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
Pros
- Low interest rates
- Flexible credit score guidelines
- Cash assistance option
Cons
- Requires mortgage insurance
- Borrowers might be subject to a recapture tax when home is sold
- Has strict work history requirements
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
Pros
- Can be used with other down payment assistance programs
- The loan can be forgivable, depending on the income of the borrowers
- Can be used for townhomes, condominiums and planned unit developments
Cons
- Cannot be used for multi-family homes
- Income limit is the same statewide
- Requires the borrower to take a first-time homebuyer education course
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
Pros
- Provides homebuyer education
- Can provide one-on-one counseling
- Takes homebuyers through the entire homebuying process
Cons
- Costs $99 to register
- Additional fees for other services
- No guarantee that it can provide down payment assistance to a borrower
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
Pros
- Provides foreclosure prevention services
- Offers homeownership workshops
- Provides free services
Cons
- Only available in Baker, Grant, Union and Wallowa counties
- Doesn’t offer mortgage loans directly
- Limited online resources
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
Pros
- 0% interest loans
- Deferred payments
- Loans can be up to $10,000
Cons
- Only available in Coos, Curry, Douglas and Josephine counties
- Not available for multi-family homes
- Can only be used for primary residences
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
Pros
- Available in every county
- Interest rates of 2% or less
- Closing costs can be financed
Cons
- Loans are not forgivable
- Repayment begins immediately after closing
- Can only be used for primary residences
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
Pros
- Can refer borrowers to approved mortgage lenders
- Some loans are forgivable
- Can be used for up to 100% of the borrower’s cash requirement to close
Cons
- Funds may not always be available
- Program requirements vary
- Go through a secondary organization to receive assistance
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
Pros
- Down payments as low as 3.5%
- Competitive interest rates
- Lower credit score requirement than most conventional mortgages
Cons
- Loan limits based on the area’s median cost of living
- Requires borrowers to carry private mortgage insurance
- Strict set of criteria that a property must meet to qualify
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
Pros:
- Provides advice and assistance to borrowers
- Publishes current mortgage rates on its website
- Online application process
Cons:
- Does not have physical locations
- Doesn’t publish lender fees online
- Requires borrowers to agree to a hard credit check for personalized rates
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
Pros
- Low interest rates
- Can be used again if borrowers buy another home in the future
- No private mortgage insurance requirement
Cons
- VA Funding Fee
- Some lenders of VA loans require down payments
- Not as attractive as conventional mortgages to most sellers
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
Pros:
- Has some physical branch locations for in-person support
- 24/7 customer support
- Online or in-person application process
Cons:
- Fees, including an origination fee
- Customized rates are not available online
- May not offer the lowest interest rates
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
Pros
- Tend to have lower interest rates than conventional mortgages
- No down payment requirement
- Eligible to be refinanced with another USDA loan later
Cons
- Can’t use a cash-out refinance if you decide to refinance in the future
- Household income limits
- Only available in USDA-specified rural areas
Best National USDA Lender: CrossCountry Mortgage
Available in: CA, CO, CT, DC, FL, GA, IL, MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN, TX, VA, WA
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
Pros:
- Offers down payment assistance to eligible first-time homebuyers
- Offers USDA Streamline Refinance
- Offers USDA Renovation loans
Cons:
- Mortgage rates are not available on the website
- No live chat customer support
- No online quotes
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
- Research and identify the program you want to apply for
- Find a mortgage lender
- Follow the instructions to apply for the program
- Submit documentation as required to your lender
- 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
Is the first-time homebuyer program worth it?
It depends on the program and your personal financial situation, but in most cases, first-time homebuyer programs are worth looking into.
Does Oregon have a first-time homebuyer tax credit?
Yes, if you use a designated first-time homebuyer savings account.
How much do first-time homebuyers have to put down in Oregon?
This depends on the program – you may have to make a minimum down payment, pay a funding fee, or both.
Related content: Best Oregon Home Insurance
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