Down Payment Assistance Programs in Oregon (2026)
Last updated 05/18/2026 by
Ante Mazalin
Edited by
Andrew Latham
Summary:
Down payment assistance in Oregon is money from state agencies, local governments, and nonprofits that helps homebuyers cover the upfront costs of purchasing a home.
Oregon offers some of the most flexible programs in the country, with options for first-time buyers, repeat buyers, veterans, and buyers in high-cost cities like Portland and Bend.
- OHCS DPA Program: Up to $60,000 or 20% of the purchase price for first-time and first-generation buyers at or below 100% AMI — 25% of funds are reserved for Oregon veterans.
- Flex Lending FirstHome: Pairs a below-market first mortgage with 4% or 5% of the loan amount as down payment assistance, available through approved lenders statewide.
- Flex Lending NextStep: A fixed-rate first mortgage plus a forgivable or repayable second mortgage for DPA — open to repeat buyers as well as first-timers.
- Portland DPAL: Up to $80,000–$100,000 in deferred-payment assistance for buyers purchasing within Portland city limits, with 50% forgiven at year 15 and full forgiveness at year 30.
Saving a down payment in Oregon is genuinely difficult — especially in high-cost markets like Portland and Bend, where median home prices have climbed well above the national average. The programs below exist precisely for that gap: the moment when you can afford the monthly payment but can’t get to closing without help.
Oregon’s state housing agency (OHCS) runs the largest programs, but city-level assistance in Portland, Salem, and Central Oregon can add tens of thousands more — sometimes enough to cover your entire down payment.
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Statewide Oregon Down Payment Assistance Programs
Oregon Housing and Community Services (OHCS) is the state agency that administers or funds the majority of Oregon’s homeownership assistance. Most programs require working with an OHCS-approved lender and completing a HUD-approved homebuyer education course before you can access funds.
| Program | Max Assistance | Who Qualifies | Repayment |
|---|---|---|---|
| OHCS DPA | $60,000 or 20% of purchase price | First-time or first-generation buyers, ≤100% AMI | Grant or forgivable second lien (varies by organization) |
| Flex Lending FirstHome | 4% or 5% of first mortgage amount | First-time buyers, income-eligible | Second mortgage (forgivable or repayable — terms vary by income) |
| Flex Lending NextStep | Up to 100% of cash-to-close | Any income-eligible buyer (repeat buyers allowed) | Forgivable or repayable second mortgage |
| Oregon Bond Cash Advantage | 3% of loan amount (grant) | Income-eligible first-time buyers (targeted areas: any buyer) | Grant — no repayment required |
| Oregon Bond Rate Advantage | Below-market rate only | Income-eligible buyers | No cash assistance — lower rate instead |
| Oregon MCC | Up to $2,000/year tax credit | First-time buyers in participating jurisdictions | Tax credit — no repayment |
OHCS Down Payment Assistance Program
The OHCS DPA Program distributes funds competitively to organizations across Oregon, which then provide closing cost and down payment assistance to eligible buyers. Each organization sets its own specific guidelines, so the terms — including whether the assistance comes as a grant or a forgivable second lien — depend on the organization serving your area.
To qualify, you must be a first-time homebuyer or a first-generation homebuyer at or below 100% of area median income (AMI). You must also complete a First-Time Homebuyer Education course and meet with a HUD-certified housing counselor. Contact OHCS directly at 800-453-5511 or visit oregon.gov/ohcs to find the organization serving your county.
Flex Lending FirstHome
FirstHome is OHCS’s primary mortgage product for first-time buyers. It pairs a competitive fixed-rate first mortgage with either 4% or 5% of the loan amount as down payment assistance, delivered as a second mortgage. Forgiveness terms depend on your income and the organization serving your area — ask your lender whether the DPA qualifies as a forgivable or repayable second lien at your income level.
FirstHome is available through approved lenders statewide — you don’t need to apply directly through OHCS. Ask an approved lender if your income and purchase qualify, or search OHCS’s featured lender list at oregon.gov/ohcs/flex-lending.
Flex Lending NextStep
NextStep is designed for homebuyers who don’t qualify as first-time buyers but still need help with the down payment. It combines a fixed-rate first mortgage with a second mortgage for DPA that can be either forgivable or repayable, depending on your income level. The DPA can cover up to 100% of your cash requirement at closing — down payment, closing costs, prepaid items, and upfront mortgage insurance.
