A guide for first-time buyers
A First-Time Buyer's Guide to Buying a Home in Portland
It may be your first time. It isn't ours.
Why this guide
Most people who want to buy their first home never find out whether they actually could. They look at a list price, look at an advertised rate, do the math in their head, and decide the answer is no.
That math is usually wrong. Not because the numbers are cheap, but because the list price and the advertised rate are two figures out of a dozen that determine what you can actually afford and what you'll actually pay.
This guide walks through what you really need, what the programs in Oregon and Portland can cover, what's negotiable, and the questions to ask before anyone writes an offer. 1,600 homes in, there's very little we haven't seen.
What you actually need
There are four numbers. Most people only know one of them.
01 Down payment
What it is: A percentage of the purchase price you pay up front.
What to know: Not 20%. Conventional loans start around 3%, FHA at 3.5%, and VA and USDA can be zero. The 20% figure only avoids mortgage insurance — it's not a requirement to buy.
02 Closing costs
What it is: Lender fees, title, escrow, appraisal, recording, prepaid taxes and insurance.
What to know: Typically 2–5% of the purchase price. Frequently negotiable — a seller can contribute toward them, and in a slower market many do.
03 Earnest money
What it is: A deposit showing you're serious, held in escrow and credited back to you at closing.
What to know: In Oregon this is negotiable and typically 1–3% of the purchase price. You get it back if you cancel within your contingency deadlines.
04 Inspection and appraisal
What it is: Paid out of pocket during the transaction, not at closing.
What to know: Budget several hundred to around a thousand dollars depending on the property and what specialists you bring in.
The number nobody mentions: reserves. Some loan programs require you to have a few months of payments left in the bank after closing. Ask your lender early — it's the requirement that surprises people at the finish line.
Programs that exist in Oregon and Portland
Most first-time buyers don't know these exist, and the ones who do assume they won't qualify. Income limits are higher than people expect.
Oregon Bond Residential Loan Program
What it offers: Below-market 30-year fixed rates through approved lenders, with a choice between the lowest rate (Rate Advantage) or cash assistance of 3% of the loan amount toward closing costs (Cash Advantage).
Who qualifies: First-time buyers, or anyone who hasn't owned a principal residence in three years. Income and purchase price limits apply.
OHCS Down Payment Assistance
What it offers: Up to $60,000 or 20% of the purchase price, whichever is less. 25% of funds reserved for Oregon veterans.
Who qualifies: First-time and first-generation buyers. Income limits apply.
Flex Lending: FirstHome and NextStep
What it offers: 4–5% down payment assistance.
Who qualifies: FirstHome is for first-time buyers. NextStep has broader eligibility.
Portland Down Payment Assistance Loan (DPAL)
What it offers: Down payment assistance for first-time buyers purchasing within Portland city limits.
Who qualifies: Income limits typically 80% or 100% of area median income depending on the funding source.
Homebuyer education
What it offers: Required for most Oregon assistance programs. HUD-approved courses are available online and in person.
Who qualifies: Arrive (formerly Portland Housing Center) offers counseling and education locally.
These programs stack. You can often combine state and local assistance. Your lender coordinates the paperwork — which is why the lender you pick matters as much as the rate they quote.
Getting an offer accepted isn't the same as getting a good deal
Price is one number. Here's the rest of what's on the table.
- Seller concessions toward closing costs. A seller can contribute to your closing costs. In a market where homes are sitting longer, many will.
- The rate you actually pay. A seller-funded rate buydown lowers your interest rate, sometimes for the first years of the loan and sometimes permanently. This is often worth more to you than an equivalent price reduction.
- Repairs. What the inspection turns up is negotiable. So is who does the work and when.
- The closing timeline. If you need more time, or less, that's a term like any other.
- What stays with the house. Appliances, window treatments, the shed, the hot tub. Put it in writing.
- The inspection itself — don't waive it. You can shorten the window or agree to a repair threshold. Going in blind on a house nobody has examined is how people inherit an expensive problem.
What we won't do: Talk you into a neighborhood or a property you don't actually want because it feels competitive out there. And we won't let "we got an offer accepted" pass for "this worked out well for you."
Questions to bring to each conversation
Take this list to the meetings. Check them off as you go.
Your lender
- What's the lowest down payment I can put down, and what does it cost me monthly?
- Do I qualify for the Oregon Bond program or any down payment assistance?
- What's my rate with and without points, and what does buying down cost?
- What are my total closing costs, itemized?
- Do I need cash reserves after closing?
- How long is my pre-approval good for, and what would invalidate it?
- What would a seller-funded buydown do to my payment?
Your agent
- What can I actually afford in the neighborhoods I care about?
- What's negotiable in this market beyond price?
- What should I never waive?
- What do the last six months of sales look like where I'm searching?
- How long from offer to keys?
Yourself
- What monthly payment am I comfortable with — not what I'm approved for?
- How long do I plan to be in this house?
- What's my cushion if something breaks in year one?
- Am I buying this because I want it, or because I'm afraid of missing out?
How our team helps
We start with your actual numbers, not a pre-approval letter. We'll tell you what's realistic, what's negotiable, and what to walk away from. Then we find it, negotiate it, and get it closed.
Your next step: Call us and tell us what you're trying to make work.
Jill Dehlin — Broker, OR + WA
M: 503-475-4991 · jill@sellingportlandrealestate.com
Rebecca Green — Founder · Broker, OR
M: 541-728-1143 · rebecca@sellingportlandrealestate.com
Disclaimer: This guide is general information, not legal, tax or financial advice. Program terms, income limits and funding availability change — confirm current details with your lender or Oregon Housing and Community Services. Figures are as of September 2026.
Sources: Oregon Housing and Community Services: Oregon Bond Residential Loan Program · Portland Housing Bureau: Down Payment Assistance Loan · OHCS: Down Payment Assistance Program · Arrive (formerly Portland Housing Center): homebuyer education and counseling
