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First-home buyers in Oregon often encounter additional hurdles that repeat buyers might not have. For one thing, first-time buyers don’t have the proceeds from a previous home sale to put toward the down payment on their next purchase.
This is the #1 reason why so many first-time home buyers in Oregon struggle to make the jump into homeownership, even when they can afford the monthly payments.
The good news is that certain down payment programs can help first-time buyers overcome this upfront hurdle. And we’ll explore several of those Oregon housing programs in this guide.
Oregon down payment assistance (DPA) programs are designed to help first-time home buyers get over the biggest obstacle to homeownership. These programs offer several different kinds of financial assistance to eligible borrowers, making first-time homeownership in Oregon more attainable.
Most DPA programs in Oregon have specific eligibility requirements, including income limits, first-time buyer status, and a mandatory education course.
Next, let’s look at some specific programs available for first-time buyers in Oregon.
The Oregon Housing and Community Services (OHCS), a state agency, provides financial help to eligible home buyers by covering a portion of their down payment and closing costs.
This program makes homeownership more accessible for low- to moderate-income individuals and families. It’s actually funded by document recording fees, which are assessed by local agencies when people purchase homes in Oregon.
According to the OHCS official website:
“Homebuyers must be first-time and/or first-generation homebuyers at or below 100% of area median income. They must also complete First-Time Homebuyer Education and meet with a certified housing counselor to be eligible for down payment and/or closing cost assistance.”
Fannie Mae and Freddie Mac also have programs geared toward first-time buyers, both of which allow for a down payment as low as 3%. So let’s look at those next.
Fannie Mae is one of the government-sponsored enterprises that buy loans from lenders, securitize them, and sell them to investors. Freddie Mac is the other “GSE.”
Fannie offers a low down payment mortgage program for first-time home buyers in Oregon and nationwide. It allows eligible borrowers to finance up to 97% of the home’s purchase price, for a down payment as low as 3%.
Unlike similar programs, Fannie Mae’s 97% LTV program does not impose any income limits or restrictions. So you don’t have to be a low- or moderate-income home buyer.
At least one borrower on the loan has to be a first-time buyer. But their definition of “first time” is fairly broad. They define it as a person who has not “owned any residential property in the past three years.”
Here’s how Fannie Mae clarifies the difference between their 3% down programs:
“Our HomeReady mortgage does not require that borrowers be first-time home buyers. Fannie Mae standard transactions using 97% LTV financing, however, must have at least one borrower who is a first-time home buyer.”
To be clear, the HomeReady mortgage in Oregon does not provide down payment assistance in the form of a grant or forgivable loan, like a true DPA program. But it does allow first-time buyers to make a purchase with less money down, essentially accelerating the timetable.
Freddie Mac (the other government-sponsored enterprise) offers a mortgage program that’s nearly identical to the Fannie Mae program mentioned above. It’s called “HomeOne.”
Once again, there are no income restrictions. So you do not have to be a low- or moderate-income borrower to qualify for the HomeOne program in Oregon. But there is a first-time buyer requirement.
At least one borrower has to be a first-time buyer, meaning they have not owned a house during the three-year period preceding the purchase date.
Additionally, if all of the borrowers named on the loan are first-time buyers (as defined above), at least one of them must complete an approved home buying education course.
Many first-time home buyers use FHA loans in Oregon to finance their purchases. This program is not limited to first-time buyers, but it supports this audience by allowing for a down payment as low as 3.5% of the purchase price.
Understanding Oregon first-time buyer programs can help make purchasing your first home more accessible. If you need assistance navigating the mortgage options available to you in Oregon, be sure to reach out to your local mortgage specialist.
If you’re looking to buy in Oregon, we can help. At Sammamish Mortgage, we offer various mortgage options for you to choose from. Visit our website to get an instant rate quote or call us today if you would like to learn more about the different down payment strategies available in Oregon.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.