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Oregon Down Payment Assistance (OHCS)

By Tyler Thompson · Licensed Real Estate Agent · Updated October 21, 2026

Administered by:

Oregon Housing and Community Services (OHCS)

· State · Grant

Funding status: Active

About the Oregon Down Payment Assistance (OHCS)

Oregon Down Payment Assistance (OHCS) is state money that Oregon Housing and Community Services awards to local organizations, which then give eligible buyers up to $60,000 or 20% of the purchase price, whichever is less. Twenty-one awarded groups cover Oregon's counties, from Proud Ground in the Portland area to Klamath Housing Authority. The fund comes from document recording fees and, in some places, construction excise taxes, and 25% is reserved for Oregon veterans.

To qualify, household income must be at or below 100% of area median income. In the Portland-Vancouver-Hillsboro area, HUD's 2026 median for a family of four is $128,300, so a Multnomah County household of four can earn up to that amount. Buyers must be first-time or first-generation homebuyers, and each provider applies its own definition. Every buyer completes first-time homebuyer education and meets with a certified housing counselor before closing. The rule that surprises people is that OHCS sets only the ceiling: the actual amount, form and timing come from the local organization serving the county, and some may have no funds open when you call. Veterans can use up to 10% of their award for lender-required repairs.

The award arrives as a grant or a forgivable second lien, depending on the provider, so repayment terms differ from county to county. OHCS Flex Lending, by comparison, gives 4% or 5% of the first mortgage statewide, and the two can be paired. Inside Portland city limits, the city's own DPAL lends up to $80,000 to $100,000 at 0% interest, with half forgiven at year 15.

How much assistance

Up to $60,000 or 20% of the purchase price, whichever is less, depending on the local program

Set by each local provider: OHCS says grant or forgivable second lien; DevNW (Marion/Polk) awards a 0% loan repaid with shared appreciation at sale or refinance

Eligibility

Income limits: At or below 100% of area median income for the county (Portland-Vancouver-Hillsboro 2026 HUD median family income for four: $128,300).
First-time buyer required: Yes — First-time and/or first-generation homebuyers.
Geographic restrictions: Statewide Oregon through local organizations OHCS funds by county; terms and availability are set by each provider. 25% of funds are reserved for Oregon veterans. Must also meet with a certified housing counselor.
Homebuyer education required: Yes

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How to Apply for Oregon Down Payment Assistance (OHCS)

Step 1: Find the OHCS-funded provider for your county

OHCS publishes a list of awarded organizations by county on its Down Payment Assistance page at oregon.gov/ohcs. Multnomah County buyers can call AAAH, Habitat for Humanity Portland Region, Hacienda CDC, NAYA, PCRI, Portland Housing Center or Proud Ground. Lane and Marion county buyers start with DevNW. Contact the provider first, because each sets its own amounts and funding windows.

Step 2: Confirm income and buyer status with the provider

The provider checks household income against 100% of area median income for your county and confirms you are a first-time or first-generation buyer under its rules. In the Portland metro, HUD's 2026 median for four people is $128,300. Veterans should say so at intake, since 25% of the statewide fund is reserved for Oregon veterans and repair money is allowed.

Step 3: Take homebuyer education and counseling

OHCS requires first-time homebuyer education and a meeting with a certified housing counselor. Most awarded organizations, including PCRI, Portland Housing Center and Proud Ground, teach the class themselves. OHCS's Find a Housing Counselor page lists other centers. Keep your certificate, because the provider and the first mortgage lender both ask for it before closing.

Step 4: Get pre-approved with a provider-approved lender

Ask the provider which lenders already close its assistance, then get a pre-approval that shows the down payment assistance as a grant or second lien. If you also want OHCS Flex Lending's 4% or 5% second, choose an OHCS-approved Flex lender, since OHCS says Flex can be paired with this assistance. The lender sizes the first loan around both.

Step 5: Find a home and request your award

Once your offer is accepted, send the contract to the provider so it can commit funds. The award cannot exceed $60,000 or 20% of the price, whichever is less, so a $250,000 home caps out at $50,000. Veterans can direct up to 10% of the award toward repairs the lender requires before closing, such as roof or safety items.

Step 6: Close and keep the provider's terms

At closing you sign the provider's grant agreement or forgivable second lien, and the funds go to the down payment and closing costs. Read the forgiveness schedule and repayment triggers, because they vary by organization. For general questions, OHCS answers at 800-453-5511 or HCS_Housing.Info@hcs.oregon.gov, and visits to its Salem office at 725 Summer Street NE are by appointment.

