Pacific NW Federal Credit Union

Grants & Down Payment Assistance

With skyrocketing housing prices, saving up a down payment might seem impossible. Luckily, you don’t have to save as much as you may think. There are many down payment assistance programs available through PNWFCU^®, along with low down payment home loan options.

Why Apply For Down Payment Assistance?

Down payment assistance helps a first-time home buyer cover the down payment required to buy a home. Typically the down payment is a percentage of the home’s purchase price, but some programs may not require a down payment at all. Down payment assistance can be an important resource because the upfront costs associated with buying a home are often the biggest hurdle in home ownership.

Types and Eligibility Of Assistance

There are many sources and forms of down payment assistance. Eligibility is typically limited to first-time home buyers and has income and credit history requirements. Applicants usually needs to complete home buyer or other finance education.

Requirements of a First-Time Home Buyer

Assistance programs vary, but here are some common requirements:

• You haven’t owned residential property of any kind in 3 years.
• You can’t own any form of rental or investment property either, even if you don’t live in the property.
• You typically have to be purchasing a primary residence where you’ll be living the majority of the year.
• You need occupy the home within 60 days.

Get Pre-Approved First

Assistance comes in the form of first-time home buyer grants, loans offered at the state and local levels, savings programs, and funds from the private sector and nonprofits where you live.

Navigating through the assistance options can be overwhelming. Before considering how much money you will need for a down payment and if you’ll be approved for assistance, start the process of getting preapproved for a mortgage. That way, you will know how much you can afford and what your financing options are.  

Some of the Programs Available

• Grants: The most valuable form of down payment assistance is the grant because it doesn’t need to be paid back. Grants are gifts that you might be able to put toward your down payment, closing costs, or home repairs.
• Forgivable Loans: Forgivable mortgage loans are second mortgages that you won’t have to pay back as long as you stay in a home for a set number of years. These loans come with an interest rate of 0%. Often lenders will forgive the loan after 5 years, but they may have a forgiveness period up to 20 years.
• Matched Savings Programs: With this account, a home buyer deposits money into an account with a bank, government agency or community organization. Participants can save over a certain period of time and receive matching funds up to a specified amount for their home purchase.
• Oregon First-Time Home Buyer Savings Account: Want more time to save? You can deduct up to $5,000 per year from your Oregon taxable income for deposits and earnings in this account, or up to $10,000 for couples filing jointly, for up to 10 years. Learn more.
• HomeReady™: Buy your home sooner with a down payment as low as 3% and a $2,500 credit. Learn more. 
• Home$tart Grant: Through the Home$tart program, you might qualify for up to $15,000 in grant funds for the down payment or closing costs on your first home. Learn more.
• MH Advantage: Get the quality home you want at a price you can afford, with down payments as low as 3%. MH Advantage are manufactured homes that are built to meet the higher construction standards that you want for your home, while still being affordable. Learn more.
• Home Rewards Program: Get a 20% cash reward when buying or selling a home. Learn more.
• Free Appraisal: Save money on your home purchase with a free appraisal paid by PNWFCU.

Next Steps

The first steps to find grants or down payment assistance is to get pre-approved. To determine your eligibility, start your pre-approval below.

Speak to a Home Loan Consultant

Still have questions? Contact us and we will give you a call to help you put homeownership within reach!