Home Ownership Assistance Program
OHCS offers specialized programs to help veterans become homeowners. Through the Home Ownership Assistance Program (HOAP), veterans can access down payment assistance (DPA) to make purchasing a home more affordable. Eligible veterans and their families at or below 100% of the area median income can qualify for up to $60,000, depending on specific program guidelines. In addition, an amount up to 10% of the down payment assistance can be used for lender-required repairs, allowing the veteran household to retain their funds for future needs.
Additionally, the Restore Health and Safety (RHS) program has a set-aside for veterans and provides financial assistance to homeowners to repair and modify their homes for better health and safety. The program includes repairs that affect the house structure and/or repairs that are not limited to:
- Accessibility/adaptability modifications
- Updates to code compliance
- Emergency repairs
- Repairs for structural integrity
HOAP resources have been expanded to include serving the spouse of a deceased veteran, and both DPA and RHS funds can be accessed through different organizations across the state. Each organization has specific program guidelines, so it is best to contact them directly for qualifications and eligibility criteria.
Flex Lending
OHCS has developed two distinct loan products designed to assist veterans in achieving the dream of homeownership. In November 2024, OHCS Homeownership Lending introduced the FirstHome loan product, an enhanced version of the Oregon Bond Residential Loan. FirstHome is an IRS-based product that offers a lower interest rate to help with qualifying and to maximize buying power.
FirstHome for first-time homebuyers
FirstHome is designed to assist first-time homebuyers, but veterans are granted an exception if they have not previously utilized an IRS-based first-time homebuyer loan product to purchase a home. Borrowers can utilize their federal VA loan eligibility with 0% down payment that may be combined with optional down payment assistance of 4%-5%, which can be used to assist with closing costs. Maximum household income limits do apply and are based on the area median family income per county, as determined by HUD.
NextStep options for veterans
OHCS also offers the NextStep loan product, another excellent option for veterans. With this product borrowers can utilize their federal VA loan eligibility with 0% down payment that is combined with down payment assistance of 4%-5%, which can be used to assist with closing costs. Unlike FirstHome, the NextStep loan product does not require the purchaser to be a first-time homebuyer and has a maximum income limit of $125,000.
Additional loan options
Depending on a veteran’s needs, they are not limited to a VA loan. They may use FHA, USDA, or Conventional loan products through Fannie Mae or Freddie Mac. Veterans are encouraged to apply with an approved lender. These products are tailored to meet the needs of veterans, offering flexible and affordable pathways to homeownership.
For more information about the program or to find an approved lender, visit the OHCS' Flex Lending webpage.
ODVA Veteran Home Loan Oregon is one of only five states that offers a veterans home loan program. This Oregon benefit is separate and distinct from the federal VA Home Loan Guaranty. The program has lent about $8 billion in low-interest home loans to more than 334,000 veterans since 1945.
The Oregon Department of Veterans Affairs (ODVA) home loan program offers eligible veterans fixed-rate financing for:
- Owner-occupied, single-family residence
- Up to the Fannie Mae limit - purchase only (no refinancing is available) - up to four home loan maximum life benefit.
Apply for a home loan with the ODVA.
Home loan interest rate reduction
If you have an existing VA home loan, you can apply for an Interest Rate Reduction Refinance Loan (IRRRL) to save money with a better interest rate.