Real Cost Example

Take a Eugene buyer purchasing a $440,000 home with an FHA loan. The 3.5% down payment is $15,400. Twenty percent of the price would be $88,000, so the $60,000 statewide ceiling is what limits an award here. The real amount comes from the Lane County provider, and this example assumes a $10,000 award from DevNW to keep it realistic.

Estimated closing costs in Eugene run $9,000 to $14,000. Using $11,000, the buyer needs $15,400 plus $11,000, or $26,400, at closing. A $10,000 award cuts that to $16,400 before any other help. Buyers who also negotiate a seller credit toward closing costs can shrink the remaining amount further, within FHA's 6% limit.

OHCS Flex Lending can be paired with this assistance. A 4% Flex second on the $432,031 total FHA loan, including upfront mortgage insurance, adds $17,281. That covers the $16,400 gap and leaves $881 to reduce principal, within Flex's 1% cap. Combined help reaches $27,281 on a $440,000 Eugene purchase.

Combining With Other Programs

OHCS designed this assistance to pair with its Flex Lending first mortgages: FirstHome and NextStep add a 4% or 5% second that can cover up to 100% of cash to close. Inside Portland city limits, the Portland Housing Bureau's DPAL lends up to $80,000 to $100,000, and four DPAL intake partners, AAAH, Hacienda CDC, NAYA and PCRI, also hold OHCS awards. Fannie Mae HomeReady and Freddie Mac Home Possible first mortgages need only 3% down.

The award cannot push total help past the buyer's cash to close, and OHCS caps it at $60,000 or 20% of price. Some providers have no money left mid-year, since the fund depends on recording fees. A provider's grant or lien terms may restrict pairing with another local program, so ask before signing. OHCS can be reached at 800-453-5511.

Seller credits toward closing costs follow the first mortgage's rules, up to 6% of price on FHA loans. Veterans can also look at VA loans with no down payment, which leaves the OHCS award for closing costs and lender-required repairs. USDA loans offer the same zero-down route in eligible rural areas outside Oregon's larger cities.

Pros and Cons

This program's biggest strength is size: up to $60,000 is more than most state down payment programs offer, and it can come as an outright grant. Coverage is statewide through 21 county-based organizations, and the income limit sits at 100% of area median income, $128,300 for a Portland-area family of four in 2026. Buyers can qualify as first-time or first-generation purchasers, and veterans get a 25% reserve plus up to 10% of the award for lender-required repairs.

The biggest limitation is that amounts and availability are local. OHCS does not post statewide funding status, so a buyer may call a provider and find nothing open until the next award. Terms vary from grant to forgivable lien, and education plus counseling are mandatory. The 20% cap also limits awards on lower-priced homes. Buyers who need a predictable figure should compare OHCS Flex Lending's 4% or 5% second, and Portland buyers can check the city's DPAL.

Frequently Asked Questions

How much is Oregon's OHCS down payment assistance?+

Up to $60,000 or 20% of the purchase price, whichever is less. That is the statewide ceiling OHCS sets for the local organizations it funds, and veterans can receive up to $60,000 as well. The actual award depends on the provider serving your county and how much money it has, so many buyers receive less. Call the organization on OHCS's county list to learn its current amount.

Is OHCS down payment assistance a grant or a loan?+

Both forms exist, depending on the local provider. OHCS says the help is given as a grant or as a forgivable second lien, and each organization sets its own forgiveness period and repayment triggers. Ask for the written terms before you sign. A forgivable lien normally becomes due if you sell, refinance or stop living in the home before the forgiveness period ends.

What is the income limit for Oregon down payment assistance in 2026?+

100% of area median income for your county. In the Portland-Vancouver-Hillsboro area, HUD's 2026 median family income for four people is $128,300, so that is the Multnomah County ceiling for a household of four. Limits differ in other Oregon counties. The local provider calculates household income and confirms which limit applies to your family size. Ask the provider for its current chart, since HUD updates the limits every year.

Can veterans get extra Oregon down payment assistance?+

Yes. OHCS reserves 25% of its down payment assistance funds for Oregon veterans, with awards of up to $60,000 depending on program guidelines. Veterans can also use up to 10% of their assistance for repairs the lender requires, such as roof or safety fixes. Veterans who use a VA loan with no down payment can apply the award to closing costs instead.

Who gives OHCS down payment assistance in Portland?+

7 organizations hold OHCS awards for Multnomah County: African American Alliance for Homeownership, Habitat for Humanity Portland Region, Hacienda CDC, Native American Youth and Family Center, Portland Community Reinvestment Initiatives, Portland Housing Center and Proud Ground. Most can also provide the required homebuyer education. Contact them directly for current funding, because OHCS tells buyers each provider sets its own eligibility and availability. OHCS lists them on its award list PDF.

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