Portland Down Payment Help: How to Qualify and Stretch Your Credits

First of all, you not not need 20 percent down. With the right mix of assistance programs, credits, and a smart offer, many Portland buyers get into a home with far less cash up front.

What counts as “down payment help”

• State and local assistance: Grants or forgivable loans for eligible first-time and repeat buyers

• Lender-paid options: Reduced mortgage insurance or special loan products

• Employer and nonprofit programs: Matching funds or housing partnerships

• Seller credits: Negotiated at offer time to cover closing costs or fund a rate buydown

Who typically qualifies

Most programs look at three things:

1. Income limits by household size and county

2. Price caps for the home you buy

3. Education like a homebuyer class or counseling

If you are just over an income limit, do not count yourself out. Some programs use median income tiers or allow higher limits in targeted areas.

How to stack benefits without breaking the rules

• Pair down payment assistance with a seller credit to cover closing costs so you keep more cash on hand

• Use a temporary or permanent rate buydown to lower the payment in years 1 to 3, then plan for a future refinance if rates improve

• Ask your lender if program funds can be used for prepaids like taxes and insurance, not just down payment

What this looks like in Portland and SW Washington

In our market, the best results come from a coordinated plan: identify the right program early, write an offer that requests the most useful credit, and lock in timelines that satisfy both the program requirements and the seller’s needs.

Common pitfalls to avoid

• Waiting to apply for assistance until after you are in contract

• Assuming you need 20 percent down to be competitive

• Requesting a credit amount that conflicts with program rules or loan-to-value limits

Our process at Sonder Northwest

• Match you with a program-savvy lender

• Pre-approve you with actual program guidelines, not guesses

• Structure your offer to maximize credits while staying compliant

• Keep the file on schedule so your funds are ready when you are

If buying in Portland or SW Washington is on your list, we can map a plan that reduces your cash-to-close and lowers your true monthly cost without stalling your timeline.