Prepare for your home-buying journey and secure your dream property
with these streamlined, step-by-step first-time home buyer guides.
Buying your first home in Oregon is an exciting milestone, but it’s completely normal to feel a little overwhelmed by the process. Between house hunting and managing your finances, there is a lot to juggle. This guide is designed to help you navigate your path to homeownership. We’ll break down how to get your finances ready, explain what assistance programs might be available to you, and show you how to set a realistic budget before you start searching for your dream home.
You might be wondering, Do I actually count as a first-time homebuyer? The definition is broader than people expect, and knowing where you stand is the key to unlocking potential financial help.
According to the U.S. Department of Housing and Urban Development, you may qualify as a first-time homebuyer if you haven’t owned a primary residence in the last three years. Even if you previously owned a home with a former spouse, or if you’ve only owned a property that wasn’t permanently attached to a foundation — like certain manufactured homes — you may still be eligible.
Veterans also have special eligibility regardless of prior ownership. Taking a moment to check your status could open doors to valuable financial support programs.
One of the biggest first-time homebuyer benefits in Oregon is access to programs that make homeownership more affordable. Oregon Housing and Community Services offers several options for eligible low-income and moderate-income buyers. You can also explore this guide to Oregon first-time home-buying assistance programs to learn more about available loans, grants, and down payment help.
Depending on the program, you may qualify for grants or forgivable loans to help cover upfront costs. Some down payment assistance programs provide 3%-5% of the home loan amount, which can be used toward your down payment, closing costs, or other expenses. Oregon also offers a First-Time Home Buyer Savings Account that allows eligible savers to deduct qualifying contributions from their state taxable income, subject to an annual limit of $6,285 or up to $12,570 for those filing jointly.
Eligibility for local and state down payment assistance programs depends on factors such as your household income, household size, and the property’s location. In addition to statewide programs, some cities and local housing organizations offer their own assistance. For example, Portland has programs that provide deferred second mortgages of up to $100,000 for eligible low-income buyers.
Many programs require you to complete a homebuyer education course and meet with a certified housing counselor before closing.
Recommended: Oregon First-Time Home-Buying Assistance Programs
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Buying your first home involves several important steps, from reviewing your finances to hiring the right professionals to help you navigate the process. Understanding these steps before you begin can help you stay organized, make informed decisions, and avoid costly mistakes.
The following first-time homebuyer tips explain what you can expect throughout the journey.
Before you start browsing listings, take a step back and look at your bank accounts and cash flow. Buying a home involves more than just a down payment; it’s about making sure your monthly budget can comfortably handle a mortgage, taxes, insurance, and the occasional surprise repair.
Start by looking at your debt-to-income (DTI) ratio. This is simply the percentage of your monthly income that goes toward paying off debts. Lenders use this to see how much of a mortgage payment you can safely handle. Generally, you want to keep this number as low as possible: under 50% for government-backed loans, and under 43% for many conventional loans.
You can use a home affordability calculator to see what a monthly payment might look like on your salary. If you feel like your credit score could be stronger, take some time to review tips on establishing credit before you jump into the application process.
Creating a realistic budget can help you avoid financial stress later. In addition to the monthly costs noted above, you’ll also want to set aside money for one-time expenses, including moving, furniture, and appliances. If you’re relocating to Oregon from another state, look into the local cost of living so you know what budget items may increase after your move.
A word about down payments: Although many buyers aim for 20% of the purchase price to avoid private mortgage insurance (PMI), it’s not required. Depending on the loan program, eligible first-time homebuyers may qualify for a conventional loan with as little as 3% down. Some government-backed loan programs also offer no-down-payment options for qualified borrowers. A down payment calculator can help you estimate how much you’ll need to save based on your home’s purchase price and loan program.
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There isn’t just one way to pay for a home. Different mortgage programs have different rules about credit scores, down payments, and eligibility. Taking the time to learn about each type of mortgage loan will help you choose the path that best fits your goals.
Shopping around for a mortgage lender can help you find a loan that fits your budget and financial goals. Because lenders offer different interest rates and loan terms, it’s worth getting quotes from more than one before making a decision.
As you compare offers, pay close attention to the APR (annual percentage rate), not just the interest rate. The APR better reflects the true cost of borrowing by combining the interest rate with certain lender fees and discount points. However, it doesn’t include every closing cost you’ll pay when you finalize your mortgage.
Pricing isn’t the only factor to consider. Look for a lender with responsive customer experience, a straightforward application process, and a timeline that works for your home search.
People often use the terms prequalification vs. preapproval interchangeably, but they are very different steps in the home-buying process.
Working with a real estate agent can save you time and make the home-buying process easier. A buyer’s agent can help you narrow your home search, schedule showings, and guide you through each step of the transaction.
Real estate agents also have access to the multiple listing service database and can identify properties that meet your needs. They can help you evaluate homes, negotiate your offer, and manage the paperwork from contract to closing.
Before choosing an agent, it’s important to understand how real estate commission fees are changing. Your agent can explain how compensation works and what costs you may be responsible for as a buyer.
Once you’re ready to start your home search, combine online research with in-person home tours to find properties that meet your needs. As you compare homes, consider factors such as the neighborhood, school district, commute times, and nearby amenities.
