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.

By Susan Guillory

(Last Updated – 06/205)

The Mount Rushmore State saw a 2.3% increase in home prices from June 2024 to June 2025, according to Zillow data. South Dakota may appeal to both seasoned and first-time homebuyers, in part because of its low cost of living compared to other parts of the country. The median home price in the state was $334,000, as reported by Redfin, a real estate brokerage that tracks trends.

You’ll be most successful if you have a game plan for buying a home in South Dakota. This home buying guide will show you state and federal payment assistance for the first-time homebuyer in South Dakota.

Recommended: First Time Homebuyer Guide

6 South Dakota Housing Programs for First-Time Homebuyers

If you lack the money for a down payment or aren’t sure how you will afford a home mortgage loan, programs in the state may be able to provide assistance.

1. South Dakota Housing First-Time Homebuyer Program

The South Dakota Housing Development Authority has a first-time homebuyer program that provides low-interest, fixed-rate loans to prospective homeowners, including those who are veterans.

To qualify, you must meet criteria including household income and purchase price limits. The current price cap for first-time homebuyers is $410,000.

2. South Dakota Housing Repeat Homebuyer Program

SD housing also has a repeat homebuyer program that helps repeat homebuyers get the keys to their next home more easily and for less out-of-pocket expense.
The program lets you buy your next home at a low fixed-rate, offers down payment and closing cost assistance, and reduces mortgage insurance premiums.

You’ll need to meet income limits and have a credit score of 620 or higher. The current price cap for first-time homebuyers is $460,000. See your Participating Lender for complete details.

3. South Dakota Downpayment Assistance

The agency also provides down payment and closing cost assistance in the form of a 0% interest, 30-year second mortgage, due upon the sale of the property or satisfaction of the first mortgage. Borrowers receive 3% or 5% of the purchase price in assistance.

4. Grow South Dakota Home Mortgage Loans

Grow South Dakota also offers home ownership programs for new or existing homes in South Dakota through this direct loan program. Loans are available for up to $300,000.

5. Grow South Dakota Down Payment/Closing Cost Assistance

Grow South Dakota also provides down payment and closing cost assistance in the form of a no-interest deferred loan. Currently, all funds for the down payment program have been committed, but check back.

6. Homes Are Possible, Inc. Closing Cost Assistance

Another organization that provides help with closing costs is Homes Are Possible, Inc. (HAPI) in Northeast South Dakota. The organization operates in 22 counties, offering a $5,000 Down Payment/Closing Cost non-forgivable loan to cover expenses such as loan origination fees, a title search and insurance, a survey, an appraisal, and closing fees.

Income limits apply and you must complete HAPI’s Home Buyer Education course before you close.

How to Apply to South Dakota Programs for First-Time Homebuyers

As you explore different types of mortgage loans and first-time homebuyer programs, make a list of qualifications and requirements. Then, when you’ve chosen the best first-time homebuyer program, you’ll be prepared to apply.

For South Dakota Housing Development Authority programs, contact one or more participating lenders .

To apply for a Grow South Dakota mortgage or closing cost assistance, first check this chart for details and eligibility requirements.

Recommended: Understanding Mortgage Basics

Federal Programs for First-Time Homebuyers

People with low credit scores or limited down payment funds will find that a number of federal government programs exist to help them achieve their dreams of becoming homebuyers. Although these resources are sometimes for repeat homeowners, the national programs can be helpful for many individuals or families who are buying a first home or who haven’t owned a home in several years.

The mortgages are generally for single-family homes, two- to four-unit properties that will be owner occupied, approved condos, townhomes, planned unit developments, and some manufactured homes.

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. Homebuyers choose from a list of approved lenders participating in the FHA loan program. Loans offer competitive interest rates and require down payments of 3.5% of the purchase price. Borrowers typically need FICO® credit scores of 580 or higher to qualify. Those with scores as low as 500 must put at least 10% down.

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). FHA allows a DTI of up to 57%, vs. a typical 45% maximum for a conventional loan.

