Oregon First-Time Home Buying Assistance Programs & Grants

Who Is Considered a First-Time Homebuyer in Oregon?

The answer to that question is broader than it might seem. For most programs offered in Oregon and elsewhere, applicants are considered first-time homebuyers if they haven’t owned a home for the past three years.

However, in some programs, you may qualify even if you have owned a home within that time frame. So it can be wise to do your research (with this guide’s help) and check out the details on various options, both from OHCS and other organizations.

💡Quick Tip: You deserve a more zen mortgage. Look for a mortgage lender who’s dedicated to closing your loan on time.

Other Oregon Homebuyer Programs by Location

If you already know which Oregon city or county you hope to make your home, you also may want to research local buyer-assistance programs.

If you can’t find assistance in your chosen location, it may be helpful to check occasionally for new offers. Some first-time homebuyer programs base their opportunities (and deadlines) on the funds they expect to become available. When their funds run out, they may press pause.

Some local programs include:

NeighborWorks Umpqua Down Payment Assistance: Coos, Curry, Douglas, and Josephine Counties

With the NeighborWorks Umpqua Veterans Down Payment Assistance (DPA) program, eligible first-time homebuyers in Coos, Curry, Douglas, and Josephine counties may qualify for grants to help with their down payment and closing costs. First generation home buyers may be eligible for additional funding.

Qualifying applicants must have lived in Oregon for 12 months or more, must fall below income limits for their household size and county, and must complete a homebuyer education course and participate in two financial counseling sessions before the date of closing on the home.

The NeighborWorks Umpqua DPA Program is currently on hold pending funding, so be sure to check back regularly. For now, you can check out the homebuyer class and coaching, get more information on benefits and requirements, and add your name to a list of interested Oregon residents by going to the programs web page.

NeighborImpact First Time Homebuyer Down Payment Assistance Program: Deschutes, Jefferson, and Crook County

Residents of Deschutes, Jefferson, and Crook County who are lower-to-mid income and struggling to find an affordable home may want to check out this program that is available to first-time homebuyers.

This DPA program offers qualified applicants the opportunity to access a 30-year loan up to 20% of a home’s sale price, with the purchaser responsible for a down payment of just a 1%. In addition to residence and first-time homebuyer qualifications, income limits based on household size apply, and you must have a maximum 55% debt-to-income ratio.

You can get more information and an application on the program’s web page .

Rogue Valley Association of Realtors (RVAR)/Oregon Association of Realtors (OAR) HOME Foundation First-Time Homebuyer Assistance Program: Jackson and Josephine Counties

The RVAR/OAR HOME Foundation Buyers Assistance Grant offers first-time buyers purchasing a primary residence in Jackson or Josephine counties up to $2,500 toward their down payment, closing costs, and/or prepaid items. Homebuyers must contribute a minimum of $500 of their own funds toward the purchase.

This is a non-repayable grant offered through the Access Building Community. Applicants must take an in-person or online homebuyer education course, meet with an Access Certified Homeownership Counselor within the last 18 months, and meet household income limits and other requirements.

For information, you can check out the Access web page or call (541) 774-4305.

How to Apply to Oregon Programs for First-Time Homebuyers

Links to participating lenders and other contacts are listed under each program. These can help you get on the path to finding ways to make first-time homeownership more affordable.

In several cases, phone numbers are also supplied above, if you prefer that form of contact.

💡 Quick Tip: Not to be confused with prequalification, preapproval involves a longer application, documentation, and hard credit pulls. Ideally, you want to keep your applications for preapproval to within the same 14- to 45-day period, since many hard credit pulls outside the given time period can adversely affect your credit score, which in turn affects the mortgage terms you’ll be offered.

Federal Programs for First-Time Homebuyers

Need a helping hand in terms of how much cash you put down and/or securing a home loan? Several federal government programs are designed for people who have low credit scores or limited cash for a down payment. Although most of these programs are available to repeat homeowners, like state programs, they can be especially helpful to people who are buying a first home or who haven’t owned a home in several years.

