StateGrantsGuide

State assistance programs, checked against official sources

Try a program (“LIHEAP”), a state (“Ohio child care”) or an agency (“TDHCA”).

Menu navigation

Oregon first-time homebuyer grants and down payment assistance (2026)

Oregon Housing and Community Services (OHCS) runs Flex Lending, which has two first mortgages, FirstHome and NextStep. Both can add down payment assistance of 4% or 5% of the loan as a second mortgage. That second mortgage is forgiven for buyers at or below 80% of area median income and repaid with interest above that level. A separate OHCS-funded program pays up to $60,000 through local nonprofits.

Written by Editorial team Checked against 3 agencies Last reviewed How we review

Figures apply to 2026 (FirstHome limits effective June 17, 2026; manuals dated Aug. 15, 2026)

Contents11 sections

Key takeaways

  • FirstHome and NextStep add 4% of the loan, or 5% under OHCS's Focused Demographics option. At or below 80% of AMI it is a 0% second mortgage forgiven after 30 years (4%) or 15 years (5%) ⁠4.
  • Above 80% of AMI, the same money is a monthly-payment second mortgage at the first-mortgage rate plus 1%, over 10, 20 or 30 years depending on income and option ⁠4.
  • FirstHome household income limits run from $110,300 (1-2 people) and $126,845 (3+) in most counties to $141,000 and $164,500 in Hood River County. Price caps run from $566,354 to $919,155 ⁠6⁠7⁠8.
  • Both loans need a 620 credit score (640 for manual underwriting), a debt-to-income ratio of 50% or less, an approved Flex Lending lender, and education from an OHCS homeownership center if you have not owned a home in three years ⁠3⁠2.
  • OHCS's separate Down Payment Assistance program pays up to $60,000 or 20% of the price through local nonprofits. Portland's DPAL pays up to $80,000-$100,000 inside city limits, subject to funding ⁠13⁠15.

Quick facts

Administered byOregon Housing and Community Services (OHCS); loans serviced by Idaho Housing and Finance Association ⁠2
Assistance size4% or 5% of the total loan (FirstHome, NextStep); up to $60,000 (OHCS DPA via nonprofits) ⁠4⁠13
Minimum credit score620 with automated underwriting; 640 for manual underwriting of FHA, VA, USDA or Section 184 loans ⁠3
Debt-to-income cap50%; VA loans up to 55% with AUS approval and two months of reserves ⁠3
First-time buyer ruleFirstHome only: no principal residence owned in 3 years. Targeted areas and one-time veteran exemption excepted ⁠2
Mortgage credit certificateNone offered; OHCS lists only FirstHome and NextStep ⁠12

Programs at a glance

Oregon first-time homebuyer grants programs
ProgramTypeHelp availableStatus
FirstHomeOregon Housing and Community Services (OHCS), Flex Lending Forgivable loan 4% (standard) or 5% (Focused Demographics) of the loan as a 0% second mortgage forgiven after 30 or 15 years at or below 80% AMI; repayable at the first-mortgage rate plus 1% above 80% AMI Open
NextStepOregon Housing and Community Services (OHCS), Flex Lending Forgivable loan Same 4% or 5% second mortgage, no first-time buyer rule or price cap, borrower income up to $125,000 Open
Down Payment Assistance (DPA) program, including Veteran DPAOHCS, delivered by awarded nonprofits and cities Grant or forgivable loan (terms set by each organization) Up to $60,000 or 20% of the price, whichever is less, for first-time or first-generation buyers at or below 100% AMI Through local offices
Down Payment Assistance Loan (DPAL)City of Portland, Portland Housing Bureau Forgivable loan Up to $80,000-$100,000 at 0%, half forgiven at year 15 and fully forgiven at year 30, inside Portland city limits Funds limited

OHCS does not hand down payment money to buyers directly. Approved private lenders make loans under its Flex Lending program, OHCS’s servicer buys them, and a second mortgage for down payment and closing costs comes attached ⁠12. FirstHome follows the federal Section 143 bond rules on first-time status, household income and purchase price ⁠2. NextStep drops the first-time rule and the price cap and replaces them with a flat $125,000 borrower income ceiling ⁠1⁠5. A third route, the OHCS Down Payment Assistance program, sends state funds to nonprofits and cities, and each one sets its own terms ⁠13. Oregon has no state-run mortgage credit certificate in 2026. OHCS’s homebuyer pages list only FirstHome and NextStep ⁠12.

FirstHome versus NextStep: who each one is for

FirstHome requires every borrower to be a first-time buyer, meaning no ownership or occupancy of a principal residence in the three years before closing. There are two exceptions. Buyers of a home in a federally targeted area are exempt. So is a veteran who has never had a mortgage revenue bond loan or mortgage credit certificate and signs form SFMP 7-VA at closing ⁠2. FirstHome counts the gross income of everyone 18 or older who will live in the home, not only the borrowers. Non-occupying co-borrowers and cosigners are not allowed. Federal recapture tax applies to FirstHome loans, and OHCS tells borrowers to ask a tax professional about it ⁠2.