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

FHA loans always require mortgage insurance premiums (MIP): This includes a fee of 1.75% of the base loan amount, which can be rolled upfront into the loan. Borrowers carry annual premiums for the life of the loan. As of 2025, monthly MIP for new homebuyers is 0.15% to 0.75%. A down payment of at least 10% allows the removal of mortgage insurance after 11 years..

For a $300,000 mortgage balance, upfront MIP would be around $5,250 and monthly MIP, at a rate of 0.55%, would be about $137. Learn more about these loans, including FHA loans for refinance and rehab of properties, by reading up on FHA requirements, loan limits, and rates.

Freddie Mac Home Possible Mortgages

Low- and very low-income borrowers may make a 3% down payment when they qualify for a Home Possible® mortgage. These loans allow various sources for down payments, including family gifts, co-borrowers, employer assistance, secondary financing, and sweat equity.

The Home Possible mortgage is for buyers with a credit score of at least 660. Once you pay off 20% of your loan, the Home Possible mortgage insurance 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 of as little as 3%. Applicants generally need a credit score of 620 or higher; pricing may be better for credit scores of 680 and above. Like the Freddie Mac program, HomeReady loans allow flexibility for down payment financing, such as 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 any income level who have a credit score of at least 620 and meet debt-to-income criteria. The 97% loan-to-value mortgage requires 3% down. Borrowers can get third-party-sourced down payment and closing cost assistance.

Department of Veterans Affairs (VA) Loans

Eligible active-duty members of the military, veterans, reservists, and surviving spouses may apply for loans backed by the VA. These loans designed for those who serve our country can be used to buy, build, or improve homes, have lower interest rates than most other mortgages and don’t require a down payment.

Another benefit of VA loans is that they do not require private mortgage insurance (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 experienced foreclosure or bankruptcy can qualify.

Borrowers applying for a VA loan will need a Certificate of Eligibility from the VA so make sure to review a guide to qualifying for a VA loan as a first step in the process.

💡Quick Tip: Active duty service members who have served for at least 90 consecutive days are eligible for a VA loan. But so are many veterans, surviving spouses, and National Guard and Reserves members. It’s worth exploring with an online VA loan application because the low interest rates and other advantages of this loan can’t be beat._†

Native American Veteran Direct Loans (NADLs)

Eligible Native American veterans along with 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.

US Department of Agriculture (USDA) Loans

No down payment is required on these loans that are for moderate-income borrowers and 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. For loan basics and income and property eligibility, head to this USDA site .

HUD Good Neighbor Next Door Program

This program helps 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.” You will need to live in the home for at least three years.

Go to the HUD program page for more information. You can also reach HUD’s Sioux Falls Field Office at 605-330-422

First-Time Homebuyer Stats for 2025

•   Median home sale price in South Dakota: $334,000

•   3% down payment: $10,020

•   20% down payment: $66,800

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

•   Median age of first-time homebuyers: 38

•   Average credit score (vs. average U.S. score of 715): 734

More 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 homebuyer in South Dakota. Some examples:

•  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. You will still owe income tax on the IRA withdrawal. 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 jeopardize your retirement savings.

•  Roth IRA withdrawals are made with after-tax money, so the IRS allows tax- and penalty-free withdrawals of contributions to Roth IRAs for any reason as long as you’ve held the account for five years. You may also withdraw up to $10,000 in earnings from your Roth IRA without paying taxes or penalties if you are a qualifying first-time homebuyer and you have had the account for five years. With accounts held for less than five years, 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 may consider taking a loan against the 401(k) account to help finance your home purchase. With most plans, you may borrow up to 50% of your 401(k) balance, maxing out at $50,000, within a 12-month period without incurring 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 are usually offered at the regional or county level, and 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 portion of their mortgage interest as a tax credit, up to $2,000. (This doesn’t lower your mortgage payments, but can still be a good way to save.)

  To qualify for the credit, you must be a first-time homebuyer, live in the home, and meet income and purchase price requirements, which 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 may offer access to lower-cost lenders and real estate agents in your area, as well as home buying education courses.

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

Here is a home affordability calculator that can help you determine how much house you might be able to afford.

The Takeaway

Income-qualified first-time homebuyers in South Dakota have options to help them pay for a home. Other first-time buyers can explore the wide world of mortgages on their own to find the right fit.