The mortgages are usually for single-family homes, two- to four-unit properties that will be owner occupied, approved condos, townhomes, planned unit developments, and sometimes manufactured homes. Reviewing a first-time homebuyer guide can help you understand what lies ahead in the process as you dig into your options.

Federal Housing Administration (FHA) Loans

The FHA, which is part of the U.S. Department of Housing and Urban Development (HUD), insures mortgages for borrowers with lower credit scores. Here are some important facts you should know:

•   Homebuyers choose from an approved-lenders list of institutions participating in the FHA loan program. Loans have competitive interest rates and require a down payment of 3.5% of the purchase price for borrowers, who typically need FICO® credit scores of 580 or higher. Those with scores as low as 500 must put at least 10% down.

•   Limits for FHA loans in 2025 now range from $524,225 for single units to $1,008,300 for four-unit properties. Higher-cost areas tend to have even higher limits.

•   In addition to examining your credit score, lenders will look at your debt-to-income ratio (DTI, your monthly debt payments compared with your monthly gross income). A DTI of up to 57% is allowed for FHA loans in some cases, vs. a typical 45% maximum for a conventional loan.

•   Gift money for the down payment is allowed from certain donors and will be documented in a gift letter for the mortgage.

•   FHA loans always require mortgage insurance premiums (MIP): This includes an upfront fee of 1.75% of the base loan amount, usually rolled into the loan. Borrowers must carry annual premiums for the term of the loan. As of 2025, new homebuyer monthly MIP is 0.15% to 0.75%. A down payment of at least 10% will allow the possibility of the removal of mortgage insurance after 11 years. For a $300,000 mortgage balance, upfront MIP would total around $5,250 and monthly MIP, at a rate of 0.55%, would be $137.

To learn more about options, including FHA loans for refinance and rehab of properties, read up on FHA requirements, loan limits, and rates.

Freddie Mac Home Possible Mortgages

If you are a low- or very low-income borrower, you may make an affordable 3% down payment on a Home Possible^® mortgage. These loans allow various sources for down payments, including co-borrowers, family gifts, employer assistance, secondary financing, and sweat equity.

The Home Possible mortgage is for buyers with credit scores of 660 and up. Once you’ve paid off 20% of the loan, the Home Possible mortgage insurance becomes unnecessary and will be canceled, which will lower your mortgage payments.

Fannie Mae HomeReady Mortgages

Fannie Mae HomeReady^® Mortgages allow low-income borrowers to make down payments as low as 3%. Applicants typically need a credit score of 620 or higher; pricing may be better for credit scores of 680 and up. Like the Freddie Mac program, HomeReady loans allow flexibility for down payment financing, including gifts and grants.

For income limits, a comparison to an FHA loan, and other information, go to this Fannie Mae site .

Fannie Mae Standard 97 LTV Loan

The conventional 97 LTV loan is for first-time homebuyers of almost any income level with a credit score of at least 620 and qualifying debt-to-income criteria. The 97% loan-to-value mortgage requires 3% down. Borrowers can get down payment and closing cost help from third-party sources.

Department of Veterans Affairs (VA) Loans

Active members of the military, veterans, reservists, and surviving spouses who are eligible can apply for loans backed by the Department of Veterans Affairs. These VA loans are for active members of the military, veterans, reservists, and surviving spouses who are eligible. They can be used to buy, build, or improve homes, have lower interest rates than most other mortgages and don’t require a down payment. Most borrowers pay a one-time funding fee that can be rolled into the mortgage..

Another VA loan advantage is that they do not require PMI for borrowers who make a down payment of less than 20%. And they have more flexible credit score requirements. In some cases, even those who have previously been in foreclosure or bankruptcy can qualify.

Borrowers applying for a VA loan will need a Certificate of Eligibility from the VA. It can be a good move to review a guide to qualifying for a VA loan as a first step in the process.

Native American Veteran Direct Loans (NADLs)

Eligible Native American veterans and their spouses may use these no-down-payment loans to buy, improve, or build a home on federal trust land. Unlike VA loans listed above, the Department of Veterans Affairs is the mortgage lender on NADLs. The VA requires no mortgage insurance, but it does charge a funding fee. You can learn more by emailing [email protected].

