By Tyler Thompson · Licensed Real Estate Agent · Updated October 27, 2026

Salem OR Down Payment Assistance & Homebuyer Programs

See programs you qualify for

See which Oregon down payment assistance reaches Salem buyers, through OHCS lenders and DevNW's Church Street office, against a $416,900 median value.

Verified Oct. 2026

Median home value: $416,900; Census ACS 2020-2024
3% down: $12,507; Before closing costs
Closing costs: $8k–$13k; Planning estimate
Assistance paths: 2 programs; Plus 6 mortgage options

Start with the program that matches the property

Start with the program that matches the property: at Salem's $416,900 median, OHCS Flex Lending's 4% second covers most of an FHA buyer's cash, while DevNW holds the state's first-time awards for Marion and Polk counties, including help of up to 60,000 dollars for veterans.

State

OHCS Flex Lending Down Payment Assistance

4% of the loan, 5% if Focused

A FirstHome or NextStep loan from an OHCS lender adds a 4% second, 5% for Focused households, that can cover all of the cash needed to close.

State via DevNW

Oregon Down Payment Assistance

$60,000 max, 20% of price cap

DevNW's Salem office places Oregon's first-time awards in Marion and Polk counties, including up to 60,000 dollars for veteran buyers.

Plan the cash

What buying in Salem costs

Median home value	$416,900
3% down payment	$12,507
Estimated closing costs	$8,300–$12,500
Estimated cash before assistance	$20,807–$25,007

Estimate only, not a quote. Estimated at 2% to 3% of Salem's $416,900 median value, covering lender and title charges, escrow, prepaid insurance, and a property tax reserve at roughly 0.96% of value.

Keep cash help separate

Down payment assistance in Salem

Program	Maximum	Best fit	Repayment / limit
OHCS Flex Lending Down Payment Assistance	Maximum:4% of the loan, 5% if Focused	Best fit:640+ scores who want the cash with the first loan	Repayment / limit:Forgivable at 80% AMI or less
Oregon Down Payment Assistance (OHCS)	Maximum:$60,000 max, 20% of price cap	Best fit:First-time or first-generation buyers ≤100% AMI	Repayment / limit:DevNW: 0% loan, shared appreciation; Paid only while an award is funded

Mortgage options that may pair with assistance

These are financing routes, not additional cash awards. Eligibility and compatibility still depend on the lender and program rules.

FHA3.5% down payment
Good Neighbor Next DoorConditional: HUD homes in revitalization areas50% off the list price
Home Possible3% down payment
HomeReady3% down payment
HUD $100 DownConditional: HUD-owned homes with an FHA loan100 dollars down
VA0% down with full entitlement

HomeReady and Home Possible are conventional mortgages backed by Fannie Mae and Freddie Mac; FHA, VA and USDA loans are government-backed.

Make a decision

Find your best starting point

Earning above 80% of AMI

Expect a repayable Flex second

Flex Lending forgives its second only within 80% of county AMI; above that it charges 1% over the first loan rate for 10, 20 or 30 years.

Veteran buying a first home

Call DevNW about its veteran award

DevNW lists Oregon assistance of 30,000 to 60,000 dollars for first-time or first-generation veterans within 100% of AMI; VA disability income is not counted.

Household of four or more

Ask for the Focused 5%

NextStep's Focused option pays 5% instead of 4% when a household meets two of four tests, such as four or more members or a 28% front-end ratio.

Property and geography checks

Program	Where	Property / lender gate
OHCS Flex Lending	Where:Every Oregon county, Marion and Polk included	Gate:640 score, NextStep income ≤ $125,000 including non-occupying co-borrowers; second due on sale or refinance
OHCS awards via DevNW	Where:Marion and Polk counties	Gate:No home owned in 3 years, income ≤ 100% AMI, DevNW class and counseling; funds only when an award is open
VA and FHA loans	Where:Owner-occupied Salem homes	Gate:Condos need project approval; older homes must pass the VA or FHA appraisal's condition checks

The fastest way to avoid a bad match

Check the address, property type and price cap before comparing assistance amounts.

A larger advertised benefit doesn’t help if the home or lender is outside that program’s rules.

Have a home in mind? Enter its address.

We’ll fill in its city and state on the free eligibility check. A mailing address that says Salem isn’t always inside city limits, so confirm with the program before you make an offer.

See the math

Three realistic purchase examples

Illustrations only. Approval, availability and program combinations depend on current rules.

FHA house at Salem's median with Flex Lending

Price	$416,900
Down payment	$14,592
Closing costs	$10,400
OHCS Flex Lending 4%	−$16,374
Estimated gap	$8,618

OHCS bases the 4% on the total FHA loan of 409,348 dollars, which includes upfront mortgage insurance.

First-time buyer with a DevNW Project Reinvest award

Price	$340,000
Down payment	$11,900
Closing costs	$8,500
DevNW Project Reinvest	−$10,500
Estimated gap	$9,900

DevNW doesn't list Project Reinvest's counties, so confirm with the Salem office that it covers the address; paid only while funds last.

