Oregon First-Time Home Buyer Loans and Grants

Buying a home in Oregon can be challenging but if you take advantage of OR first time home buyer grants and down payment assistance you may reap the benefits of homeowernship. Oregon’s housing market, with a median home price of $508,100 in January 2025, presents significant challenges for first-time home buyers, particularly in high-cost areas like Portland, Bend, and Eugene. The median down payment was approximately $30,000 in 2024, a substantial barrier for many.

Oregon still provides a wide variety of state, local, and federal programs providing down payment assistance (DPA), grants, and low-interest mortgage loans to make homeownership more accessible. We published this guide to educate consumers Oregon’s top 2025 first-time home buyer programs, includes reference links for state and local initiatives, and presents two case studies to illustrate their impact.

Top Oregon First-Time Home Buyer Programs in 2025

The Oregon Housing and Community Services (OHCS) and the Oregon Bond Residential Loan Program are the primary providers of first-time home buyer programs, offering 30-year fixed-rate home loans matched with DPA and grants. Most Oregon mortgage lenders requires a minimum credit score of 620 (640 for some conventional loans), a debt-to-income (DTI) ratio of 45–50%, completion of a HUD-approved homebuyer education course, and a minimum borrower contribution of $500–$1,000. Income limits range from $73,100–$141,000, and purchase price limits vary from $345,000–$750,000 by county. The maximum loan amount is $806,500.

1. OHCS RateAdvantage Home Loan

The RateAdvantage Home Loan offers the lowest fixed-rate mortgages for first-time buyers, supporting FHA, USDA, or conventional loans with a 20% down payment for conventional options. It maximizes purchasing power with low monthly payments. Income and purchase price limits apply, and a homebuyer education course is required. Details at OHCS RateAdvantage.

2. OHCS CashAdvantage Home Loan

The CashAdvantage Home Loan provides below-market interest rates and a 3% grant for closing costs, applicable to FHA, USDA, or conventional loans (20% down for conventional). The grant does not require repayment, but the interest rate is slightly higher than RateAdvantage. A 620 credit score and homebuyer education are required. Learn more at OHCS CashAdvantage.

3. OHCS Down Payment Assistance (DPA)

OHCS awards funds to local organizations for DPA, offering up to $60,000 or 20% of the purchase price as a grant or forgivable second mortgage for first-time buyers. Eligible buyers must contribute $500, complete a homebuyer education course, and meet income limits (80–120% AMI). Contact a participating lender for specifics, as terms vary. Details at OHCS DPA.

4. OHCS Flex Lending Program

The Flex Lending Program provides low-rate mortgages and up to $2,500 in grants for down payment or closing costs for first-time buyers contributing at least $500. It requires a homebuyer education course and is available through participating lenders. Income limits (80% AMI) apply. See OHCS Flex Lending.

5. Oregon First-Time Home Buyer Savings Account

Offered by the Oregon Department of Revenue, this program allows tax deductions on savings up to $5,000 annually ($10,000 for joint filers) for down payments, closing costs, or related fees. Savings can be deducted for up to 10 years, reducing taxable income. Details at Oregon Department of Revenue.

6. Oregon Department of Veterans’ Affairs (ODVA) Home Loan

The ODVA Home Loan offers fixed-rate conventional mortgages for Oregon veterans, active military, or reservists, with up to 95% loan-to-value (LTV). PMI is required for loans above 80% LTV. The program can be used up to four times and does not require first-time buyer status. Income and purchase price limits apply. Learn more at ODVA Home Loan.

Local Oregon First-Time Home Buyer Incentives

1. Portland Down Payment Assistance Loan (DPAL)

The Portland Housing Bureau (PHB) offers up to $80,000–$100,000 as a 0% interest, 30-year deferred second mortgage for first-time buyers with incomes at or below 100% AMI (or 80% for some funds). A $500 contribution and HUD-approved education are required. Ten percent of the award is a grant for home improvements. The home must be in Portland. Contact community partners like HomeSight. Details at Portland DPAL.

2. Springfield Home Ownership Program (SHOP)

Springfield provides up to $10,000 in DPA as an interest-free, deferred loan for first-time buyers with incomes at or below 80% AMI, purchasing within city limits. The loan is repaid upon sale or refinance. A homebuyer education course is required. Contact DevNW at Springfield SHOP.

3. RVAR/OAR HOME Foundation Buyers Assistance Grant

The Rogue Valley Association of Realtors (RVAR) and Oregon Association of Realtors offer up to $2,500 in non-repayable grants for first-time buyers in Jackson or Josephine counties. Buyers must contribute $500, complete a homebuyer education course, and meet income limits ($73,100 for Jackson, $59,000 for Josephine). Contact ACCESS at RVAR/OAR HOME Grant.

