What Are Down Payment Assistance Programs?
Down payment assistance (DPA) helps eligible buyers pay some or all of the down payment. Some programs also help with closing costs. Assistance can take several forms, including grants and second loans.
You may not need a large down payment to buy a home. If you qualify, assistance may reduce the cash you need at closing.
Platinum Lending Solutions helps Oregon and Washington homebuyers review mortgage and down payment assistance options available through participating lenders, where applicable. Our Oregon homebuyer programs page explains Oregon state-sponsored options. CHENOA and other assistance have their own program and lender requirements. We do not represent that we offer every state or local assistance program in either state.
How Does Down Payment Assistance Work?
Down payment assistance can come from state and local housing agencies, nonprofit organizations, and participating mortgage lenders. Some options are grants. Others are second mortgages. You may need to repay the loan, delay payment until a later event, or meet conditions for the debt to be forgiven. Not all assistance is free money, and some programs affect the mortgage’s rate, monthly payment, or total borrowing costs.
The type of assistance available depends on the property location, participating lender, loan program, and borrower qualifications.
The assistance may be used for:
- Down payment funds
- Closing costs
- Prepaid expenses
- Certain homebuyer-related expenses
Program availability, qualification requirements, and benefit amounts vary depending on the location and program.
What Qualifies for Down Payment Assistance?
Eligibility requirements differ by program, but common factors may include:
- Income limits
- Property location
- Occupancy requirements
- Homebuyer education completion
- First-time homebuyer status (for some programs)
- Credit and mortgage qualification requirements
Not all down payment assistance programs require borrowers to be first-time homebuyers.
What Types of Down Payment Assistance Are Available?
Check Whether Assistance Is a Grant or a Second Loan
The assistance amount is only one part of the comparison. A second mortgage may require regular payments or delay repayment until a later event. Some loans may be forgiven if you meet specific conditions. Read the repayment rules. Selling, refinancing, transferring the home, or changing how you use it may trigger repayment before the loan is forgiven. The loan documents set those rules.
Compare these costs and conditions:
- Second-loan balance and payments
- Conditions for loan forgiveness
- First-mortgage payment
- Other closing costs
- Your own cash needed at closing
For specific Oregon examples, see the OHCS Flex Lending information and our Oregon program comparison.
Can First-Time Homebuyers Use Down Payment Assistance?
Yes. Many down payment assistance programs are designed specifically for first-time homebuyers.
However, some programs are available to repeat buyers who meet the eligibility requirements.
Because every program is different, it is important to review available options with a mortgage professional.
Can Down Payment Assistance Be Combined with Other Loan Programs?
In many cases, yes.
Eligible borrowers may be able to combine down payment assistance with:
- Conventional loans
- FHA loans
- VA loans
- USDA loans
- Other eligible mortgage programs
Specific combinations depend on the particular assistance program and participating lender. CHENOA is not available with every first-mortgage type. Eligibility should be confirmed before applying.
Do I Need a Large Down Payment to Buy a Home?
Not necessarily.
You do not always need 20% down. Many loan programs allow qualified buyers to put down less. Assistance may further reduce the cash needed at closing.
The amount required depends on the loan program, property, borrower qualifications, and available assistance options.
Common Down Payment Assistance Questions:
Some programs provide grant funds that generally do not require repayment if program requirements are met. Other programs provide loans that may need to be repaid under certain circumstances.
Assistance amounts vary by program and location. Available benefits depend on the specific program’s guidelines and borrower eligibility.
No. Credit requirements vary by program, and many assistance programs are designed to help qualified buyers with a range of credit profiles.
In some cases, yes. Program guidelines determine whether gift funds may be combined with assistance benefits.
Down Payment Assistance Options in Oregon and Washington
Oregon state-sponsored programs: Oregon Housing and Community Services (OHCS) offers FirstHome and NextStep through approved lenders for eligible Oregon homebuyers. Each has its own income, property, education, loan, and second-mortgage requirements. See our Oregon Homebuyer Programs page and the official OHCS Flex Lending information.
CHENOA Fund: Chenoa Fund, administered by CBC Mortgage Agency and made available through participating lenders, lists both Oregon and Washington among its eligible states. Depending on current program guidelines and borrower qualifications, assistance may be structured as a repayable or potentially forgivable second mortgage. See the program’s state availability list and current program guidance.
Lender-specific assistance: Other portfolio or lender-sponsored assistance programs may also be available for eligible borrowers in Oregon and Washington through participating lenders. Availability, permitted first-mortgage programs, assistance amounts, second-lien terms, and qualifications vary and must be confirmed for each loan scenario.
Platinum Lending Solutions can review the options available through its participating lenders for your particular transaction. We are not representing that we offer every state or local assistance program in either state.
We help Oregon and Washington homebuyers review mortgage programs and down payment assistance options available through participating lenders, where applicable. Our review can include:
- Discussing which current programs may fit your property, finances, and homeownership plans
- Comparing assistance structured as a grant, repayable loan, deferred loan, or potentially forgivable second mortgage, when available
- Reviewing first- and second-mortgage payments, financing costs, program conditions, and estimated funds needed at closing
- Explaining applicable homebuyer education, income, occupancy, and documentation requirements
- Preparing for a mortgage pre-approval consultation and next steps toward a formal loan application
Eligibility, loan approval, program funding, and final terms depend on the participating lender and applicable requirements.
Review Your Down Payment Options
Assistance may help with your down payment or closing costs if you qualify. Compare the cash saved today with any added payments, fees, and repayment rules. We can help you review the options available through our participating lenders.
Related case study: How Down Payment Assistance Helped Two Buyers Bridge the Gap to Homeownership
