If you’re a first-time home buyer in Oregon, navigating the world of mortgage loans can feel overwhelming. With so many programs and options available, it’s hard to know where to start. That’s why we sat down with Vince, a seasoned mortgage professional with over 18 years of experience, to break down the key loan programs, answer common questions, and provide tips on how to choose the right lender and loan for your needs.

In this guide, we’ll cover:

Let’s dive in!

1. Overview of Oregon’s First-Time Home Buyer Programs

Oregon offers several loan programs designed to help first-time home buyers achieve their dream of homeownership. Here are some of the most popular options:

First Home Program (Formerly Oregon Bond)

• What It Offers: Below-market interest rates and down payment assistance.
• Key Features:
  • Interest rates are typically 1% below market rates.
  • Down payment assistance of up to 5% of the purchase price, which can also help cover closing costs.
  • Available to first-time buyers or those who haven’t owned a home in the last three years.
  • Income limits apply, but they’re generous (e.g., up to $150,000 for a family of three or more).

Conventional 100% Financing

• What It Offers: No down payment required.
• Key Features:
  • Combines conventional loans with down payment assistance programs.
  • For example, the Portland Housing Bureau’s DPAL Program offers up to $100,000 in down payment assistance for eligible buyers in Portland.

Beaverton Down Payment Assistance

• What It Offers: Up to $50,000 in down payment assistance.
• Key Features:
  • Available to buyers who live or work in Beaverton.
  • Forgivable over 15 years (no repayment required if you stay in the home for the full term).
  • Can be combined with other programs like First Home.

Gresham Welcome Home Program

• What It Offers: Up to $40,000 in down payment assistance.
• Key Features:
  • Available to first-time buyers or displaced homemakers.
  • Must meet income limits (80% of the area median income).
  • Can be combined with other programs like First Home or MAP (Mortgage Assistance Program).

MAP (Mortgage Assistance Program)

• What It Offers: 100% financing with no mortgage insurance.
• Key Features:
  • Available through select lenders partnered with the Portland Housing Center.
  • Combines a first mortgage with a community-funded second mortgage.
  • Ideal for buyers who want to avoid mortgage insurance and keep payments low.

VA and USDA Loans

• What They Offer: Specialized programs for veterans and rural home buyers.
• Key Features:
  • VA Loans: No down payment required, and can be combined with Oregon’s veteran-specific programs like ODVA (Oregon Department of Veterans Affairs).
  • USDA Loans: 100% financing for homes in rural areas (e.g., west of Hillsboro in Washington County).

2. How to Choose the Right Loan Program

With so many options, how do you decide which program is best for you? Here are some key considerations:

• Your Financial Situation: Do you need down payment assistance, or are you more focused on getting the lowest interest rate?
• Your Long-Term Goals: Are you planning to stay in the home for a long time, or is this a short-term investment?
• Location: Some programs are specific to certain cities or counties (e.g., Beaverton, Gresham, or Portland).
• Stackability: Many programs can be combined to maximize benefits. For example, you can pair First Home with down payment assistance programs.

3. Frequently Asked Questions from First-Time Buyers

Q: What if I don’t have perfect credit?

A: Many programs, like First Home, are designed to help buyers with less-than-perfect credit. You may still qualify for below-market rates and down payment assistance.

Q: Do I have to pay back down payment assistance?

A: It depends on the program. For example, Beaverton’s $50,000 assistance is forgivable over 15 years, meaning you don’t have to repay it if you stay in the home for the full term.

Q: Can I combine multiple programs?

A: Yes! Programs like First Home, MAP, and local down payment assistance can often be stacked to provide even greater benefits.

Q: What if I’m not a first-time buyer?

A: Some programs are available to buyers who haven’t owned a home in the last three years, so you may still qualify.

4. Tips for Picking the Right Lender

Choosing the right lender is just as important as choosing the right loan program. Here’s how to compare lenders effectively:

• Get Multiple Quotes: Always get quotes from at least three lenders, including your current lender, an online lender, and a local credit union.
• Ask About Programs: Not all lenders offer the same programs. Make sure your lender is knowledgeable about first-time buyer programs in Oregon.
• Compare Fees and Rates: Use the APR (Annual Percentage Rate) to compare the total cost of the loan, but also ask for a detailed breakdown of fees.
• Check Reviews and Reputation: Look for lenders with strong local reviews and a track record of helping first-time buyers.

5. Key Takeaways for Financial Success

• Knowledge is Power: The more you know about your options, the better decisions you can make. Don’t hesitate to ask questions and seek advice from professionals.
• Think Long-Term: While a lower monthly payment is important, consider how much cash you’ll need to keep in reserve for emergencies or future investments.
• Leverage Local Programs: Oregon offers some of the most generous first-time buyer programs in the country. Take advantage of them!
• Work with a Trusted Lender: A lender who understands your goals and can guide you through the process is invaluable.

First-Time Home Buyer

Buying your first home is a big step, but it doesn’t have to be overwhelming. By understanding your options, working with the right lender, and taking advantage of Oregon’s first-time buyer programs, you can make a smart financial decision that sets you up for long-term success.

If you have any questions or need personalized advice, feel free to reach out to Vince or your local real estate agent. Happy house hunting!

Related Posts

• Mortgage Strategy 2025: Navigating the Future of Real Estate
  The real estate market is constantly evolving, and as we look ahead to 2025, it’s clear that both homeowners and investors need a solid mortgage strategy to navigate the challenges and opportunities ahead.
• How a Mortgage Actually Works
  The world of real estate can feel overwhelming, especially if you’re new to it. With so many terms and concepts to grasp, buying a home might seem like a daunting
• How to Get Out of a Mortgage
  If you’re feeling stuck in your mortgage or simply exploring your options, you’re not alone. Many homeowners in the United States and United Kingdom find themselves wondering how to get out of a mortgage.
• How to Qualify for a Mortgage with Student Loan Debt in 2025
  Buying a home is a significant milestone, but for millions of Americans carrying student loan debt, the path to homeownership can feel daunting. The good news? Qualifying for a mortgage
• Mortgage Rates Update
  Hey everyone, Dan Freo here with your Closing Bell update for February 14th, 2025. Today, we’re diving into the national deficit, mortgage rates, bond market reactions, and equity movements. But