The biggest barrier to homeownership for many is the lack of a down payment, particularly putting down 20% of the sales price, which removes the additional cost of mortgage insurance. The problem is particularly pronounced for communities of color, veterans, and those on lower incomes. OHCS supports homebuyers who wish to purchase a new home with down payment assistance in two ways:
- OHCS helps fund organizations’ down payment assistance programs.
- OHCS provides two lower-than-market rate loan products through OHCS’ Flex Lending program that can be paired with down payment assistance to pay for up to 100% of the closing costs.
Down Payment Assistance program
The Down Payment Assistance (DPA) program awards funds on a competitive basis to organizations throughout the state to create, continue, and expand their existing down payment assistance programs. The program is funded by document recording fees—assessed by state and local government agencies when legally recording deeds, mortgages, and documents related to home loans—and certain jurisdictions’ Construction Excise Taxes, which are assessed on building or updating residential real property. A portion of these funds is distributed to OHCS to expand the state's supply of affordable homeownership for families and individuals of low to moderate incomes, particularly communities of color. Twenty-five percent of these funds are reserved specifically for Oregon veterans.
Benefits
The program provides closing costs and down payment assistance to eligible first-time and first-generation homebuyers who are at or below 100% of area median income (AMI). The maximum amount of DPA funds available to each eligible homebuyer is up to $60,000 or 20% of the purchase price, whichever is less, depending on the specific program and eligibility requirements. In some instances, DPA funds are provided in the form of a grant or forgivable second lien.
Veterans DPA
Eligible veterans and their families at or below 100% of area median income can qualify for up to $60,000 depending on specific program guidelines. In addition, an amount up to 10% of the down payment assistance can be used for lender-required repairs allowing the veteran household to retain their funds for future needs. Each awarded organization has specific program guidelines. Contact them directly for qualifications and specific eligibility criteria.
Eligibility
Homebuyers must be first-time and/or first-generation homebuyers at or below 100% of area median income. They must also complete First-Time Homebuyer Education and meet with a certified housing counselor to be eligible for down payment and/or closing cost assistance.
Organizations offering down payment assistance
Please contact the awarded organization serving your area for their program availability and requirements.
Enter your county in the search box below to find organizations offering down payment assistance.
*These organizations can provide the required Homebuyer Education in addition to our
partnering Homeownership Centers.
OHCS lending products paired with down payment assistance
OHCS’ Flex Lending down payment assistance program, offered in collaboration with approved mortgage lenders, supports Oregonians in purchasing homes. This assistance pairs a fixed-rate first mortgage with a second mortgage, which can be either a silent second lien with no payments and no interest or an amortizing second lien. These DPA funds can cover up to 100% of the borrower’s cash requirements at closing, including the down payment, closing costs, pre-paid items, upfront mortgage insurance, and other related loan expenses.
Learn more about Flex Lending