Oregon Flex 0% Down Payment- New and Improved Zero Down Home Loan Programs Added

Updated Oregon Flex Loan Program – New 0% Down FirstHome & NextStep Programs

As of November 1st, the Oregon Flex Loan Program has evolved and split into two separate programs: FirstHome and NextStep. This change takes an already amazing szero down home loan program and further expands options and affordability for homebuyers with the rollout of FirstHome. Buyers across Oregon can utilize this program.

At its core, this is still a 0% Down Payment Assistance program from the State of Oregon, but with some exciting new changes. The two major upgrades include subsidized interest rates (0.5%-1% below market rates) for first-time borrowers in the FirstHome program with 0% down.  For those that fit in the FirstHome program but have their own down payment (3%-3.5% minimum), an even more heavily subsidized interest rate (1-1.5% below market rates). is available instead of down payment assistance. This was previously not offered at all.

The private lending and bank direct Zero down programs generally are the opposite, they offer 0% out of pocket in exchange for a heavily above market rate on your mortgage. Making them unaffordable or a waste of money for most.

My FLEX programs combine standard loan products, such as FHA, Conventional, VA, and others, as a primary loan, with a second loan from the state covering 4% or 5% to cover the down payment and part of the closing costs. With the current market competition we have been able to then ask sellers to pay the remaining closing costs. This allows for a $0 out of pocket purchase, making homeownership more accessible than ever. I originate both of these loans simultaneously through the State at the same time like a normal mortgage process.

I would love to chat more if you have any interest in exploring these options. Below is a deeper dive into each program.

FirstHome Program – Tailored for First-Time Homebuyers

The FirstHome program is specifically designed for first-time homebuyers, offering affordable benefits, including:

• Subsidized Rates Below Market: This program offers rates that are significantly lower than market rates, making it an excellent choice for first-time buyers. Rates typically range from 0.5%-1% below market for all FirstHome borrowers, and an even better rate of 1%-1.5% below market for those who do not need down payment assistance. For today’s mortgage rate click here
• 0% Down Payment Needed: This program combines standard loan products, such as FHA, Conventional, VA, and others, as a primary loan, with a second loan from the state covering 4% or 5% for the down payment. That means Zero out of pocket for you.
• Household Income Limits: The FirstHome program uses total household income for eligibility. While this can impact qualification, the program maintains liberal income limits for each county. Importantly, these programs use Fannie Mae’s income limits, which are way more inclusive than HUD’s limits.
• Deschutes County Income Limits: For example, in Deschutes County, the FirstHome limit is $125,640 for 1-2 person households, and $146,580 for households of 3 or more people. This means more people can take advantage of the program and afford a home when compared to the Local Housing Agency programs that use HUD limits. For reference the HUD Limits for those other programs are about $76,150 for Deschutes county. As you can see the FirstHome Limits are much more realistic and liberal for the programs I offer.
• High Purchase Price Limits: Unlike other zero-down and DPA programs, the FirstHome program does not impose restrictive purchase price caps, providing greater flexibility and fewer limitations.
• Flexible Property Eligibility: Borrowers can use this program to finance a wide range of property types, including single-unit residences, townhomes, manufactured homes and more. This does not allow for multi unit properties though.

This state-sponsored initiative is designed to make homeownership more achievable for first-time buyers by reducing down payment barriers and offering highly favorable loan terms.

NextStep Program – A Continuation of the Original Oregon Flex Program

The NextStep program retains many of the original features of the Oregon Flex Loan program:

• Eligibility for Low- to Moderate-Income Borrowers: As with the original FLEX program, borrowers must have a qualifying income of less than $125,000 annually. This is based on qualifying income, not household income, meaning that spouses’ income, overtime, and other sources can be excluded to stay within limits.
• 0% Down Payment Needed: This program combines standard loan products, such as FHA, Conventional, VA, and others, as a primary loan, with a second loan from the state covering 4% or 5% for the down payment. That means Zero out of pocket for you.
• Competitive Rates Dictated by the State: The NextStep program continues to offer state-regulated rates, ensuring fair and consistent terms at or around market rates. Click here for today’s rate
• Flexible Property Eligibility: Borrowers can use this program to finance a wide range of property types, including single-unit residences, townhomes, manufactured homes and more, just as before. This does not allow for multi unit properties, however

This program is ideal for those who are not first-time homebuyers but still meet income qualifications, offering similar benefits to the original Flex program.

Why This Matters for Buyers

With these new updates, more Oregon residents can achieve their homeownership dreams, whether purchasing their first or next home. The combination of competitive rates, liberal income limits, flexible purchase price options, and the ability to pair standard loan types with a state-provided 4% or 5% down payment loan makes these programs stand out compared to other zero-down and down payment assistance options.

Contact me today to learn more about how these new programs can help you achieve your homeownership goals. Feel free to email me and I can give you a free consultation on your scenario, there are a lot of different benefits and pricing brackets based on your unique scenario. Let me do the heavy lifting for you and make homeownership happen for you.

Matt Boytz
Direct: 541-359-7212
Office: 541-972-8616
NMLS 1294957
NMLS 2552455
Matt@BendMortgageBrokers.com
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