As a first-time homebuyer, it’s also important to understand your rights under federal fair housing laws. Learning about housing discrimination can help you recognize unfair treatment during the home-buying process. If you believe you’ve experienced discrimination, keep records of your interactions and review the appropriate reporting resources.
Throughout your search, stay focused on the budget you established. Choosing a home you can comfortably afford can help you manage your monthly expenses after you move in.
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You’ve found the house! Now it’s time to make it yours. Your real estate agent will help you draft an offer that includes your price, your preferred closing date, and any contingencies (conditions that must be met for the sale to go through).
If the seller accepts, you’ll enter a purchase contract. At this stage, you’ll likely pay “earnest money” — a deposit that shows the seller you’re serious. This money is held securely in an account and is usually applied toward your final closing costs.
Don’t be afraid to negotiate. Depending on the market, you might be able to ask the seller to cover some of your closing costs or handle certain repairs. Your agent can guide you through the back-and-forth.
A home inspection can identify potential problems before you finalize your purchase. During the inspection, a licensed pro evaluates the home’s overall condition, including major systems and structural components.
The inspection typically covers the roof, foundation, plumbing, electrical system, heating and cooling systems, and other key features of the home. If the inspector uncovers significant issues, you may be able to negotiate repairs, request seller concessions, or in some cases, cancel the contract if your inspection contingency allows.
Home inspection costs vary by location, property size, and the scope of the inspection, so it’s a good idea to compare quotes from several qualified inspectors. The standard cost for this service in Oregon usually runs between $300 and $600. Reviewing the inspection report carefully can help you understand the home’s condition and prepare for future repair and maintenance costs before closing.
Unlike a home inspection, which evaluates a property’s condition, an appraisal determines its fair market value. Your lender requires an appraisal to confirm that the home’s value supports the amount you’re borrowing.
The lender orders the appraisal, and a licensed appraiser evaluates the property based on its condition, features, location, and recent sales of comparable homes. Buyers typically pay for the appraisal as part of their closing costs. The exact cost varies by location and property type, typically ranging from $300 to $600.
After the appraisal is complete, your lender reviews the report as part of the mortgage approval process. An accurate appraisal helps protect both you and your lender before the sale is finalized.
The final stage of buying a home involves completing the remaining paperwork, paying your closing costs, and officially transferring ownership. Before closing, you’ll need to provide proof of homeowners insurance including appropriate coverage for your property and regional environmental hazards, such as wildfires.
You will receive a closing disclosure at least three business days before closing. Review this document carefully to confirm your loan terms, closing costs, and other transaction details. Before signing, you’ll also complete a final walk-through to make sure the home’s condition matches your expectations and that any agreed-upon repairs have been completed.
At the closing appointment, you’ll sign your mortgage documents and pay any remaining upfront costs. The title company and escrow agent will coordinate the transfer of ownership, while title insurance helps to protect you from covered title issues. Once all documents are signed and the transaction is complete, you’ll receive the keys to your new home. Congrats!
An online calculator can be a big help in comparing home equity loan rates and terms. And it’s not the only calculator you’ll find helpful during your home equity loan process:
Enter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Staying organized can make the transition into your new home as smooth as possible. Use this first-time homebuyer checklist to handle important tasks during this time:
Following these first-time homebuyer tips and advice can help you feel more comfortable in your new home and prepare for the responsibilities of homeownership.
Transitioning to homeownership in Oregon is a big move, but it doesn’t have to be a stressful one. By planning ahead, keeping your budget realistic, and tapping into the right assistance programs, you can make the entire process much smoother.
Buying your first house is a journey, not a sprint. Take it one step at a time, lean on the professionals helping you, and move forward with the confidence that you’re setting yourself up for success in your new home.
The credit score needed as a first-time homebuyer depends on the type of mortgage you choose. Many conventional loans require a minimum credit score of 620, while FHA loans allow eligible borrowers to qualify with a score of 580 and a 3.5% down payment. Borrowers with credit scores from 500-579 may also qualify for an FHA loan if they make a 10% down payment.
The amount of money you need to start buying a house depends on the loan program you choose and your overall financial situation. Many conventional loans require as little as 3% down, but you’ll also need money for closing costs, which typically range from 2%-5% of the mortgage amount. Setting aside an emergency fund with three to six months of living expenses can also help you manage unexpected costs after you move in.
Common first-time homebuyer mistakes include waiting too long to check your credit, skipping mortgage preapproval, and obtaining only one lender quote. Underestimating closing costs and ongoing home maintenance expenses can also strain your budget. Opening new credit accounts or waiving a home inspection before closing may delay your purchase or create unexpected financial risks.
The rules for qualifying as a first-time homebuyer vary by loan and assistance program, but many programs define a first-time homebuyer as someone who has not owned a principal residence during the previous three years. Some programs also require you to live in the home as your primary residence and complete a homebuyer education course before receiving certain benefits or assistance.
Qualifying for first-time homebuyer programs in Oregon depends on the program you choose and whether you meet its eligibility requirements. For certain Oregon Housing and Community Services programs, eligible buyers typically need a minimum credit score of 620, must meet household income and purchase price limits, complete an approved homebuyer education course and work with a participating lender.
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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
This article is not intended to be legal advice. Please consult an attorney for advice.Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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