Down Payment Assistance in Oregon: What Buyers in Clackamas County Should Know

The down payment is the number that stops most first-time buyers cold — but in Oregon, and especially in Clackamas County, there's a lot more help available than most people realize. Programs through the state, the county, and federal housing funds can cover thousands toward your down payment and closing costs. Some of it doesn't even need to be paid back.

Here's a clear breakdown of what's out there, who qualifies, and how to actually use these programs.

The Oregon Bond Residential Loan Program

The Oregon Bond program is the state's flagship mortgage product for first-time buyers, and it does two things well: it keeps your interest rate lower than market, and it gives you options for handling your down payment.

There are two tracks. Rate Advantage gives you a below-market 30-year fixed rate, which lowers your monthly payment and helps you qualify for more home. Cash Advantage gives you a slightly higher rate but pairs it with up to 3% of the loan amount in cash toward your down payment and closing costs. If you're short on liquid savings, the Cash Advantage path is worth a serious look.

Both tracks pair with FHA, VA, USDA, or conventional loans, and both require that you be a first-time buyer — meaning you haven't owned a home in the past three years. That requirement is waived if you're purchasing in a federally designated "targeted area," which includes parts of Clackamas County. Income limits for Clackamas County borrowers are set annually by OHCS and governed by IRS guidelines; as of 2024, they ran around $124,871 for households of 1-2 people in non-targeted areas. Check OHCS directly for the most current 2026 figures, as these limits are updated mid-year.

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OHCS Down Payment Assistance: Up to $60,000

Oregon Housing and Community Services runs a separate Down Payment Assistance program that can provide up to $60,000 or 20% of the purchase price, whichever is less. The funds typically come as a grant or forgivable second lien — meaning many buyers never repay them.

To qualify, you need to be a first-time buyer or a first-generation homebuyer (someone whose parents or guardians did not own their home), and your household income must be at or below 100% of the Area Median Income. For the Portland-Vancouver-Hillsboro metro, which covers Clackamas County, that's been roughly $86,870 for a single-person household and scales up with household size. Buyers are also required to complete a HUD-approved homebuyer education course and meet with a certified housing counselor before the funds are released.

One important note: 25% of these funds are reserved specifically for Oregon veterans and their families. If you or a co-borrower served, this is worth asking about directly — the veteran DPA track also allows up to 10% of the assistance amount to go toward lender-required repairs, which is a detail most buyers miss.

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The OHCS Flex Lending NextStep Program

If your income is above the thresholds for the Oregon Bond program but you're still working on your down payment, the Flex Lending NextStep program is worth knowing about. It's open to any Oregon buyer earning $125,000 or less annually — with no first-time buyer requirement.

Under NextStep, eligible borrowers receive 4% of the first mortgage loan amount as down payment and closing cost assistance. Borrowers who fall within certain AMI tiers may qualify for 5% through what OHCS calls the Focused Demographics track. The assistance comes as a second mortgage rather than a grant, and the terms depend on your income tier. For buyers who've been locked out of FHA or conventional loans due to lack of saved funds, this program fills a real gap.

Eligible property types are broad: single-family homes, condos, townhomes, manufactured homes on real property, homes with ADUs, and even 2-4 unit properties. Clackamas County is fully covered under this program.

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Clackamas County's Local Programs

Beyond what OHCS offers statewide, Clackamas County runs its own homebuyer assistance programs through its Community Development division, funded by federal CDBG (Community Development Block Grant) and HOME Investment Partnerships dollars.

The Clackamas Homebuyer Assistance Program provides deferred loans — zero-percent interest — to low-to-moderate income first-time buyers purchasing within Clackamas County. "Deferred" means no payments are due until you sell, refinance, or move out of the home. It's essentially an interest-free second mortgage that sits quietly behind your first loan.

There's also the NCRA program, which provides loans and grants with favorable terms for lower-income households. Contact Clackamas County Community Development to get specifics on what's currently funded and available, since these program pools can fluctuate based on grant cycles. Income limits for these local programs are typically set at 80% or 100% of AMI for the Portland-Vancouver-Hillsboro metro — for a household of four, 80% AMI has been approximately $95,700.

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What the Market Looks Like Right Now

Understanding these programs matters more in a market where prices have moved. According to Redfin data, the median sale price in Oregon City — one of Clackamas County's most active markets — was $581,000 as of February 2026, up 3.8% year over year. Homes there have been selling in around 18 days on average.

At that price point, a conventional loan with 5% down requires about $29,050 upfront, not counting closing costs. Add 2-3% in closing costs and you're looking at $40,000-$47,000 to close. That's a real number. Programs that can contribute $15,000 to $25,000 — or in some cases up to $60,000 — change what's actually within reach.

For Canby, Redfin data from early 2026 showed a median sale price of $546,000 with homes moving in roughly 22 days. The math is similar: significant upfront costs that assistance programs can meaningfully offset.

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What This Means for You

You may qualify even if you think you earn too much. The NextStep program extends up to $125,000 in annual household income, which covers a wide range of buyers in Clackamas County. The Oregon Bond program's income limits are also set at a level that includes many middle-income households — they're not just for very low-income buyers.

The programs stack. An Oregon Bond Rate Advantage loan can sit alongside OHCS DPA funds or local Clackamas County assistance. Your lender's job is to structure the combination that makes the most sense for your income, purchase price, and loan type. Not every lender participates in these programs, so ask specifically whether they're an OHCS-approved lender before you get deep into the process.

The homebuyer education requirement isn't a hurdle — it's useful. Most programs require a HUD-approved homebuyer education course. These are available online, typically take four to six hours, and cover the mortgage process, what to expect at closing, and how to avoid common first-time buyer mistakes. Many buyers say they wished they'd had the information earlier.

Timing matters more than you think. DPA funds — especially county-level programs — are often limited and distributed on a first-come, first-served basis once approved. Getting pre-approved and working with an OHCS-approved lender before you start touring homes puts you in a much stronger position.

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Jennifer Schurter serves buyers, sellers, and investors throughout South Clackamas County and the North Willamette Valley — including Canby, Oregon City, Wilsonville, Aurora, Hubbard, Molalla, Woodburn, Newberg, Sherwood, Tualatin, West Linn, Lake Oswego, and the greater Portland metro south. Her goal is simple: to be the most knowledgeable, most responsive, and most genuinely helpful real estate agent in the area — every single time. Jennifer is a licensed Oregon real estate broker with Real Broker LLC.

Ready to talk through your next move? Schedule a time with Jennifer here. No pressure, no pitch — just a real conversation.