First-time home buyer programs in Oregon and Portland

What does the state offer?

OHCS describes Flex Lending as two first-mortgage products sold through approved lenders. Both can be paired with down payment assistance (DPA), which can cover up to 100% of the cash you need at closing: down payment, closing costs, prepaid items and upfront mortgage insurance. Homes must be single-family, owner-occupied and in Oregon.

Source: OHCS, FirstHome and NextStep program pages, October 2026.

Both products also set loan-to-value limits for FHA (96.5%), VA and USDA (100%) loans. You cannot own other real estate at closing, and non-occupying co-borrowers are not allowed with FirstHome but are allowed with NextStep.

How is the assistance repaid?

The DPA is a second mortgage with terms based on your income. OHCS says it can be a forgivable second lien with no payments and no interest, or an amortizing second lien. For FirstHome, an income at or below 80% of the county’s area median income (AMI) puts you in Tier 1, which carries forgivable DPA; Tiers 2 and 3 have other options described in OHCS’s product manual.

Is there other state down payment help?

Yes. OHCS also funds organizations across the state through its Down Payment Assistance program. It serves first-time and first-generation buyers at or below 100% of AMI, with up to $60,000 or 20% of the purchase price, whichever is less. Twenty-five percent of the funds are reserved for Oregon veterans. Each funded organization sets its own rules, so contact the one serving your county.

What are the limits in Multnomah County?

FirstHome limits are published by county, and by whether the home is in a “targeted area,” a Census tract that HUD identifies to promote access to homeownership. OHCS lists five tracts in Multnomah County (0041.04, 0082.04, 0090.02, 0096.04 and 0098.01); you can check an address with the FFIEC geocoding tool OHCS links to.

Source: OHCS, FirstHome purchase price limits and household income limits, lists updated June to August 2026. Washington and Clackamas Counties have the same non-targeted price limit and no targeted areas.

The AMI tiers that set your DPA terms are different from these income limits. For Multnomah County OHCS lists $102,640 as the 80% AMI level for both products. Its 80%-120% tier tops out at $153,960 for FirstHome and at $125,000 for NextStep (marked with an asterisk in the table), and NextStep lists no tier above that. Because limits change, confirm them with an approved lender before you decide.

For scale: the 2024 Census median value in the city of Portland is $588,200 (see home prices in Oregon), below the $733,987 price cap.

A worked example

Say you buy a home with a first mortgage of $380,000 through FirstHome. Standard DPA of 4% is $15,200; the 5% focused-demographics option is $19,000. This is an illustration of the percentage, not an offer: the exact amount depends on the loan, your lender and your income tier.

What does Portland add?

The Portland Housing Bureau offers a Down Payment Assistance Loan (DPAL) for first-time buyers of a home inside Portland city limits.

• Amount: up to $80,000 to $100,000, depending on the funding source and the home’s location. Funding is subject to availability.
• Terms: a second mortgage, 30 years, 0.00% interest, payments deferred until you sell, refinance or stop living in the home. A $500 origination fee applies.
• Forgiveness: 50% of the loan is forgiven at the 15th anniversary, then 3% of the original amount each year from year 16 to year 29, and any remainder at the end of year 30, if you live in the home and keep it insured.
• Eligibility: first-time buyer (no home owned in the past three years), household income at or below 100% of Portland AMI (sometimes 80%), no more than $10,000 in liquid assets at closing, a minimum $500 of your own money, and a HUD-approved homebuyer class. Single-family homes, condos and townhomes qualify.
• How to apply: through a PHB community partner, whose homebuyer counselor assesses you first. PHB’s page lists them.

PHB also runs the Homebuyer Opportunity Limited Tax Exemption (HOLTE) for new construction in Portland: a ten-year property tax exemption on the structural improvements of a qualifying home, with a $455,000 sale price cap and an income limit of 100% of median family income. The builder applies before obtaining a building permit. For how property tax is calculated, see property tax in Oregon.

How to apply

1. Talk to a housing counselor. OHCS requires homebuyer education for anyone who has not owned a primary residence in the past three years.
2. Find an approved lender. Flex Lending loans are offered only by lenders OHCS has approved; OHCS lists them on its Flex Lending page.
3. Check your limits against the tables above and your lender’s figures.
4. Add city help. If the home is in Portland, ask your counselor about the DPAL.

Read our home buying steps, the FHA loans guide, and buying a home in Portland. Costs at closing are in Oregon closing costs.