Last Updated on August 23, 2023 by Hannah Stevens
Mortgage Assistance for Homebuyers in Oregon
Springfield Home Ownership Program
Springfield designed the Springfield Home Ownership Program (SHOP) to encourage homeownership, and assist low-income residents with purchasing their first home.
Available Assistance
The City of Springfield can lend up to $7,000 in assistance funds under SHOP. This money is for the down payment or other related costs associated with purchasing a qualified home in Springfield. The loan is also free of interest, and no repayment is required until the property is sold, refinanced, or transferred. In addition, the primary lender requires the buyer to contribute at least 50% of the minimum down payment.
Eligibility Requirements
All applicants interested in the Springfield Home Ownership Program must be first-time homebuyers. They must also purchase a house within the Springfield city limits. In addition, they must be within the set income limits (listed below).
Income Limits
- 1-person household: $35,950
- 2-person household: $41,050
- 3-person household: $46,200
- 4-person household: $51,300
- 5-person household: $55,450
- 6-person household: $59,550
- 7-person household: $63,650
- 8-person household: $67,650
City of Portland Down Payment Assistance Loan (DPAL)
The Down Payment Assistance Loan (DPAL), is a loan that helps first-time homebuyers buy a property within Portland.
Available Assistance
The Portland Housing Bureau (PHB) provides a second mortgage loan that is guaranteed by the Portland Housing Bureau. Then, you can combine it with a first mortgage loan from one of its participating lenders.
DPAL awards can range from $80,000 to $100,000 depending on the funding source and whereabouts of the home. Additionally, a minimum of 10% of DPAL awards is for home improvement grants. However, this depends on where the award was made. For more information on the Home Improvement Grant Fund, please see below. This assistance includes a 30-year loan term with zero interest per year and an Annual Percentage Ratio (APR) at 0.012%.
Eligibility Requirements
All applicants must work with a Community Partner Homebuying Counselor (see above). They will be assessed as mortgage ready and first-time homebuyers. This is someone who is not an owner of a home for the last three years. However, the annual household income must not exceed 100% of Portland’s Area Median Income (AMI) adjusted for family size.
The household income limits that apply depend on the funding source and/or the bedroom size of your home. In some cases, you may have to live with a household income limit of at least 80% of your AMI. Then, the Homebuying Counselor is the one who can say the award’s income limit.
The applicant must have a combined total of $10,000 in liquid assets (cash and bank checking) at closing and a minimum borrower investment not less than $500 (They allow Gift funds)
This is similar to the Down Payment first-time homebuyer assistance programs in Oklahoma.
City of Salem First-Time Homebuyer Downpayment Assistance Loan Program (FTHB)
Salem provides a variety of services to address community housing needs. These include rehabilitating existing housing stock, creating new housing opportunities, helping families acquire housing and enabling families with low incomes to stay in their homes. The First-Time Homebuyer Downpayment Assistance Loan Program is one of these services.
Available Assistance
First-time homebuyers can get no-interest, deferred payments loans for the down payment and closing cost of a condo, single-family, or multi-family home (2-4 units). The loan needs full repayment upon the sale or transfer of the property, or if the property is no longer your permanent residence.
The FTHB Program will match up to $6,500 of your down payment. For a total $7,500 down payment assistance, applicants who have completed a CHAPA-certified homeowner counseling course before closing a loan are eligible to receive an additional $1,000 in matching funds. The City has a link to all available courses.
Income Limits
- 1-person household: $70,750
- 2-person household: $80,850
- 3-person household: $90,950
- 4-person household: $101,050
- 5-person household: $109,150
- 6-person household: $117,250
Extra Step and Project Reinvest Loans
Willamette Neighborhood Housing Services, along with other organizations, aims to help people overcome the obstacles of homeownership through a combination homebuyer education courses and counseling. They help people out of the renters trap by providing different Down Payment Assistance Programs to help bridge the affordability gap. You can combine these programs to help with home purchase costs.
Extra Step Loan
The loan program provides $10,000 for down payment assistance. This loan program is available to qualified first-time homebuyers who are purchasing a home within Linn, Benton, or Lincoln Counties. The program is for those who earn less than 80 percent of their area median income (AMI), in the county they intend to buy a home.
Project Reinvest Loan
The loan program is available to home buyers who earn a maximum 100 percent of their area median income (AMI). To help offset the down payment, this program provides $10,500 for first-time homebuyers in Linn, Benton, or Lincoln Counties.
Final Remark
Project Reinvest Loan and Extra Step Loan are both interest-free loans. Payments are not due until the selling of the property or the refinancing of first lien mortgage. All eligible applicants must attend at least eight hours of Homebuyer education and at most one hour of individual Home Purchase Consultation. Additional eligibility requirements and restrictions may apply. The lenders during consultations will discuss these matters.
First Time Home Buyer Loan Program
The City of Corvallis Home Buyer Assistance Programs aim to encourage homeownership within the city limits. They help individuals finance part of their down payment or closing costs for new homes. Individuals can overcome these upfront costs with the First Time Home Loan Program.
Available Assistance
First-time homebuyers Program offers assistance funds in the form of a zero-interest loan up to $20,000 for low income buyers who are buying within Corvallis. You can use these funds to cover some or all of your mortgage closing costs.
Eligibility Requirements
The First Time Homebuyer Assistance Program has certain requirements for applicants. The applicants must be first-time homebuyers. They cannot have owned a house in the past three years, unless they were divorced. All applicants must earn less than 80 percent of the HUD area median income. They are also required to complete a Homebuyer Education Program offered by Willamette Neighborhood Housing Services. All homes purchased must be within the Corvallis City limits.
Income Limits
- 1 person household: $45,850
- 2 person household: $52,400
- 3 person household: $58,950
- 4 person household: $65,450
- 5 person household: $70,700
- 6 person household: $75,950
- 7 person household: $81,200
- 8 person household: $86,400
The Corvallis Home Buyer Assistance Programs, which use federal funds, require that all applicants comply with the Uniform Relocation Act. For more information, Borrowers should to contact the Housing and Neighborhood Services Division of the City.
HOME Foundation Buyers Assistance Grant
Many people in Oregon have fallen for the renters’ trap. They can afford monthly mortgage payments but don’t have enough money to pay a down payment. The HOME Foundation Buyers Assistance Grant is funded by the Rogue Valley Association of Realtors and the Oregon Association of Realtors. This grant is intended to help people get out of this trap. Eligible homebuyers can receive up to $1,000 towards a down payment, closing cost, or prepaid item.
Eligibility Requirements
All applicants must meet the requirements to be eligible for this program. Only first-time homebuyers who must not have owned a house in the last three years are eligible for this program. They must have been preapproved for a conventional loan or a government-insured/guaranteed loan. Buyers’ income must not exceed $64,600 in Oregon and they must contribute $500 of their own money. Applicants are required to attend and complete the Realizing the American Dream Homebuyer Education class, given by ACCESS at one of the campuses of the Rogue Community College, or the eHome America online alternative class available through this website. They will also need to meet with a certified homeownership counselor at ACCESS in the past 12 months.
All property purchased must be in Jackson County or Josephine County, Oregon and be the buyer’s primary residence.
Homebuyer Education
After a buyer completes the Homebuyer Education Course and has met with a counselor from ACCESS, he/she is eligible to apply for the HOME Foundation Buyers Aid Grant. They will need to work with lenders or real estate agents that are active members the Southern Oregon Multiple Listing Service. These agents must pre-approve the buyer for a qualified mortgage, and then submit the application directly to ACCESS.
Are you interested in the First-Time Homebuyer Assistance Programs in Pennsylvania?
