Down Payment Assistance Program

What is down payment assistance?

Down payment assistance programs, also known as DPA, provide funds to help cover some or all of your down payment, closing costs, or both, to buy a house.

​

How do down payment assistance programs work?

There are a number of city and county government programs available to help meet affordable housing needs throughout Oregon, to get more info on these programs, and get more info on down payment assistance in Oregon check out the Oregon Gov site > Oregon Gov DPA Info. There are also down payment assistance programs in Oregon available through various lenders (which mine is). Either way below is a description on the various types of down payment assistance in Oregon you'll find:

​

Types of closing costs and down payment assistance vary by program but common forms include:

• Grant: This is an outright gift of money.

• Zero-interest/forgivable loans: The loan for this type is forgiven over a certain period. The money will not need to be paid back if you still own and live in the home after the period is over.

• Zero-interest/deferred-payment loan: Terms and conditions vary depending on the program but usually payments on the down payment loan aren't due until the home is sold, you refinance the home, or the mortgage reaches the end of the term.

• Low-interest loan: Loan that must be repaid over a certain period, such as 10 years.

​

What type of down payment assistance do you offer?

My down payment assistance is through a lender I work with, and it's in the form of a Grant. It covers either 2% or 3.5% of the down payment. It does not cover closing costs, but there are other ways to possibly help with closing costs which I am more than happy to talk to you about.

​

Who can get down payment assistance?

My program helps a variety of borrowers, first-time home buyers, buyers looking to move to an underserved census tract, buyers who work or worked in certain professions, and those who make under a certain amount. Regardless of if you meet these criteria, you still must qualify for the loan. 

 

Who is an ideal candidate for the down payment assistance you offer?

My program helps people who have good stable jobs with decent income but for various reasons haven't been able to save the necessary down payment funds. It can help someone get in a home a year or two earlier than they might have otherwise.

 

What are the pros and cons of your program vs other down payment assistance programs in Oregon I might find?

Pros >

• Quick, only adds a few days onto the loan process.

• Eligibility criteria is very broad and I'm able to help a pretty good % of people provided they qualify for the loan.

• It's a Grant so the down payment assistance is forgiven.

• It's for the down payment and not closing costs, a lot of the Oregon down payment assistance only covers closing costs. 

​

Cons >

• Debt to income ratio of 48.99% or less to qualify.

• Interest rates are higher than you'd find on a normal FHA loan.