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Portland Housing Bureau

Solving the unmet housing needs of the people of Portland.

Phone: 503-823-2375

fax: 503-823-2387

421 SW 6th Avenue, Suite 500, Portland, OR 97204

More Contact Info

Eligibility & Terms

Eligible Homebuyers

To qualify you must:

  • Actively work with and have your application accepted by one of the MHAC partners
  • Be a first-time homebuyer (defined as not having owned a home in the past three years)
  • Maintain the home as your primary residence
  • Have an annual household income at or below 80% of Portland’s Median Family Income (MFI 2013), adjusted for family size as follows:   

Household Size

Income

1 person $38,850
2 persons $44,400
3 persons $49,950
4 persons $55,500
5 persons $59,950
6 persons $64,400
7 persons $68,850
8 persons $73,300
  • Meet first mortgage lender’s financing requirements
  • Maintain no more than $10,000 in combined liquid assets (cash and equivalent, stocks, bonds and bank account balances, excluding retirement accounts) at closing
  • Be a US citizen or legal resident
  • Complete a US Department of Housing and Urban Development (HUD) approved homebuyer education class
  • Provide a minimum borrower investment of no less than $1,000 (gift funds are allowed)

There are no ongoing income limits or annual income certifications for the program.

 Eligible Property

  • Residential properties located in the Interstate Corridor (detailed Interstate East side or West side), Gateway Regional Center, or the Lents Town Center Urban Renewal Areas (URA); subject to available funding.
  • Single-family units only, including existing condos and town homes; new condos are not eligible.
    • Short Sales are not eligible unless the buyer can document that all lien holders have already agreed to the sale price and closing is possible within the standard time period (typically 30 to 45 days)
  • Maximum sale price of $273,200 (2013)

 Loan Terms

  • Maximum loan amount is $32,000, plus an additional grant of 25% of the loan amount (maximum $8,000) for a Home Improvement Grant (see below)
  • 15-year loan term
  • 0.00% interest per year with an Annual Percentage Rate (APR) of 0.012%
  • At end of 11th year and every year thereafter, 20% of the loan is forgiven; after the 15th year, the loan is completely forgiven
  • Payments are deferred until the sale of the home, refinance of the first mortgage, or when no longer occupied as primary residence; at such time, the entire principal balance is due
  • Must be used with a first mortgage loan from a participating lender
  • $500 underwriting fee plus other third party closing costs apply

 Home Improvement Grant Fund

  • An additional 25% of the loan amount will be granted to the homebuyer and will be deposited into a Home Improvement Grant Fund managed by PHB (dispursements subject to PHB approval)
  • Grant funds must be spent on eligible improvements within six months of loan closing
  • Once Home Improvement Grant Fund has been disbursed and closed, no more property inspections are required