Portland Down Payment Assistance Loan (DPAL)
Best For: First Time Homebuyers, Zero Down
Portland, OR first time homebuyers can receive up to $100,000 in forgivable down payment assistance for properties located within the city limits.
Program Description
The Portland Down Payment Assistance Loan (DPAL) is designed to assist Portland, OR homebuyers by offering a second loan with no payments and 0% interest of up to $100,000. This loan can be used for covering the down payment and closing costs, and can only be used for properties located within the city limits of Portland, OR. The borrower(s) must be first time homebuyer(s) and must not exceed the 100% AMI (Area Median Income Limits) in order to qualify. Homeownership counseling is required.
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Portland Down Payment Assistance Loan (DPAL)
Min. Credit Score
580
Min. Down Payment
0%
Max Loan Amount
$776,550
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Program Benefits
Benefit type: Up to $100,000 in Assistance
Type: Bond Deferred Payment Program - Forgivable
30-year term with all payments deferred until sale, refinance, or no longer occupied as primary home. Loan forgiveness begins on the 15th anniversary of the loan, with 50% forgiven then, and 3% of the original amount forgiven annually thereafter.
First Mortgage Program Option
This program can be used in tandem with the following first mortgage programs in order to help fulfill down payment requirements, pay closing costs, or provide other benefits. Learn all about how grants, bonds & 2nd mortgages work here.
- FHA Purchase Loan
- Conventional Purchase Loan
- VA Purchase Loan
- Chenoa Fund FHA Purchase Loan
- Chenoa Fund FHA Manufactured Home Purchase Loan
Pros & Cons
- Payment on assistance funds is deferred for the life of the loan
- Flexible assistance amounts of up to $80,000 - $100,00 in some situations
- Can be combined with a first mortgage loan from a participating lender
- More lenient income limits for larger households
- 0% interest on the assistance amount
- Strict selection criteria (
- Limited to 1-unit properties
- Limited funding available
- Not available to repeat homebuyers
Program Availability
Portland Down Payment Assistance Loan (DPAL)s are available in 1 state.
*Limited Availability: This program is only available within the city limits of Oregon (located within Multnomah County).
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“First time homebuyer needing big help with your down payment and closing costs? The Down Payment Assistance Loan from PHB is an easy way to make up for lack of available funds so long as you are purchasing a home within the Portland city limits."
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
50.00%
Purchase Price Limit
No Limits
Income Limit
$85,200
Annual Household (1-2) Income
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
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Key Features
- Up to $100,000 in down payment and closing cost assistance
- Property must be located within the city limits of Portland, OR
- Must be a first time homebuyer
Additional Conditions
- The home must be located within the city limits of Portland, OR
- You must qualify for a 1st position mortgage through a lender (can be FHA, VA or Conventional)
- Household income cannot exceed 100% of the Area Median Income (AMI)
- At the time of closing, the total amount of your liquid assets—which include cash, funds in bank checking and/or savings accounts, certificates of deposit (CDs), and similar assets—should not exceed $10,000
- The borrower must contribute a minimum investment of at least $500 towards the transaction (gift funds are permitted)
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class is required for this loan program.
Class Name: PHB Community Partner Counseling & HUD-Approved Homebuyer Education Course
In order to participate in the program, the individual must collaborate with a Homebuying Counselor from one of the PHB Community Partners and undergo an assessment to determine their readiness for obtaining a mortgage. Participants must successfully complete a homebuyer education class that has been approved by the US Department of Housing and Urban Development (HUD).
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
No Mortgage Insurance
This program does not require Private Mortgage Insurance (PMI).
Type: Program Origination Fee
Program origination fee and other third-party closing costs apply.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 2% 0%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
San Antonio HIP 120 New Construction
Best For: First Time Homebuyers, Zero Down
San Antonio new construction first time homebuyers can receive up to $15,000 in down payment and closing cost assistance within the city limits.
San Antonio HIP 120 Existing Home
Best For: First Time Homebuyers, Zero Down
San Antonio first time homebuyers of an existing home can receive up to $15,000 in down payment and closing cost assistance within the city limits.
Related Resources
Calculate Income Limits Using Area Median Income
Income limits are used to determine whether or not a home buyer is eligible for certain mortgage programs, including down payment assistance programs or incentives that can help make home buying more affordable. It identifies the maximum income level set by each housing authority for its program participants, and varies from county to county across the US. Often, the tool used to establish this maximum income level is often called Area Median Income, or AMI.
Read More
First Time Homebuyer Guide
Being a first-time homebuyer has its fair share of challenges. One of your biggest obstacles will be competing against other new or seasoned buyers. While bidding wars have tapered since the previous buying season, they can still occur.
Read More
2023 Down Payment Assistance Guide
Unless you're related to a dragon or leprechaun with a hoard of gold stashed away somewhere, chances are you are like one of the other 87% of homebuyers who need to finance their home purchase.
Read MoreVisit our Mortgage Education Center for more resources.
* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
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