First Time Home Buyer

 Programs in Oregon

Complete First Time Home Buyer Programs Available in Oregon.

The state agency created by the legislature in Oregon to offer first time home buyer programs is the Oregon Housing and Community Services. Here is a summary of the current first time home buyer programs that are offered:

Purchase Assistance Loan

The State of Oregon, Oregon Housing and Community Services (OHCS) is pleased to introduce a new downpayment and closing cost assistance program called the Purchase Assistance Loan (PAL). PAL is funded from the US Department of Housing and Urban Development (HUD) as a part of its American Dream Downpayment Initiative.

PAL is a secondary loan from OHCS to help low-income first time homebuyers come up with the cash they need to pay their closing costs and downpayment. It has great loan terms! The interest rate is 0% with no payments due until the home is sold, transfer of title or default. Up to $10,000 in assistance is available, per household. Essentially, the program will significantly lower the cash eligible households need to purchase a home as well as reduce their monthly payments to make them affordable.

Oregon Bond Loan

OHCS is Oregon’s “State Housing Finance Agency.” The Department periodically issues mortgage revenue bonds to fund lower than market interest rate mortgage loans for below-median income homebuyers in Oregon. OHCS helps low and moderate income households in Oregon buy their first home by providing below-market rate financing and cash assistance through our Residential Loan Program, also known as the “Oregon Bond Loan”. The program’s below-market rate helps eligible families increase their home purchasing power and lower their monthly house payments to be affordable.

The Program offers eligible borrowers a choice between cash to close or our best rate. With the CashAdvantage Home Loan option, borrowers will get a low, fixed-interest rate on their home loan along with cash assistance equal to 4% of their loan amount. The cash assistance will help reduce the total cash they need to close the loan. With the RateAdvantage Home Loan option eligible borrowers will get the lowest fixed rate possible to maximize their home purchasing power. Regardless of which pricing option they choose, the eligibility and program requirements are the same.

For complete details on these first time home buyer programs available to Oregon residents, visit the Oregon Housing and Community Services website.

It is highly recommend that you also visit the First Time Home Buyer Grants page for free assistance with the down payment. This will make it possible for many people to qualify for a first time home buyer loan who wouldn't have qualified without the grant assistance.

Best Lender For First Time Home Buyer Loans

Unfortunately, some lenders do not like to work with first time home buyers (due to not having a track record), and prefer instead to only provide mortgages to people who have previously owned a home. If you do not need help with the down payment and are not in need of any state program, but simply want to apply for a mortgage, we recommend  ING DIRECT Orange Mortgage They have great rates, an easy online application, and welcome first time home buyers. Additionally they have not been as severely hurt by the subprime mortgage crisis and are still approving the majority of applications.

Other First Time Home Buyer Programs & Resources