NextStep is open to previous owners. It counts only the qualifying income of the borrowers on the loan, and it allows non-occupant co-borrowers and cosigners, whose income counts toward the $125,000 cap ⁠5. Under both products you may not own any other residential property at closing, and you must move in within 60 days ⁠2⁠5. Both offer 30-year fixed FHA, VA, USDA and FHA Section 184 loans, plus Fannie Mae HFA Preferred and Freddie Mac HFA Advantage conventional loans up to 97% loan-to-value ⁠1⁠3.

What the 4% or 5% second mortgage costs, by income tier

The assistance is a percentage of the total first-mortgage amount, including any upfront FHA premium or VA funding fee. On a $400,000 total loan, 4% is $16,000 and 5% is $20,000 ⁠4. You get 5% through the Focused Demographics option if you meet two of four tests: a household of four or more, a household member with a disability, a housing payment of 28% or more of income, or a sole head of household with at least one dependent ⁠2. The money can cover the full down payment, closing costs, prepaids and upfront mortgage insurance. There is no cash back, leftover funds up to 1% of the loan reduce principal, and the money cannot cover an appraisal gap ⁠4.

Your income tier, set against your county’s Fannie Mae AMI figure, decides the terms ⁠4⁠9:

Flex Lending second mortgage terms (FirstHome and NextStep manuals, Aug. 15, 2026)
Your income Standard 4% Focused Demographics 5%
At or below 80% AMI Forgivable: 0%, no payments, forgiven after 30 years Forgivable: 0%, no payments, forgiven after 15 years
Above 80% up to 120% AMI Repayable over 20 years at first-mortgage rate + 1% Repayable over 30 years at first-mortgage rate + 1%
Above 120% AMI Repayable over 10 years at first-mortgage rate + 1% No 5% option listed

The forgivable loan is not forgiven in stages. The full balance comes due if you sell, transfer, refinance or pay off the first mortgage, rent out any part of the home, stop living there, or default before the term ends ⁠4. OHCS warns that some options may not always be available depending on the market ⁠2.

Three county figures to check before you shop

OHCS publishes three separate county tables. The FirstHome household limits and price caps took effect June 17, 2026. The AMI tiers that set your second-mortgage terms took effect for locks from June 15, 2026 ⁠11.

2026 FirstHome limits and Flex Lending AMI tiers in selected counties
County FirstHome income, 1-2 / 3+ people (non-targeted) Targeted-area income, 1-2 / 3+ Price cap, non-targeted / targeted Forgivable tier (80% AMI) 120% AMI line
Multnomah $131,588 / $151,326 $153,960 / $179,620 $733,987 / $897,096 $102,640 $153,960
Washington, Clackamas, Yamhill $131,588 / $151,326 No targeted areas $733,987 $102,640 $153,960
Lane $110,300 / $126,845 $132,360 / $154,420 $566,354 / $692,211 $77,520 $116,280
Marion $110,300 / $126,845 $132,360 / $154,420 $566,354 / $692,211 $82,720 $124,080
Deschutes $137,075 / $157,636 $144,240 / $168,280 $752,036 / $919,155 $92,080 $138,120
Jackson $110,300 / $126,845 $132,360 / $154,420 $566,354 / $665,173 $78,480 $117,720
Benton $125,000 / $143,750 $150,000 / $175,000 $643,743 / $786,797 $100,000 $150,000
Hood River $141,000 / $164,500 No targeted areas $797,760 $99,360 $149,040

Scroll the table sideways to see every column.

Sources: ⁠6⁠7⁠8⁠9. NextStep has no price cap but caps borrower income at $125,000. In Benton, Clackamas, Columbia, Crook, Deschutes, Hood River, Jefferson, Multnomah, Washington and Yamhill counties, its middle tier stops at $125,000, so NextStep has no tier above 120% AMI there ⁠10.

Nineteen counties, including Lane, Marion, Jackson and Linn, use the floor income figures of $110,300 and $126,845, and all but Jefferson use the $566,354 floor price cap ⁠6⁠8. Eight counties are targeted in full: Baker, Clatsop, Coos, Harney, Lake, Union, Wallowa and Wheeler. There, FirstHome has no first-time rule, and income limits are $126,960 to $132,360 for 1-2 people ⁠7. Elsewhere it depends on the census tract: find the address’s tract with the FFIEC geocoder, then check OHCS’s tract list ⁠7. The forgivable-tier line ranges from $61,360 in Josephine County to $102,640 in the five Portland-metro counties ⁠9. A loan at or above 95% of the county price cap needs approval from the Housing Stability Council before OHCS buys it ⁠2.

Credit, debt and loan-type rules in the August 2026 manuals

Borrowers with a credit score need at least 620 on loans approved through automated underwriting. Borrowers with no score are eligible only with an automated “Approve” finding ⁠3. Manual underwriting is allowed only on FHA, VA, USDA and Section 184 loans. It requires a 640 score and two months of reserves after closing, and buyers with no credit score may also qualify this way ⁠3. Total debt-to-income may not exceed 50%. VA loans with an automated approval and two months of reserves may go to 55%. NextStep’s underwriting section sets the same limits ⁠3. Buyers under 80% of AMI get reduced mortgage insurance on conventional loans ⁠1.

