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Apply for a Down Payment Assistance Loan

The Down Payment Assistance Loan is designed with favorable terms to help first-time homebuyers purchase a home in Portland’s Interstate Corridor and Lents Town Center Urban Renewal Areas. The Down Payment Assistance Loan is a second mortgage loan funded by the Portland Housing Bureau.

How to Apply

Here's a step-by-step look at the process for getting a traditional Down Payment Assistance Loan (DPAL). For assistance in the Interstate Corridor Urban Renewal Area, applicants must be a part of the N/NE Homeownership Preference Policy:

  1. Contact one of the DPAL partners
    PCRI, Hacienda CDC, or MHAC (AAAH or NAYA). The homebuyer contacts one of the four DPAL Community Partners and makes an appointment with a homebuyer counselor.
     
  2. Meet with the Counselor
    The counselor explains the DPAL program and its requirements, including income limits, geographic restrictions, and education requirements. The counselor will also do an initial qualification assessment of the homebuyer, and if qualified assist filling out the DPAL application. The counselor will determine if the homebuyer is awarded DPAL funds and home much. Final approval is determined by Portland Housing Bureau.

PHB Application. The counselor helps the homebuyer fill out the PHB DPAL application, and then forwards it to PHB along with the homebuyer education class certificate, and the homebuyer financial information for the entire household.

  1. Pre-Approval
    The homebuyer selects a lender and obtains approval for a loan.
     
  2. Find a Home
    The homebuyer selects a realtor who helps the homebuyer look for homes in their designated geographic area (this is determined by the funding source of the assistance) and make an offer. When the seller accepts the offer, the homebuyer or realtor forwards the contract to the homebuyer counselor, who forwards it to PHB. This should be done as soon as possible to allow adequate time for PHB processing.
     
  3. Credit Package
    PHB requests the full credit package from the lender, including the appraisal. PHB then reviews the application and supporting documents within five business days of receiving a complete credit package. If necessary, PHB obtains any additional documentation from the lender. If qualified and approved, PHB issues a conditional reservation of DPAL funds to the homebuyer and sends a copy to the lender (or denies the DPAL application and the process ends).
     
  4. Closing
    At loan closing, the homebuyer signs all necessary DPAL documents and meets all outstanding conditions required for funding.
     
  5. Home Improvement Grant
    As soon after loan closing as possible, the homebuyer begins working with a PHB Construction Coordinator to identify eligible improvements and must expend the full amount of their Home Improvement Grant Fund within six months of loan closing.