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First-Time Homebuyer Assistance Guide
Oregon and Portland metro programs that can help cover your down payment, closing costs, and more — compiled for buyers exploring their options in 2026.
The flagship state DPA program. Provides closing cost and down payment assistance to first-time and first-generation homebuyers at or below 100% of Area Median Income (AMI). Assistance is delivered as a grant or forgivable second lien — no monthly payments. Veterans also qualify for up to $60,000, with an additional 10% available for lender-required repairs. Funds are awarded through local partner organizations statewide.
Two below-market-rate first mortgage products that pair with the OHCS DPA program to cover up to 100% of closing costs. Available to buyers earning under $125,000/year. Low-income borrowers (≤80% AMI) may qualify for loan forgiveness; moderate-income borrowers repay at 1% above the first mortgage rate. Minimum 620 credit score. First-time buyer status not required.
A below-market-rate first mortgage available through OHCS. Income limits range from $99,200–$165,200 depending on location and household size. Purchase price limits range from $510,939–$864,798. Open to single-family homes, condos, townhomes, PUDs, and manufactured homes. Can be paired with third-party down payment assistance. Also available to repeat buyers who are veterans or purchasing in a target area.
Oregon offers an MCC program that provides a federal tax credit each year based on the mortgage interest paid. The credit reduces tax liability for the life of the loan — a long-term benefit that compounds over time. Can be combined with other assistance programs including OHCS DPA.
Oregon allows buyers to open a tax-advantaged savings account at an Oregon financial institution. Deposits and earnings are deductible from Oregon taxable income — up to $6,125/year (or $12,245 for married couples filing jointly). Funds can cover down payment, closing costs, appraisal, agent fees, and origination fees. Must be used within 10 years. Account must be opened by December 31, 2026.
Qualified first-time homebuyers who can contribute at least $500 of their own funds may be eligible for a $2,500 grant toward down payment or closing costs. No repayment required. Homebuyer education completion is required to qualify. Available through OHCS-approved lenders.
A second mortgage funded by the Portland Housing Bureau (PHB) for first-time buyers purchasing within Portland city limits. Paired with a first mortgage from a participating lender. Buyers must be at or below 100% AMI, maintain no more than $10,000 in liquid assets at closing, contribute a minimum of $500, and complete a HUD-approved homebuyer education class. Notably, 10% of the award goes into a Home Improvement Grant Fund managed by PHB. Property must be a single-family home, condo, or townhome.
Serves first-time buyers earning 80% or less of AMI across Multnomah, Washington, Clackamas, Yamhill, and Columbia counties. Offers low-interest loans up to $80,000 for down payment and closing costs. Also administers an IDA (Individual Development Account) that matches $5 for every $1 saved toward a down payment. (IDA program is currently waitlisted — worth joining the list.)
Designed for moderate-income buyers (80–120% AMI, roughly $85,000–$127,000/year for a family of four in Portland). Uses an 80/20 model: 80% from a partner bank or credit union, 20% from Hacienda — eliminating both the down payment requirement and PMI. Minimum 640 credit score. Homeownership education and counseling required. A standout option for buyers who can afford a payment but haven't been able to save a down payment.
HUD-funded program for low-income first-time buyers purchasing within Gresham city limits. A 0% interest deferred-payment loan, forgiven after 15 years. Buyers must contribute at least $1,000 of their own funds, complete homebuyer education, and pass a city property inspection. Purchase price cannot exceed $499,000. Primary residence required for the life of the loan.
Portland's Best-Kept Secrets
Shop Smarter: Look for SDC-Waiver & HOLTE-Qualified Homes
Most buyers focus entirely on down payment help — but two Portland-specific programs can shave tens of thousands of dollars off what you pay for a new construction home, and reduce what you owe in property taxes for a decade after closing. These benefits are baked into specific properties, so knowing what to look for in the MLS is half the battle.
When a developer builds a new home in Portland, the city charges System Development Charges (SDCs) — fees for transportation, parks, sewer/stormwater, and water infrastructure. These typically average around $20,000 per unit in Portland and can run much higher. Under this program, the builder gets those fees waived entirely — and that savings is passed directly to the buyer in the form of a lower purchase price. If the listing is SDC-eligible, it will be noted in the MLS.
- Income limit: at or below 100% AMI (family of four ≤ $124,100)
- 2025 sale price cap: $455,000
- New construction only — must be initial purchaser/occupant
- Buyer submits Homebuyer Compliance Verification Form to PHB ≥10 days before closing
- $1,000 processing fee due at closing
- Primary residence required; cannot be rented out
- ~130 homes currently enrolled in Portland's pipeline — ask your agent to filter by SDC status
The HOLTE program freezes property taxes on the structural value of a new home for 10 full years. You still pay taxes on the land value, but the building portion — which is typically the larger share of the assessed value — is exempt. On a $400,000+ home, this can translate to thousands of dollars in annual savings. The exemption is applied by the builder before the permit is pulled, so eligible homes carry a HOLTE designation.
- Income limit: at or below 100% Median Family Income (MFI) — ~$124,100 for a family of four
- Sale price cap: $455,000 (updated annually by PHB)
- New construction single-family homes only; minimum 3 bedrooms (2BR allowed in select transit corridors)
- Must be owner-occupied as primary residence throughout exemption period
- Exemption expires after 10 years; property then fully reassessed
- Up to 500 HOLTE applications approved per fiscal year — limited availability
- Can be stacked with SDC Waiver and down payment assistance programs
Universal Eligibility Notes
- "First-time buyer" = no home ownership in the past 3 years (HUD definition)
- Most programs require HUD-approved homebuyer education
- Income limits typically at 80–100% of Area Median Income (AMI)
- Property must be a primary residence
- Must work with an approved or participating lender
- Some programs require a minimum buyer contribution ($500–$1,000)
- Condos, townhomes, and manufactured homes often eligible
- Veterans receive priority or enhanced benefits in most OHCS programs
My Trusted Lending Partners
Both lenders are experienced with Oregon and Portland DPA programs and can help your clients identify which programs they qualify for and get pre-approved.