Veteran buying a $400,000 West Salem house with VA

Price	$400,000
Down payment	$0
Closing costs	$10,000
DevNW veteran award	−$10,000
Estimated gap	$0

DevNW sets each award; this example assumes it covers closing costs only, well under the 60,000 dollar ceiling.

How to apply in Salem

1
Join DevNW and book the class
DevNW Salem office, 454 Church Street NE
DevNW's 75 dollar membership covers a year of classes and consultations. Its Homebuying Foundations course, or Fundaciones de Comprar Vivienda in Spanish, is required before any award.
503-779-2680 · devnw.org
2
Meet a DevNW counselor
DevNW homeownership counseling
The one-on-one session checks income against 80% or 100% of AMI, depending on which award is funded, and confirms the three-year no-ownership rule.
devnw.org
3
Check the state award list
Oregon Housing and Community Services
OHCS names DevNW and Habitat for Humanity of Oregon as the award holders for Marion and Polk counties; each sets its own amounts and windows.
oregon.gov
4
Choose an OHCS Flex Lending lender
OHCS-approved lenders
FirstHome and NextStep loans come only from OHCS lenders, and the 4% or 5% second is set up with the first loan. Education is required for anyone without a home in three years.
800-453-5511 · oregon.gov

Free eligibility check

2 assistance programs and 6 mortgage options may be available in Salem. See which ones fit you.

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No credit check
Takes 2 minutes

Are you a first-time homebuyer?

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Question 1 of 6

housebuyerguides

Local details matter

Buying considerations in Salem

A city in two counties

West Salem lies across the Willamette in Polk County. DevNW and Habitat for Humanity of Oregon hold state awards for both Marion and Polk, so either side of the river qualifies.

Property tax near 1%

Census ACS 2020-2024 puts the typical Salem tax bill at $4,007, roughly 0.96% of what the median home is worth; lenders collect a reserve for it at closing.

Homes from around 1980

Census puts Salem's median year built at 1980, so many houses are 45 years old; FHA and VA appraisers flag peeling paint, roofs and failing systems.

Award funds come and go

DevNW pays assistance only when an award is funded and posts open programs on its downpayment page, so a buyer may finish the class before money is available.

If local funding isn't available

Salem passes its HUD HOME money to partner organizations rather than to individual homebuyers, and refers residents to those partners. Salem buyers can still use these state, nonprofit and federal routes.

OHCS Flex Lending

A 4% second, or 5% under NextStep's Focused option, paired with a FirstHome or NextStep first loan, forgiven at loan end for households within 80% of county AMI.

DevNW

The Salem office places Oregon's first-time awards in Marion and Polk counties, including veteran awards of up to 60,000 dollars; ask whether its Project Reinvest help, up to 10,500 dollars, covers your address.

Habitat for Humanity of Oregon

OHCS also lists Habitat for Humanity of Oregon as an award holder for Marion and Polk counties; ask it directly which Salem-area homes and funds are open.

VA and FHA financing

Veterans with full entitlement can finance the full price, and FHA needs 3.5% down; either can carry a Flex Lending second through an OHCS lender.

Frequently Asked Questions

Is there a Salem city down payment program?+

No. Salem does not fund individual residents; it grants its HUD HOME allocation to partner organizations and refers people to them. For a Salem purchase, the cash comes from OHCS Flex Lending through an approved lender or from Oregon awards held by DevNW and Habitat for Humanity of Oregon.

Is a West Salem home in Polk County still eligible?+

Yes. OHCS lists DevNW and Habitat for Humanity of Oregon as award holders for both Marion and Polk counties, and Flex Lending covers every Oregon county. Confirm the county on the listing, since income limits and loan limits follow the county, not the Salem mailing address.

Do I have to pay back DevNW's assistance?+

Yes, in most cases. DevNW describes its assistance as an interest-free loan repaid with shared appreciation when the home is sold or the first mortgage is refinanced. That differs from Flex Lending, whose second is forgiven at loan end for households at or below 80% of AMI.

What is left to pay at closing on a median-priced Salem home?+

About 8,600 dollars in our example. FHA's 3.5% down on $416,900 is 14,592 dollars; with an estimated 10,400 dollars of fees, prepaids and tax reserve, the total reaches 24,992 dollars. A 4% Flex Lending second on the 409,348 dollar loan pays 16,374 dollars of that.

Can a repeat buyer in Salem get state help?+

Yes, through Flex Lending's NextStep loan, which has no first-time rule and a $125,000 income cap. The OHCS awards DevNW places are for first-time or first-generation buyers who have not owned a home in three years, so repeat buyers usually rely on Flex Lending alone.

Is homebuyer education required for Salem assistance?+

Yes. Any DevNW award requires its Homebuying Foundations course, or Fundaciones de Comprar Vivienda in Spanish, plus a counselor meeting. OHCS also requires education from an approved homeownership center for Flex Lending buyers who have not owned a home in three years.

Buying elsewhere in Oregon? Compare all Oregon home buyer programs →

Sources

Last verified October 27, 2026.

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