US Department of Agriculture (USDA) Loans

No down payment is required on these loans for moderate-income borrowers, which are guaranteed by the USDA in specified rural areas. Borrowers pay an upfront guarantee fee and an annual fee that serves as mortgage insurance.

The USDA also directly issues loans to low- and very low-income people. Check out this USDA website for eligibility requirements.

HUD Good Neighbor Next Door Program

This program helps workers as police officers, firefighters, emergency medical technicians, and teachers qualify for mortgages in the areas they serve. Borrowers can receive 50% off a home in what HUD calls a “revitalization area.” They must live in the home for at least three years.

Visit the HUD program page for more information.

First-Time Homebuyer Stats for 2025

Ever wonder where you fit amid the mix of buyers who are out there shopping for their first home or first in a while? Here are some stats:

•   Percentage of buyers nationwide who are first-time buyers: 24%

•   Median age of first-time buyers nationwide: 38

•   Median down payment for first-time buyers nationwide: $84,800

•   Average credit score in Oregon: 732

•   Median listing price for Oregon homes: $540,300

•   Average home price per square foot in Oregon: $299

Additional Financing Tips for First-Time Homebuyers

In addition to federal and state government-sponsored lending programs, there are other financial strategies that may help you as a homeowner in Oregon:

•  Traditional IRA withdrawals. The IRS allows qualifying first-time homebuyers a one-time, penalty-free withdrawal of up to $10,000 from their IRA if the money is used to buy, build, or rebuild a home. A first-time homebuyer, for the purposes of IRA withdrawals, is someone who has not owned a principal residence in the last two years. If you’re married and your spouse has an IRA, they may also make a penalty-free withdrawal of $10,000 to purchase a home. The downside, of course, is that large withdrawals may set your retirement savings back considerably.

•  Roth IRA withdrawals. Because Roth IRA contributions are made with after-tax money, the IRS allows tax- and penalty-free withdrawals of contributions for any reason as long as you’ve held the account for five years. With most plans, you can borrow up to 50% of your 401(k) balance, up to $50,000, within a 12-month period without incurring taxes or penalties. With accounts held for less than five years, however, homebuyers will pay income tax on earnings withdrawn.

•  401(k) loans. If your employer allows borrowing from the 401(k) plan that it sponsors, you might want to consider taking a loan against the 401(k) account to help finance your home purchase. With most plans, you may be able to borrow up to 50% of your 401(k) balance, as much as $50,000, within a 12-month period and incur no taxes or penalties. You pay interest on the loan, which is paid into your 401(k) account. You usually have to pay back the loan within five years, but if you’re using the money to buy a house, you may have up to 15 years to repay.

•  State and local down payment assistance programs. Usually offered at the regional or county level, these programs provide flexible second mortgages for first-time buyers looking into how to afford a down payment.

•  The mortgage credit certificate program. First-time homeowners and those who buy in targeted areas can claim a part of their mortgage interest as a tax credit, usually up to $2,000. Any additional interest paid can be claimed as an itemized deduction. To qualify for this credit, you must be a first-time homebuyer, live in the home, and meet income and purchase price requirements — these vary by state. If you refinance, the credit disappears, and if you sell the house before nine years, you may have to pay some of the tax credit back. There are fees associated with applying for and receiving the mortgage credit certificate that vary by state. Often the savings from the lifetime of the credit can outweigh these fees.

•  Your employer. Employers may offer access to lower-cost lenders and real estate agents in the area where they are located, as well as home buying education courses.

•  Your lender. Always ask your lender about any first-time homebuyer grant or down payment assistance programs available from the state government, nonprofit, and community organizations in your area.

The Takeaway

If you can qualify for a first-time homebuyer program in Oregon, you may be able to reduce your costs when purchasing a home, whether that means making your mortgage, down payment, or other expenses more affordable. Whether you qualify or not, it may also be worthwhile to research what other mortgage offers are available and see how costs compare.

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