The Down Payment Assistance Loan is designed with favorable terms to help first-time homebuyers purchase a home within the city limits of Portland. The Down Payment Assistance Loan is a second mortgage loan funded by the Portland Housing Bureau (PHB).
See the eligibility requirements for this program. Eligibility & Terms
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:
- 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.
- Meet with the Homebuyer Counselor
The homebuyer counselor explains the DPAL program and its requirements, including income limits, eligible geographic areas, and homebuying 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 how much. Final approval is determined by Portland Housing Bureau.
PHB Application. The homebuyer 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.
The homebuyer selects a lender and obtains approval for a loan.
- 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.
- 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).
At loan closing, the homebuyer signs all necessary DPAL documents and meets all outstanding conditions required for funding.
- Home Improvement Grant
Depending on funding source of the DPAL award, the homebuyer begins working with a PHB Construction Coordinator, as soon as possible after loan closing, to identify eligible improvements and must expend the full amount of their Home Improvement Grant Fund within six months of loan closing.