NextStep is paired with the OHCS DPA Program, so your assistance amount and forgiveness terms depend on the organization in your area. The same approved lender network serves both FirstHome and NextStep.
Oregon Bond: Cash Advantage and Rate Advantage
Oregon Bond is OHCS’s legacy loan program, which offers two options. Cash Advantage gives eligible buyers a below-market mortgage rate plus a 3% grant on the loan amount — that grant goes toward closing costs rather than the down payment itself, and it never needs to be repaid. Rate Advantage offers the lowest available rate with no cash grant, making it a better fit for buyers who have savings but want to maximize monthly affordability.
OHCS has been transitioning buyers toward Flex Lending, which offers more flexible DPA terms. Oregon Bond remains available through approved lenders, but ask your lender whether FirstHome or NextStep would provide more assistance for your situation.
Oregon Mortgage Credit Certificate (MCC)
An MCC converts a portion of your annual mortgage interest into a dollar-for-dollar federal tax credit of up to $2,000 per year. Unlike DPA, an MCC doesn’t reduce your upfront costs — it reduces what you owe the IRS each year you own the home. The credit remains in place for the life of your mortgage as long as the home stays your primary residence.
MCC availability in Oregon varies by jurisdiction. Ask the housing counselor you meet with through OHCS whether an MCC is currently offered in your county or city.
Down Payment Assistance in Portland
Portland has one of the strongest city-level programs in Oregon. The Portland Housing Bureau (PHB) runs the Down Payment Assistance Loan (DPAL), a second mortgage that can reach up to $80,000–$100,000 depending on the funding source and location of the home within Portland. The loan carries 0% interest and no monthly payments for 30 years.
Forgiveness kicks in after 15 years: 50% of the loan balance is forgiven at the 15th anniversary. Starting in year 16, an additional 3% of the original loan amount is forgiven annually, and any remaining balance is fully forgiven at year 30. To qualify for forgiveness, you must maintain the home as your primary residence throughout the term.
Portland DPAL eligibility requirements:
- First-time homebuyer (no ownership in the past three years)
- Annual household income at or below 100% of Portland’s current AMI (some funding sources cap at 80% AMI)
- Maximum $10,000 in liquid assets at closing; amounts above this threshold must be applied to the purchase
- Minimum $500 borrower contribution at closing (gift funds are allowed)
- Property must be within Portland city limits; single-family homes, condos, and townhomes only
- $500 origination fee applies
A 10% set-aside grant for home improvements is included with every DPAL award — funds must be used within six months of closing and are managed by PHB.
To apply, contact one of the five PHB community partners: African American Alliance for Homeownership (AAAH), Hacienda Community Development Corporation, Native American Youth and Family Center (NAYA), Portland Community Reinvestment Initiatives (PCRI), or Portland Housing Center. Each partner also provides HUD-approved homebuyer education and counseling.
Pro Tip: Portland buyers can stack the DPAL with OHCS Flex Lending. A Flex Lending first mortgage paired with the DPAL as a second lien means your DPA could cover both the down payment and closing costs entirely. Ask your homebuyer counselor at one of the community partners to model this combination before you apply.
Down Payment Assistance in Eugene and Springfield
Eugene and Springfield buyers currently rely on Oregon’s statewide programs for down payment help. DevNW, the primary nonprofit housing counselor in the Eugene-Springfield area, administered a dedicated local DPA program for many years — but that program ended in February 2023 due to funding.
The good news: Oregon’s state programs are widely available in Lane County. OHCS’s Flex Lending FirstHome and NextStep are accessible through approved lenders in the Eugene metro, and Lane County may be served by an OHCS DPA partner organization.
Ask your lender whether your purchase location qualifies as a federally designated targeted area — Oregon has several, and buyers in targeted areas can access OHCS mortgage products even without first-time buyer status.
DevNW remains active in Eugene and Springfield as a HUD-certified homebuyer education and counseling center — the required step before accessing most assistance. DevNW’s Springfield office is at 212 Main Street, Springfield, OR 97477; phone: 541-345-7106.
Down Payment Assistance in Salem
Salem homebuyers can access both state-level OHCS programs and assistance administered through the City of Salem’s HOME Investment Partnership Program. The City of Salem does not directly fund individuals; instead, it partners with nonprofit community organizations to deliver assistance to low- and moderate-income buyers.
DevNW operates a Salem office at 454 Church Street NE, Suite 110, which provides homebuyer education, counseling, and access to OHCS-funded assistance. Contact DevNW Salem at 503-779-2680 to start the process and find out which local DPA funds are currently available for Salem buyers.