Homebuyer education and the approved-lender rule

Anyone who has not owned a primary residence in the past three years must take homebuyer education with an OHCS-approved homeownership center ⁠12. Arrive Homeownership, formerly Portland Housing Center, is accepted. If you cannot get into a local class, OHCS accepts two online courses. One is Finally Home!, from Idaho Housing and Finance Association, which services OHCS’s loans. The other is NeighborWorks America’s Framework course ⁠2⁠12. The certificate is good for one year ⁠2.

Only Flex Lending approved lenders can make these loans. Their loan officers, assistants and processors must work in Oregon or within 50 miles of its border ⁠2. OHCS’s homebuyer page has a lender list you can search by county ⁠12. Each loan must close and be bought by Idaho Housing within 60 days of the rate lock ⁠2.

OHCS’s Down Payment Assistance program, run by local organizations

This program is separate from Flex Lending. It is funded by document recording fees and some cities’ construction excise taxes, and OHCS awards the money to organizations through competition. Twenty-five percent is reserved for Oregon veterans ⁠13. Buyers must be first-time or first-generation buyers at or below 100% of AMI. They must also finish first-time homebuyer education and meet with a certified housing counselor. The award can be up to $60,000 or 20% of the purchase price, whichever is less. In some cases the award is a grant or forgivable second lien; in others it must be repaid ⁠13⁠14. Under Veteran DPA, up to 10% of the award can pay for repairs the lender requires ⁠13. Flex Lending allows its assistance to be combined with other DPA ⁠1.

OHCS’s county search lists the awarded groups, such as DevNW (Benton, Clackamas, Lane, Lincoln, Linn, Marion, Polk), ACCESS (Jackson, Josephine), Rooted Homes (Deschutes) and, in the Portland area, the African American Alliance for Homeownership and Portland Housing Center ⁠13. On Oct. 20, 2026, DevNW listed Project Reinvest at up to $10,500 for first-time buyers up to 100% AMI, and veteran assistance of $30,000 to $60,000. Its loans carry no interest but are repaid with a share of appreciation when you sell or refinance ⁠14.

Portland’s Down Payment Assistance Loan

The Portland Housing Bureau’s DPAL is the largest city program we could verify. It pays up to $80,000-$100,000, depending on the funding source and where the home is. The loan is a 0% second mortgage with a 30-year term and a $500 origination fee ⁠15. Half is forgiven on the 15th anniversary, 3% of the original amount each year in years 16 through 29, and the rest at year 30, as long as you live in the home. Selling, refinancing or moving out makes the full balance due ⁠15. Depending on the funding source, at least 10% of the award is a grant held in a Home Improvement Grant Fund, to be spent on approved repairs within six months ⁠15.

To qualify, you must be a first-time buyer at or below 100% of Portland’s AMI (80% for some funding sources) and be judged mortgage-ready by a partner counselor. You also need a HUD-approved homebuyer class and at least $500 of your own money, and you can hold no more than $10,000 in liquid assets at closing ⁠15. Purchases in the Interstate Corridor Urban Renewal Area also require the N/NE Preference Policy. On the city’s March 2026 page, funding was “subject to availability.” Its partners are AAAH, Hacienda CDC, NAYA, PCRI and Portland Housing Center ⁠15.

Getting an Oregon Flex Lending loan, step by step

  1. Check your county figures

    Compare household income with the FirstHome limit and borrower income with the 80% AMI tier, and look up the tract ⁠6⁠7⁠9.

  2. Take homebuyer education

    Register with your county’s OHCS homeownership center, or take Finally Home! or Framework online. Keep the certificate, which is valid for one year ⁠2⁠12.

  3. Ask a nonprofit about extra DPA

    Ask the center whether OHCS DPA, Veteran DPA or a city loan such as Portland’s DPAL has funds in your county ⁠13⁠15.

  4. Pick a Flex Lending approved lender

    Use OHCS’s county search. The loan officer helps you choose FirstHome or NextStep ⁠12.

  5. Gather documents

    FirstHome needs three years of signed federal tax returns or IRS transcripts (one year in a targeted area or with the veteran exemption), 30 days of pay stubs dated within 120 days of closing, and income records for every adult in the home. Bring a DD-214 for the veteran exemption ⁠2.

  6. Lock and close within 60 days

    The lender locks the rate and assistance level and gets compliance approval from Hilltop Securities before closing. Within 10 days after closing, the lender sends OHCS the income documents for its household income review ⁠2.

  7. Keep your second-mortgage note

    You will need it to show forgiveness or payoff when you sell or refinance ⁠4.

If one lender declines you, you can apply with another approved lender, or work with a homeownership counselor on credit and debt first. For other states, see the first-time homebuyer grants page, and for other Oregon programs, see the Oregon page.

Verified resources

Where to apply

Sources

  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13
  14. 14
  15. 15

Was this information accurate? Report an error

First-Time Homebuyer Grants in other states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming. Compare all states.