Down Payment Assistance Loan

What is Down Payment Assistance Loan?

Down Payment Assistance Loan is a deferred second loan for homebuyers in Portland, Oregon.

• Portland Housing Bureau's Down Payment Assistance Loan provides up to $100,000 as a 0% interest, deferred-payment second mortgage to first-time homebuyers purchasing a home within the City of Portland. Administered through partner agencies (Portland Housing Center, Hacienda CDC, NAYA, African American Alliance for Homeownership, Proud Ground). The N/NE Preference Policy gives priority to applicants with generational ties to displaced North/Northeast Portland communities.
• Up to $100,000 in down payment and closing cost assistance as a 0% interest deferred-payment second mortgage. Loan is repaid upon sale, refinance, transfer, or when the home is no longer owner-occupied. Funds prioritized for buyers in N/NE Portland Preference Policy areas.
• Funding comes from City, TIF, and HOME.

Do you have to pay it back?

Down Payment Assistance Loan is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Sale, transfer, refinance (without subordination), or property no longer owner-occupied and full principal due (deferred).
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Down Payment Assistance Loan is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Down Payment Assistance Loan limits household income to 80% of the area median income, which varies by county and household size.

• Household income at or below 80% Area Median Income (AMI) for Portland-Vancouver-Hillsboro MSA. 2025-2026 80% AMI: 1-person $63,650; 2-person $72,750; 3-person $81,850; 4-person $90,900; 5-person $98,200. Higher tier for some partner-agency programs allows up to 100% AMI ($163,812 for larger households).
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Down Payment Assistance Loan caps the purchase price as follows: Set by partner agency / PHB underwriting; typically aligned with FHA loan limits or Portland market value.

• Eligible property types include 1-unit single-family, condominium, townhome, attached PUD and some partner agencies allow 2-4 unit owner-occupied.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Down Payment Assistance Loan serves buyers purchasing in Portland, Oregon.

• The program targets specific areas: N/NE Portland Preference Policy area (census tracts in N/NE Portland with history of displacement).

How do you apply?

Applications for Down Payment Assistance Loan go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved housing counseling agencies including Portland Housing Center, Hacienda CDC, Native American Youth and Family Center (NAYA), African American Alliance for Homeownership, Proud Ground.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application through PHB partner agency; funds reserved upon counseling completion and pre-approval, and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.