City of Portland Down Payment Assistance Loan (DPAL)
Financial Assistance for Homebuyers in Oregon
The Down Payment Assistance Loan is a second mortgage loan funded by the Portland Housing Bureau (PHB), and it is used in conjunction with a first mortgage loan from a participating lender.
DPAL award amounts can be up to $80,000 - $100,000, depending on funding source and location of home. Depending on funding source of the DPAL award, a minimum of 10% of the award will be set aside as a grant for post-purchase Home Improvement. (See below for more about the Home Improvement Grant Fund.) The assistance comes with a 30-year loan term, zero-interest per year with an Annual Percentage Rate (APR) of 0.012%
To qualify, all applicants must be working with a Homebuying Counselor at one of the Community Partners (see above) and assessed to be mortgage ready, and be first-time homebuyers (defined as not having owned a home in the past three years). They must have an annual household income at or below 100% of Portland’s current Area Median Income (AMI), adjusted for family size. Applicable household income limits are determined by funding source and/or bedroom size of the home to be purchased, and in some cases may be set at a maximum annual household income of at or below 80% AMI. The Homebuying Counselor will confirm the income limit of the award.
Applicants must maintain no more than $10,000 in combined liquid assets (cash, bank checking, and/or savings accounts, CD’s and equivalent) at closing, and provide a minimum borrower investment of no less than $500 (gift funds are allowed).
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but State and local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price, and income limits.
Note: All figures mentioned above were accurate at the time of publication and may no longer be current. Visit the program website for updated information
Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.
FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.
Down Payment Grants in Oregon
The Down Payment Assistance Loan (DPAL) is designed with favorable terms to help first-time homebuyers purchase a home within the city limits of Portland.
The City of Salem offers a number of services to address the community’s housing needs, including rehabilitating our current housing stock, developing new housing opportunities, assisting families to acquire housing, and enabling struggling families to remain in their homes.
Willamette Neighborhood Housing Services (WNHS), along with other organizations, aim to help individuals overcome the hurdles of homeownership by providing a combination of homebuyer education courses, counseling and financial assistance.
The First Time Home Buyer Program assists individuals overcome the hurdle of these upfront costs with zero-interest down payment/closing cost loans of up to $20,000 for low-income, first-time homebuyers purchasing within the City of Corvallis.
The Rogue Valley Association of Realtors (RVAR) together with the Oregon Association of Realtors (OAR) funds the HOME Foundation Buyers Assistance Grant. The program offers eligible homebuyers up to $1,000 to be used toward down payment, closing costs, or prepaid items.
Do you know what's on your credit report?
Learn what your score means.