Saving up for a down payment in Orenco Station can feel like a moving target, especially with closing costs and mortgage insurance added on. You are not alone if the upfront cash is the biggest hurdle between you and a Hillsboro home. The good news is that Oregon Housing and Community Services (OHCS) offers Flex Lending that can help cover your cash to close and improve your buying power. Here is how it works for Orenco and how to get started with confidence. Let’s dive in.
Flex Lending at a glance
OHCS Flex Lending is a pair of mortgage options delivered through approved lenders. Each combines a fixed-rate first mortgage with down payment assistance (DPA) as a second mortgage. DPA can be applied to your down payment, closing costs, prepaid items, and upfront mortgage insurance.
According to the state program overview, Flex Lending can cover up to 100% of your cash needed at closing through its DPA structure. Learn more on the OHCS Flex Lending page.
FirstHome vs. NextStep
FirstHome: for first-time buyers
- Designed for first-time buyers, with some exceptions for veterans and certain targeted areas.
- Offers a below-market first mortgage plus DPA equal to 4% of the first mortgage loan amount, or 5% for focused demographics.
- Uses county income and purchase price limits. Homebuyer education is required for first-time buyers.
- See the full rules in the FirstHome Product Manual.
NextStep: for repeat or first-time buyers
- Open to eligible buyers without a first-time requirement.
- Uses a qualifying income cap of up to $125,000, with county area median income tiering.
- Also offers 4% DPA, or 5% for focused demographics, with similar property and underwriting rules.
- Review details in the NextStep Product Guideline Manual.
Who qualifies in Washington County
- Income and price limits apply. FirstHome uses county income and purchase price limits. NextStep has a $125,000 qualifying income cap and county AMI tiering. Limits change periodically, so confirm current numbers with an OHCS-approved lender.
- Credit and underwriting follow standard loan rules. Many Flex options accept credit scores starting around 620, depending on loan type and lender. Debt-to-income limits, loan-to-value, and other criteria follow the selected first mortgage type.
- Eligible properties typically include single-unit site-built homes, condos, townhomes, many PUDs, and qualifying manufactured homes on land. Investment and second homes are not eligible.
- DPA cannot be used to cover any gap if the appraisal comes in below the purchase price. This is important when writing offers in competitive markets. You can find lender participation details on the OHCS lender resources page and program rules in the manuals.
Why it helps Orenco buyers
Orenco Station is a transit-oriented neighborhood centered on the TriMet MAX line, with a mix of condos, townhomes, single-family homes, parks, and a town center near major employers. The location and variety of housing types make it a popular spot for buyers who value shorter commutes and easy transit access. See the neighborhood overview from the City of Hillsboro.
In this setting, Flex Lending can make a meaningful difference:
- Low cash to close. DPA can cover up to 100% of your cash requirement, which can remove the biggest barrier to ownership.
- Added purchasing power. The FirstHome below-market rate, paired with DPA, can improve monthly affordability and help you compete.
- Flexibility across property types. Many condos and townhomes in Orenco are eligible under program rules, which can expand your options close to transit and employment.
How to start in Hillsboro
- Confirm your path. If you are a first-time buyer under Washington County limits, explore FirstHome. If your qualifying income is up to $125,000, consider NextStep. Double-check current limits with an approved lender using the FirstHome manual and NextStep manual.
- Choose an OHCS-approved lender. Flex loans are originated by participating lenders who reserve program funds and lock rates. Start with OHCS’s lender resources page.
- Complete homebuyer education. First-time buyers must take an approved class. Keep your certificate handy for your lender’s file.
- Gather documents. Expect pay stubs, W-2s or tax returns, bank statements, photo ID, and proof of residency intent. First-time status is typically verified through tax returns.
- Plan your offer strategy. Since DPA cannot bridge an appraisal shortfall, craft offers that minimize appraisal risk or keep protective contingencies.
What to watch
Program rules and income or purchase price limits change. Before you lock a loan or write an offer, verify the latest details with your lender and reference the official OHCS Flex Lending page. If you receive forgivable assistance, the FirstHome manual also references potential IRS recapture rules, so consider speaking with a tax professional. You can review how DPA works on the state’s down payment assistance overview.
Ready to weigh your options in Orenco Station and across Hillsboro? Partner with a local team that understands offers, appraisals, and timing in Washington County. Reach out to Currin Collective to plan your search and navigate your next move.
FAQs
What is OHCS Flex Lending in Oregon?
- It is a state-backed first mortgage paired with down payment assistance that can cover up to 100% of your cash to close, delivered through OHCS-approved lenders.
How much down payment assistance can I get?
- Most buyers see DPA equal to 4% of the first mortgage loan amount, or 5% for focused demographics, subject to eligibility and program rules.
Who qualifies for NextStep in Hillsboro?
- NextStep is open to eligible buyers with qualifying income up to $125,000 and uses county AMI tiering, without a first-time buyer requirement.
Are Orenco Station condos and townhomes eligible?
- Many single-unit homes, condos, townhomes, and qualifying manufactured homes on land are eligible; investment and second homes are not.
Can DPA cover an appraisal gap in a competitive offer?
- No, Flex Lending DPA cannot be used to make up the difference if the appraised value is lower than the purchase price.
Do I need a homebuyer education class?
- First-time buyers using FirstHome must complete an approved education course, and first-time buyers using NextStep must complete education as well.