Salem also falls within Oregon’s targeted area designations, which can expand eligibility for Oregon Bond and Flex Lending products to repeat buyers who wouldn’t otherwise qualify under the first-time buyer rule.
Down Payment Assistance in Bend and Central Oregon
Bend is one of Oregon’s most expensive housing markets, with median home prices that make the standard 20% down payment out of reach for most working households. Two primary programs exist for Deschutes County and the surrounding region.
Thistle & Nest
Thistle & Nest is Central Oregon’s community land trust, and it launched $7.44 million in down payment assistance in May 2026 for buyers in Bend, Madras, and Prineville. Eligible buyers can receive between $50,000 and $215,000 in DPA. The program uses a land trust model — Thistle & Nest retains ownership of the land under the home, selling only the dwelling. This significantly lowers the purchase price while allowing the buyer to build equity in the structure.
To qualify, your household income must be below 80% of the area median income. A separate program exists specifically for veteran households. Buyers work through NeighborImpact for the required homebuyer education course. Learn more at thistleandnest.org.
NeighborImpact HomeSource
NeighborImpact is the dominant homebuyer education and housing counseling nonprofit in Central Oregon. Through its HomeSource program, NeighborImpact connects Bend-area buyers to OHCS Flex Lending, Thistle & Nest, and other regional DPA resources. Because statewide programs don’t always reflect Central Oregon’s elevated home prices, NeighborImpact counselors are the best first call for Bend buyers — they know which programs currently have funding and which have waiting lists.
How to Apply for Oregon Down Payment Assistance
Most Oregon DPA programs share the same basic application path. Start here before contacting a lender.
- Find your local housing counselor. Visit OHCS’s housing counselor locator at oregon.gov/ohcs or contact DevNW, NeighborImpact, or Portland Housing Center depending on where you’re buying. A HUD-certified counselor is required for most Oregon programs.
- Complete a homebuyer education course. Most programs require a HUD-approved course. Portland Housing Center offers a hybrid option; DevNW and NeighborImpact offer in-person and online sessions. Budget $75 for the course fee.
- Get a DPA assessment. Your counselor will review your income, assets, and credit against current program guidelines and tell you which programs you’re eligible for and what’s currently funded.
- Connect with an OHCS-approved lender. For Flex Lending, you’ll need to work with a lender on OHCS’s approved list. Your counselor can refer you to lenders familiar with the programs.
- Apply for your first mortgage and DPA simultaneously. DPA second mortgages close alongside your first mortgage. Your lender coordinates the paperwork — you don’t file a separate DPA application.
- Close and occupy as your primary residence. Forgiveness and deferred-payment terms are contingent on maintaining the home as your primary residence. Most programs require you to notify the program if you sell, refinance, or move out.
Can You Stack Multiple Oregon DPA Programs?
Yes — and in some markets, stacking is how buyers cover the full down payment and closing costs. The most common combination is a Flex Lending first mortgage (which comes with its own DPA second) layered with the OHCS DPA from a local organization. Portland buyers can stack the PHB DPAL on top of that.
The practical limit is your lender’s combined loan-to-value (CLTV) requirements and the rules of each individual program. Some programs prohibit being used alongside specific others — your homebuyer counselor can tell you what’s allowed before you apply. Understanding how DPA programs work together before your counseling session will help you ask better questions.
Other Ways to Lower Your Down Payment in Oregon
If you don’t qualify for DPA programs based on income, or if funding in your area has run out, a few alternatives are worth knowing about.
FHA loans require just 3.5% down for buyers with a 620+ credit score, and conventional loans like Fannie Mae HomeReady and Freddie Mac Home Possible allow 3% down for buyers at or below 80% AMI. VA loans for eligible veterans and service members require no down payment at all.
Oregon also has a First-Time Home Buyer Savings Account program (ORS 316.843) that lets eligible buyers deduct contributions and earnings from their Oregon taxable income. It’s not a grant, but it reduces the tax cost of saving — worth asking a tax professional about if you’re still in the savings phase.
Land trust and leasehold homeownership is another path worth exploring in high-cost markets like Portland and Bend, where land values drive a significant share of the purchase price.
Jubilee
Jubilee is a leasehold homeownership company that separates the cost of the land from the cost of the home — you buy the dwelling, not the ground beneath it. That structure can dramatically reduce the purchase price in markets where land is the expensive part.
