OREGON FIRSTHOME & NEXTSTEP HOME LOANS
Oregon Homebuyer Programs With Down Payment Assistance
Oregon Housing and Community Services (OHCS) offers two home loan options through Flex Lending: FirstHome and NextStep.
Both programs can help eligible Oregon buyers with a down payment. This may reduce the cash needed at closing.
We can explain how each program works and check whether you may qualify. We also compare these programs with your other loan options.
More Homeownership Opportunities
Down Payment Assistance for Eligible Buyers
First-Time and Repeat Homebuyers
Serving Homebuyers Throughout Oregon
Oregon FirstHome Loan Program
FirstHome mainly serves first-time buyers with low to moderate incomes. The home must be their primary residence in Oregon.
Eligible borrowers may receive 4% or 5% of the first mortgage loan amount in down payment assistance, depending on program eligibility. Assistance may cover up to 100% of the required cash to close. Eligible costs can include the down payment, closing costs, prepaid expenses, and other allowed costs.
FirstHome Highlights
• Designed primarily for first-time Oregon homebuyers
• 4% or 5% down payment assistance for eligible borrowers
• No minimum borrower investment required under the OHCS program
• Conventional, FHA, VA and USDA financing options available
• Credit scores may be accepted as low as 620, subject to applicable loan requirements
• Available for eligible owner-occupied homes located in Oregon
• Income and purchase-price limits apply
• Homebuyer education is required for first-time homebuyers
Certain veterans and buyers purchasing homes in designated targeted areas may qualify for an exception to the first-time homebuyer requirement.
Oregon NextStep Loan Program
NextStep expands OHCS homeownership assistance beyond first-time homebuyers.
Unlike FirstHome, you do not have to be a first-time homebuyer to qualify for NextStep. Previous homeowners must still meet the income, property, and loan requirements.
NextStep combines a fixed-rate first mortgage with down payment assistance for eligible borrowers.
NextStep Highlights
• Available to first-time and repeat homebuyers
• 4% or 5% down payment assistance for eligible borrowers
• Assistance may cover eligible down payment, closing costs, prepaid expenses and other allowable costs
• No minimum borrower investment required under the OHCS program
• Conventional, FHA, VA and USDA financing options available
• Credit scores may be accepted as low as 620, subject to applicable loan requirements
• Available for eligible owner-occupied homes in Oregon
• Income limits apply
• First-time homebuyers using NextStep must complete homebuyer education
FirstHome vs. NextStep: What’s the Difference?
The biggest distinction is who each program is designed to serve.
FirstHome is primarily intended for eligible first-time homebuyers and includes household income and purchase-price requirements.
NextStep allows both first-time and previous homeowners to qualify and provides expanded eligibility for Oregon buyers who may not fit the FirstHome requirements.
Both programs can provide valuable down payment assistance, but the right option depends on your income, homebuyer history, property, financing type and overall financial profile.
Compare the Second Mortgage, Not Just the Assistance Amount
Both Oregon FirstHome and NextStep can pair a first mortgage with OHCS down-payment assistance through a second mortgage. Some second mortgages are repayable with monthly payments. Others may be forgivable if the required conditions are met. The terms depend on the program and qualifying income tier. A sale, refinance, transfer, or change in how you use the home may trigger repayment before the loan is forgiven. This includes renting out the home or no longer using it as your primary residence. These details are different from the first mortgage’s rate and payment.
Ask us to show:
- The first- and second-mortgage obligations together
- Cash needed at closing
- When any second-loan payment begins
- What happens if your plans change
The current rules are described by Oregon Housing and Community Services, including its FirstHome conventional product summary and NextStep government product summary. Eligibility, loan structure and documents must be reviewed for the specific transaction.
Feature
FirstHome
NextStep
Who can qualify?
Primarily first-time homebuyers
First-time and repeat homebuyers
Down payment assistance
4% or 5% for eligible borrowers
4% or 5% for eligible borrowers
Minimum borrower investment
None under the OHCS program
None under the OHCS program
Loan options
Conventional, FHA, VA, USDA
Conventional, FHA, VA, USDA
Credit score
May be accepted as low as 620, subject to applicable requirements
May be accepted as low as 620, subject to applicable requirements
Income limits
Yes
Yes
Homebuyer education
Required for first-time homebuyers
Required for first-time homebuyers using NextStep
Can Down Payment Assistance Help You Buy a Home in Oregon?
For many buyers, saving for the down payment and closing costs is the main hurdle.
OHCS assistance may reduce the cash an eligible buyer needs at closing. Depending on the program and your qualifications, assistance may be used toward eligible down payment, closing costs and other permitted expenses.
Program limits, interest rates and eligibility requirements can change, so qualification should be reviewed using current OHCS guidelines.
Find Out Whether FirstHome or NextStep Fits Your Plans
Choosing a homebuyer assistance program shouldn’t be based on the amount of assistance alone.
Your interest rate, monthly payment, mortgage insurance, cash required at closing and long-term financing goals should all be considered.
Platinum Lending Solutions can review your situation and help you compare an OHCS FirstHome or NextStep loan with other mortgage programs for which you may qualify.
Explore Your Oregon Homebuyer Options
Whether you’re preparing for your first home purchase or you’ve owned a home before, we’re here to help you determine which Oregon homebuyer program may fit your goals.
Program availability, interest rates, income limits, purchase-price limits, down payment assistance and eligibility requirements are subject to change. All borrowers must meet applicable OHCS, loan program, lender and underwriting requirements. Down payment assistance is provided through a second mortgage and may be forgivable or repayable depending on borrower eligibility and income. Additional program terms apply.