4. NeighborWorks Umpqua Veterans Down Payment Assistance

This program offers up to $15,000 in grants for first-time buyers who are veterans in Coos, Curry, Douglas, Klamath, or Lake counties. Income limits (80% AMI) and a HUD-certified education course apply. Contact NeighborWorks Umpqua.

5. Community Connection of Northeast Oregon IDA

This Individual Development Account (IDA) matches $1 saved with $5 (up to $10,000) for first-time buyers in Northeast Oregon. Income limits and homebuyer education apply. Contact Community Connection.

6. DevNW Down Payment Assistance

DevNW offers $5,000–$10,000 in DPA as an interest-free, deferred loan with shared appreciation for first-time buyers in Benton, Clackamas, Lane, Lincoln, Linn, Marion, or Polk counties. Income limits (80–100% AMI) and a Homebuying Foundations course are required. Details at DevNW DPA.

7. Corvallis Down Payment Assistance

Corvallis partners with DevNW to offer saving grants, matching funds for down payments for first-time buyers. Income limits (80% AMI) and a homebuyer education course apply. Contact DevNW at Corvallis DPA.

8. Federal Home Loan Bank of Des Moines Home$tart Program

This program provides up to $7,500 in grants for closing costs or down payments for first-time buyers with incomes at or below 80% AMI. A signed purchase agreement and homebuyer education are required. Contact a participating lender at FHLB Home$tart.

Case Study 1: The Thompson Family in Portland

The Thompsons, a family of three earning $68,000 annually, aimed to buy a $400,000 condo in Portland’s North Interstate Corridor. As first-time buyers, they qualified for the Portland DPAL, receiving an $80,000 deferred loan (0% interest, 30-year term), with $8,000 as a home improvement grant. They paired this with an OHCS CashAdvantage Home Loan (FHA, 3.5% down, $14,000) and a $12,000 OHCS DPA grant (3% of the purchase price). The New American Funding Pathway added $6,000 for closing costs. After contributing $500 and completing a HUD-approved course via Portland Housing Center, they closed in March 2025. The $98,000 in assistance covered their down payment and $5,000 in closing costs, with no immediate repayments, enabling them to afford a home in a high-cost city.

Case Study 2: Michael Rivera in Medford

Michael, a veteran earning $52,000, wanted a $300,000 home in Jackson County. Through the ODVA Home Loan, he secured a conventional mortgage with a 5% down payment ($15,000) and PMI. The RVAR/OAR HOME Foundation Grant provided $2,500, and the OHCS Flex Lending Program added a $2,500 grant, covering closing costs. The NeighborWorks Umpqua Veterans DPA contributed $15,000, fully covering his down payment. After contributing $500 and completing a HUD-certified course via ACCESS, Michael closed in April 2025. The $20,000 in grants eliminated upfront costs, leveraging his veteran status for favorable terms and allowing him to settle in Medford.

Helpful Tips for Oregon First-Time Home Buyers

1. Get Pre-Approved: Work with an OHCS-approved lender to determine your budget and strengthen offers. Find lenders at OHCS Find a Lender.
2. Combine Programs: Pair OHCS’s DPA or Flex Lending grants with local programs (e.g., Portland DPAL, RVAR/OAR) or Chenoa Fund for maximum assistance, ensuring compatibility.
3. Complete Education Courses: HUD-approved courses like eHome America ($75) or ACCESS’s “Realizing the American Dream” are required. See eHome America or ACCESS Homeownership.
4. Check Targeted Areas: First-time buyer requirements may be waived in designated areas like parts of Portland or Medford. Check OHCS Targeted Areas.
5. Monitor Credit and DTI: Aim for a 620+ credit score and DTI below 45–50%. Use LendingTree Spring for credit monitoring.

Oregon’s home prices rose 5% year-over-year in 2024, with Portland’s median at $542,000. Competitive markets require quick action, and DPA funding, like Springfield’s SHOP, can be limited. Many DPA loans (e.g., Portland DPAL) require repayment upon sale or refinance, while grants like RVAR/OAR are non-repayable but have strict income caps. USDA loans are restricted to rural areas, and VA/ODVA loans require military eligibility. Buyers should verify funding availability and review repayment terms, as some programs pause when funds are exhausted.

Oregon’s 2025 first-time home buyer programs, led by OHCS’s RateAdvantage, CashAdvantage, and Flex Lending, alongside local initiatives in Portland, Springfield, and Medford, provide critical support for overcoming high upfront costs. By combining these with federal options like FHA, VA, or HomeReady loans, buyers can minimize out-of-pocket expenses. Work with approved lenders, complete required education, and act quickly to secure limited funds, turning the dream of homeownership into reality in Oregon’s competitive market.