Overview
Oregon is a high-cost market: the statewide median home value sits near $495,000, and metros like Portland, Bend, and Eugene push well above that. The state's housing authority, Oregon Housing and Community Services (OHCS), exists to bridge that affordability gap for first-time and moderate-income buyers. The real challenge here is the down payment — on a half-million-dollar home, even 5% is $25,000 — so Oregon's programs focus on either cutting your interest rate or handing you cash for closing. One bright spot: Oregon has no state sales tax, which keeps more of your paycheck available to save toward a home.
The flagship is the Oregon Bond Residential Loan, which OHCS offers in two flavors you choose between. Cash Advantage gives you a slightly reduced mortgage rate plus up to 3% of your loan amount as cash toward your down payment or closing costs — and crucially, that 3% is a grant, not a loan, so it never has to be repaid. Rate Advantage instead gives you an even lower below-market interest rate but no cash assistance, maximizing your long-term savings if you can cover closing costs yourself. Both require first-time buyer status (no ownership in three years), an OHCS income and purchase-price limit, a primary residence, and homebuyer education.
State Programs
Oregon Bond Residential Loan — Cash Advantage
Grant (cash toward down payment/closing) plus reduced-rate first mortgageOregon Bond Residential Loan — Rate Advantage
Below-market first mortgage rate (no cash assistance)OHCS-Funded Down Payment Assistance Grants
Down payment/closing-cost grants (terms vary by partner)Portland Down Payment Assistance Loan (DPAL)
Forgivable 0% second mortgage (50% forgiven at year 15, balance by year 30)Federal Programs Available in Oregon
These nationwide programs can be combined with Oregon state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in Oregon
Beyond the Bond loan, OHCS funds down payment assistance grants distributed through local nonprofits and community organizations across the state, so depending on your county you may be able to stack additional help on top of a Bond loan — ask a participating lender what's available where you're buying. Repeat buyers aren't automatically shut out either: the Oregon Bond loan extends to veterans and to buyers in designated target areas even if they've owned before. Because these local DPA pools are funded in cycles and vary by region, the specific dollar amounts shift, so confirm current offerings rather than relying on a fixed figure.
Oregon's tax picture is a trade-off. There's no sales tax, but the income tax is among the nation's highest, with graduated 2026 rates of 4.75%, 6.75%, 8.75%, and a 9.9% top rate kicking in above $125,000 of taxable income — so a typical buyer earning, say, $70,000 pays mostly in the 8.75% band. The upside for homeowners is property tax: Oregon's effective rate is a low 0.81%, and Measure 5/50 caps how fast assessed value can grow. That means a $495,000 home runs roughly $4,000 a year, modest relative to the home's price.
Local programs are where Oregon gets generous. The Portland Housing Bureau's Down Payment Assistance Loan offers first-time buyers within city limits a second mortgage of roughly $80,000 to $100,000 at 0% interest with no monthly payments — half is forgiven at year 15 and the balance by year 30, leaving you owing nothing if you stay. It requires income at or below 100% of area median and a minimum $500 of your own funds. Military buyers near the Oregon National Guard's installations can pair a VA loan with OHCS help. Next steps: confirm OHCS income and price limits with a participating lender, complete required homebuyer education, and book a free HUD-approved housing counselor session.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: June 15, 2026.