OHCS FirstHome Loan Program Overview
The Oregon Housing and Community Services (OHCS) FirstHome program is a state-sponsored initiative designed to assist eligible Oregon homebuyers in securing affordable 30-year fixed-rate financing alongside structured down payment and closing cost assistance.
Funds are applied directly toward required down payment and standard allowable closing costs to minimize immediate cash-to-close obligations.
Structured as a 0% interest, no-monthly-payment second mortgage. Balances typically forgive systematically over a designated ownership term if occupancy criteria are met.
Single-family detached homes, approved condominiums, townhomes, and certain manufactured homes permanently affixed to real estate qualify.
Core Eligibility Requirements
Participation depends on meeting verified underwriting parameters set by state administrators and participating mortgage lenders.
First-Time Homebuyer Definition
Applicant must not have owned a principal residence within the previous three years. This requirement is waived for qualified target areas and eligible veterans.
Service Member & Veteran Option
Military veterans and active-duty personnel may qualify for exemptions from the standard three-year prior homeownership restriction under specific state guidelines.
Household Income Limits
Total gross household income must fall at or below county-specific thresholds established annually by Oregon Housing and Community Services.
Approved Primary Financing
Must be paired with a participating 30-year fixed-rate first mortgage such as FHA, VA, USDA Rural Development, or Conventional Fannie Mae / Freddie Mac options.
Representative County Income & Purchase Price Limits
Figures are subject to periodic state updates and vary by county and family size.
| Regional Area | 1-2 Person Household | 3+ Person Household | Max Purchase Limit |
|---|---|---|---|
| Portland Metro (Multnomah, Washington, Clackamas) | $114,400 | $131,560 | $600,000 |
| Willamette Valley (Marion, Polk, Lane, Benton, Linn) | $98,200 | $112,930 | $525,000 |
| Central Oregon (Deschutes, Crook, Jefferson) | $106,800 | $122,820 | $565,000 |
| Southern & Eastern Oregon (Jackson, Klamath, Umatilla, Coos) | $89,500 | $102,925 | $475,000 |
Source: Oregon Housing and Community Services official program guidelines and county schedule tables.
Frequently Asked Questions
Clear guidelines on qualifying limits, program combinations, forgivable grants, and loan options for Oregon homebuyers.
Comparing FirstHome vs. NextStep Requirements?
Program guidelines and income limits differ across counties and loan types. Check qualifying parameters, silent seconds, and grant stacking before submitting an application.
Many borrowers successfully utilize FHA manual underwriting guidelines, non-traditional credit histories, and free state-sponsored HUD counseling to raise their score within 60 to 90 days.
OHCS FirstHome vs. OHCS NextStep
Oregon Housing and Community Services offers two primary state assistance pathways. Compare eligibility rules, income thresholds, and down payment support side-by-side to find the right fit.
Up to $15,000 in Down Payment & Closing Assistance
Strict first-time buyer criteria or target tracts
Forgivable options or 0% deferred loans
Up to $20,000 depending on loan structure
No prior ownership restrictions; higher income limits
Forgivable after tenure or structured second lien
Detailed Program Specifications
Compare key rules and structural terms side by side.
| Category | OHCS FirstHome | OHCS NextStep |
|---|---|---|
Target AudienceFirstHome focuses strictly on true first-time buyers or targeted areas. | First-time homebuyers (no homeownership in past 3 years) | Repeat buyers, move-up buyers, & first-time buyers |
Household Income LimitsNextStep accommodates higher earner tiers across urban and rural counties. | Lower to moderate (typically 80% to 100% Oregon Area Median Income) | Higher caps (up to 115%–140% Area Median Income by county) |
Down Payment Assistance (DPA)Both provide meaningful cash assistance for initial down payment and closing costs. | Up to $15,000 (or up to 4%–5% assistance in select sub-programs) | Up to $20,000 (or tiered secondary loan options based on lender tier) |
Repayment TermsStructure depends on participating approved lender and specific county funding. | Forgivable grant or deferred 0% second lien payable upon sale/refinance | Forgivable after specified tenure, or low-interest amortized second mortgage |
First-Time Buyer RequirementNextStep does not require a 3-year ownership lapse. | Strictly Required (except in designated target census tracts) | Not Required (ideal for buyers moving to a new primary residence) |
Compatible First MortgagesBoth coordinate with major federal loan structures for statewide coverage. | FHA, VA, USDA Rural Development, and Fannie/Freddie Conventional | FHA, VA, and Conventional (standard 30-year fixed) |
Unsure which Oregon program fits your income and location?
Answer 4 quick questions in the Find My Program tool to match with verified assistance programs for your county.