Key facts:
- You purchase the home itself at a reduced price and lease the land beneath it, lowering the upfront cost and mortgage size.
- Monthly costs include a land lease fee in addition to your mortgage payment; factor both into your affordability calculation.
- You build equity in the structure as it appreciates, but resale terms are typically governed by the leasehold agreement.
- Worth comparing against DPA programs: in some cases, the purchase price reduction exceeds what any grant or second mortgage could cover.
Read the full trade-offs of leasehold homeownership before committing. The model works well for the right buyer but isn’t a fit for everyone.
Key takeaways
- Oregon’s OHCS DPA Program can provide up to $60,000 — or 20% of the purchase price, whichever is less — to first-time and first-generation buyers at or below 100% AMI. Veterans are prioritized, with 25% of funds reserved for them.
- Flex Lending FirstHome and NextStep are OHCS’s primary mortgage products, both pairing a fixed-rate first mortgage with a DPA second mortgage that can cover up to 100% of cash-to-close. NextStep is available to repeat buyers, not just first-timers.
- Portland’s DPAL can reach up to $100,000 at 0% interest, with 50% forgiven at year 15 and full forgiveness at year 30. Buyers must work through one of five PHB community partners to apply.
- Bend and Central Oregon buyers have access to Thistle & Nest’s $7.44 million in DPA (launched May 2026), with individual awards from $50,000 to $215,000 through a community land trust model.
- Eugene’s city-specific DPA program ended in 2023. Lane County buyers rely on statewide OHCS programs, which are available through approved lenders in the area.
- Most Oregon programs require a HUD-certified housing counselor meeting before you can access funds. That meeting is the single most important first step — your counselor will know which programs have current funding.
Frequently Asked Questions
What is the income limit for Oregon down payment assistance?
Most Oregon DPA programs set income limits at 80% or 100% of area median income (AMI), which varies by county and household size. The OHCS DPA Program caps eligibility at 100% AMI. Some programs, like the Portland DPAL, set the limit at 80% AMI depending on the funding source. Your housing counselor will calculate the exact limit for your household.
Do I have to repay Oregon down payment assistance?
It depends on the program. The OHCS DPA can be structured as a grant or a forgivable second lien. Flex Lending DPA is a second mortgage that may be forgivable if your income is at or below 80% AMI. The Portland DPAL is repayable if you sell or move out before year 15, but forgiveness begins at year 15 and completes at year 30. Always confirm repayment terms with your specific program before closing.
Can first-time buyers in Portland combine the DPAL with state programs?
Yes. Portland buyers can pair the DPAL with an OHCS Flex Lending first mortgage, which comes with its own DPA second mortgage. Stacking is common and often necessary in Portland’s high-cost market. Your homebuyer counselor at a PHB community partner will confirm which combinations are currently allowed.
Is there down payment assistance for repeat buyers in Oregon?
Yes. Flex Lending NextStep is specifically designed for buyers who are not first-time homeowners but still meet income requirements. Oregon Bond products are also available to repeat buyers in OHCS-designated targeted areas, which include parts of Portland, Eugene, Salem, and several other Oregon cities and counties.
What’s the difference between Flex Lending FirstHome and NextStep?
FirstHome is for first-time buyers only and provides 4% or 5% of the loan amount as DPA. NextStep is open to any income-eligible buyer — including repeat buyers — and pairs a fixed-rate first mortgage with a second mortgage for DPA that can be either forgivable or repayable. NextStep DPA can cover up to 100% of your cash requirement at closing, while FirstHome’s DPA is calculated as a percentage of the loan.
How much down payment assistance can I get in Bend, Oregon?
Through Thistle & Nest’s community land trust program, eligible buyers in Bend, Madras, and Prineville can receive between $50,000 and $215,000 in down payment assistance. Qualification requires household income below 80% AMI. OHCS statewide programs are also available to Deschutes County buyers through approved lenders, though Bend’s elevated home prices make local programs like Thistle & Nest particularly valuable.
Do Oregon DPA programs work with FHA loans?
Yes. Oregon’s Flex Lending products are available in both government (FHA, VA, USDA) and conventional configurations. The OHCS DPA program from local organizations can generally be paired with any first mortgage type, subject to that organization’s guidelines. Confirm with your lender and housing counselor that your specific DPA source is compatible with your chosen loan type.
Ready to find the right home loan to pair with your Oregon down payment assistance? Compare mortgage lenders on SuperMoney to see current rates from multiple lenders side by side.
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