Buying your first home in Oregon doesn't have to drain your savings account. The state offers several robust programs designed specifically to help Oregon first-time home buyer families achieve homeownership without breaking the bank.
Let's dive into the programs that can make your homeownership dreams a reality.
Oregon Housing and Community Services (OHCS) Programs
The backbone of Oregon's homebuying assistance comes through OHCS, which offers three main programs for qualifying buyers.
Rate Advantage Program
This program provides below-market interest rates on conventional, FHA, VA, and USDA loans. The Oregon Bond Residential Home Loan Program offers a selection of low-rate mortgages — including conventional, FHA, VA, and USDA loans, making monthly payments more manageable for first-time buyers.
Read here to learn more about mortgage loan programs.
Cash Advantage Program
Here's where things get exciting for Oregon first-time home buyer families. The Cash Advantage option includes a below-market rate mortgage and 3 percent of the loan amount provided as down payment assistance. On a $300,000 home, that's $9,000 in free money toward your purchase.
Flex Lending Program
This newer program offers more flexible underwriting guidelines for buyers who might not qualify for traditional financing but still demonstrate the ability to make mortgage payments.
Down Payment Assistance That Helps
The program offers first-time homebuyers who meet the eligibility requirements: closing costs and down payment assistance in amounts up to 20 percent of the purchase price or up to $60,000. This is almost always supplied in a forgivable loan, so it does not have to be paid back once past a certain length of living on the property.
Tax-Advantaged Savings Options
Oregon goes beyond just loans and grants. The Oregon Department of Revenue provides savings accounts that have tax-advantaged savings in the home ownership education savings accounts, which are accessible to interested first-time home buyers, to save up funds to pay down payment on a single-family home. These savings enable you to put money away tax-free to buy a home.
Read here to learn more about First-time Home Buyer Savings Accounts.
Who Qualifies?
Most Oregon first-time home buyer programs require:
- Household income at or below 80% of the area median income
- Completion of a homebuyer education course
- Meeting standard loan qualification requirements
- Being a first-time buyer (or not owning a home for three years)
Income limits vary by county, so a family earning $70,000 might qualify in one area but not another.
Local Programs Worth Exploring
In addition to the programs available via the state, lots of cities and counties in Oregon also provide extra assistance. Locally, there are lower fares in Portland, Salem, and Eugene, and they could be used along with the programs offered by the state to make savings even possible.
Getting Started
The application process typically involves:
- Attending a homebuyer education class
- Getting pre-approved with a participating lender
- Finding a home within program price limits
- Submitting your assistance application
Most programs operate on a first-come, first-served basis, so timing matters..
Frequently Asked Questions
What counts as a first-time home buyer in Oregon?
You count as a first-time buyer if you've never owned a home for three years. That includes those who used to own homes but sold those three or more years ago.
Can you combine multiple Oregon home buyer assistance programs?
Yes, many programs can be stacked together. As an example, you may combine OHCS down payment assistance, a city-specific program, and tax-advantaged benefits of the savings accounts.
How long does it take to get approved for Oregon first-time buyer programs?
The time of processing depends upon the program, but the majority of them take 30 to 45 days after the approval application. The process can also be accelerated by commencing the homebuyer education course early, as it is a prerequisite for most of the programs.
Conclusion
The cash requirement to buy a house can be greatly mitigated by first-time buyer programs in Oregon. These programs have the potential to save buyers as much as $10,000 to $30,000 on their house purchase through down payment assistance, lower interest rates, and tax benefits.
The secret is in knowing what programs you may be eligible for and collaborating with lenders who have experience with these forms of assistance.
Are you ready to make your next step towards purchasing a home in Oregon? At Trinity Capital Funding, our financing specialists are familiar with the nuances of the first-time buyer programs in Oregon. We can guide you through the whole application procedure. Go to trinitycapitalfunding.com and reach experienced loan officers who know how to maximize your purchasing power through these helpful benefits provided by the state.
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