. OHCS's manual allows other DPA alongside its own, as long as the OHCS second stays in second lien position. HUD's counselor finder (opens in a new tab) can connect you with an approved agency to sort out the order.

Our guide on how to apply for grants as an individual covers paperwork habits that also help with DPA files.

If Oregon Money Runs Out or Your Application Is Denied

3 backup routes exist when one Oregon program is closed or says no: another Flex Lending product, a different local organization, or a federal loan with a small down payment.

Local DPA has no money right now. OHCS's local program runs on grants to organizations, so funding comes in rounds. Ask the counselor about the next round and about Flex Lending's 4% DPA, which doesn't depend on those grants.
Over the FirstHome limit or not a first-time buyer. NextStep has no first-time buyer rule and a $125,000 cap on qualifying income only.
Over $125,000. Flex Lending is out, but FHA with 3.5% down or VA with no down payment may still fit.
Denied by underwriting. Your lender makes the credit decision. A HUD-approved counselor can work on credit, debt-to-income or savings problems before you reapply.
Already own a home and need repairs, not a purchase? See home repair grants for low-income homeowners.

Buying near a state line? Compare our guides for Washington, whose Vancouver area shares Portland's metro income limits, Idaho and California.

Oregon households stretching to save can try the Grantsights free eligibility checker, which points to official routes like benefit finders, rent help and 211. It won't give you a grant or any home purchase funds.

Sources

OHCS: Down Payment Assistance (opens in a new tab) - up to $60,000 or 20% of price, eligibility, veterans set-aside, awarded organizations by county
OHCS: Flex Lending for homebuyers (opens in a new tab) and Homebuyers page (opens in a new tab) - FirstHome and NextStep overview, homebuyer education, lender search
OHCS: FirstHome Lenders (opens in a new tab) and NextStep Lenders (opens in a new tab) - DPA sizes, 620 credit score, LTV limits, co-borrower rules
OHCS: FirstHome manual, Section 5 Focused Demographics (opens in a new tab) and Section 6 Down Payment Assistance (opens in a new tab) - forgivable and amortizing terms (last updated August 15, 2026)
OHCS: FirstHome manual, Section 7 Fees and Charges (opens in a new tab) and Section 9 Compliance (opens in a new tab) - $225 compliance fee, IHFA servicing
OHCS: FirstHome Government Program Summary (opens in a new tab) - eligible loan types, first-time buyer definition, veteran exemption, education certificate
OHCS: NextStep manual, Section 2 (opens in a new tab) and Section 6 (opens in a new tab) - $125,000 cap, no first-time rule, DPA terms
OHCS: FirstHome non-targeted income limits (opens in a new tab), purchase price limits (opens in a new tab) and AMI tiers (opens in a new tab) - county figures as posted November 3, 2026
OHCS: Lending products helped almost 1,000 Oregon households buy a home in 2025 (March 25, 2026) (opens in a new tab)
OHCS: Housing counseling (opens in a new tab)
Portland Housing Bureau: Down Payment Assistance Loan (opens in a new tab) and How to apply (opens in a new tab) - amounts, forgiveness schedule, eligibility
Portland Housing Bureau: Income, rent and utility limits (opens in a new tab) - 2026 homebuyer income limits effective June 1, 2026
Washington County: First Home Homeownership Program (opens in a new tab)
HUD: FHA loans (opens in a new tab); HUD counselor search (opens in a new tab)
VA: Purchase loan (opens in a new tab)
IRS: Form 8828 recapture tax (opens in a new tab)
FTC: Government grant scams (opens in a new tab)

Frequently Asked Questions

Does Oregon have a first-time home buyer grant?

Not from the state housing finance agency as a cash grant. Oregon Housing and Community Services (OHCS) gives 4% or 5% of the first mortgage as a second mortgage. Buyers at or below 80% of area median income get a forgivable version with 0% interest and no payments, forgiven only after a 30-year term (4%) or 15-year term (5%) if they don't sell or refinance first. Some local partners funded by OHCS's separate DPA program give part of their help as a grant, and Portland sets aside 10% of each Down Payment Assistance Loan as a home improvement grant.

How much down payment assistance can I get in Oregon?

Through OHCS Flex Lending, 4% of the total first mortgage (Standard DPA) or 5% (Focused Demographics DPA), as listed in the FirstHome and NextStep manuals last updated August 15, 2026. Through the OHCS-funded Down Payment Assistance program run by local organizations, up to $60,000 or 20% of the price, whichever is less. In Portland, the city's Down Payment Assistance Loan can reach $80,000 to $100,000 depending on funding source and location.

What is the income limit for Oregon first-time home buyer programs?

For FirstHome outside targeted areas, OHCS lists $131,588 for one or two people and $151,326 for three or more in Multnomah, Washington and Clackamas counties, and $110,300 and $126,845 in most other counties, as posted on November 3, 2026. NextStep caps qualifying income at $125,000 statewide. To get the forgivable DPA, income must be at or below 80% of the county's AMI, which OHCS lists as $102,640 in the Portland-area counties.

Do I have to be a first-time buyer for OHCS programs?

For FirstHome, yes, meaning you haven't owned or occupied a principal residence in the past three years, unless you buy in a targeted area or are a veteran using a one-time exemption. NextStep has no first-time buyer rule, though you can't own other residential real estate at closing. The OHCS-funded local DPA program is for first-time or first-generation buyers.

What credit score do I need for an Oregon Housing loan?

OHCS's FirstHome and NextStep lender pages say credit scores 'as low as 620.' Your lender and the FHA, VA, USDA, Fannie Mae or Freddie Mac rules for the first mortgage still apply.

What happens to OHCS down payment assistance if I sell?

The balance is due if you sell, transfer, refinance or pay off the first mortgage, rent out the home, don't move in within 60 days, or default before the loan term ends. The forgivable 4% loan has a 30-year term and the forgivable 5% loan a 15-year term, and OHCS's manual says they're forgiven in full only once the term is completed. There's no partial yearly forgiveness in the manual.

Does Oregon still offer a Mortgage Credit Certificate?

OHCS's current homebuyer, Flex Lending and down payment assistance pages don't list one, and Grantsights couldn't find an active MCC offering on any OHCS page on November 3, 2026. Ask a Flex Lending lender before you count on the tax credit.

Do I need a homebuyer class for Oregon down payment assistance?

Yes, for first-time buyers. OHCS requires a class through an OHCS-approved homeownership center, or online through Finally Home! or NeighborWorks' Framework if a local class isn't workable, and the certificate is good for one year. The OHCS-funded local DPA program and Portland's loan also require meeting with a housing counselor.

Last updated November 3, 2026. Published by Grantsights from public sources. See our editorial policy, how we build and check guides, corrections and how we make money.