Down Payment Assistance in Clackamas County: Local Programs and Income Limits

Why Down Payment Assistance Matters in Clackamas County

Down payment assistance Clackamas County programs exist because home prices here tend to run higher than in most of Oregon. As part of the Portland-Vancouver-Hillsboro MSA, Clackamas County benefits from metro-level HUD income limits, which are more generous than rural Oregon. That means more households qualify than many people realize.

Whether you are looking at a starter home in Oregon City, a townhome in Milwaukie, or a new-construction property in Happy Valley, the right down payment assistance Clackamas County program can reduce the cash you need at closing by tens of thousands of dollars. I have helped buyers across this county access these programs for more than twenty years, and the process is more straightforward than most people expect.

Clackamas County-Administered Down Payment Assistance Programs

Clackamas County Community Development manages several homebuyer programs funded through federal and local dollars. These are specific to Clackamas County and are not available to buyers in Multnomah or Washington Counties.

Clackamas Homebuyer Assistance Program (CHAP)

The Clackamas Homebuyer Assistance Program provides down payment assistance Clackamas County buyers through deferred loans. Key details include:

• Funded through Community Development Block Grant (CDBG) and HOME Investment Partnerships dollars
• Available to low-to-moderate-income first-time buyers purchasing within Clackamas County
• Zero-percent interest, deferred payment structure for the term of the loan
• Contact: Clackamas County Community Development at 503-742-4322

CDBG-DR Down Payment Assistance

Clackamas County also administers CDBG Disaster Recovery (CDBG-DR) funds for down payment assistance. These funds carry zero-percent interest with deferred payments. CDBG-DR funding is targeted toward properties identified for affordable homeownership in the county.

NCRA Housing Rehabilitation and Homebuyer Assistance

The NCRA program provides loans and grants to first-time homebuyers in Clackamas County. Lower-income households receive more favorable interest rates and deferred loan options. For information on the NCRA program, contact David Queener at 503-742-4322 or davidque@clackamas.us.

Down Payment Assistance Clackamas County: OHCS State Programs

Oregon Housing and Community Services (OHCS) runs statewide programs that Clackamas County buyers can access through approved lenders like Fairway Independent Mortgage. These are among the most popular down payment assistance Clackamas County options.

OHCS Down Payment Assistance Program

The OHCS DPA program offers eligible first-time and first-generation homebuyers up to $60,000 or 20 percent of the purchase price, whichever is less. Twenty-five percent of funds are reserved for Oregon veterans. This assistance comes as a grant or forgivable second mortgage.

Oregon Bond Residential Loan Program: Cash Advantage and Rate Advantage

The Oregon Bond program offers two paths for down payment assistance Clackamas County buyers should know about:

• Cash Advantage: Competitive interest rates plus up to 3 percent of the loan amount for closing costs
• Rate Advantage: A below-market interest rate that lowers your monthly payment, helping you qualify for a better home

Both options pair with FHA, VA, USDA, or conventional first mortgages. Tu is an approved OHCS lender and can originate these loans directly from the Clackamas office.

FirstHome vs. NextStep

OHCS splits its mortgage products into two tracks:

• FirstHome: For first-time buyers. Subject to income limits and purchase price limits by county.
• NextStep: Open to all buyers earning $125,000 or less per year, with no purchase price limit. Eligible borrowers receive 4 or 5 percent of the first mortgage for down payment and closing costs.

HUD AMI and Income Limits for Down Payment Assistance Clackamas County

Clackamas County falls within the Portland-Vancouver-Hillsboro MSA, which means HUD income limits here are higher than in rural Oregon counties. The 2025 HUD median family income for a four-person household in this MSA is $124,100.

Most down payment assistance Clackamas County programs use 80 percent or 100 percent of area median income (AMI) as their qualification threshold. Here is how those limits break down by household size:

Source: HUD FY2025 income limits for the Portland-Vancouver-Hillsboro MSA. 2026 limits are expected in May 2026 and will likely increase. Confirm current limits with your lender.

Because Clackamas County shares the same MSA as Portland and Beaverton, these income ceilings are significantly higher than what you would see in Bend, Eugene, or Southern Oregon. A dual-income household in Lake Oswego or West Linn earning close to $100,000 may still qualify for several down payment assistance Clackamas County programs.

Purchase Price Limits for Down Payment Assistance Clackamas County Programs

OHCS purchase price limits for the Portland MSA, including all of Clackamas County, generally fall between $400,000 and $550,000 depending on the specific program. These limits are updated annually. For the NextStep program, there is no purchase price limit, which makes it a strong option for buyers in higher-priced markets like Lake Oswego or West Linn.

County-administered CDBG and HOME-funded programs typically follow HUD's after-rehabilitation value limits, which also tend to be more generous in the Portland MSA than in rural areas. I always verify the current purchase price cap before submitting a loan because these numbers shift each year.

Portland Metro Programs Available to Down Payment Assistance Clackamas County Buyers

Portland Housing Center MAP 80

The Portland Housing Center operates the Mortgage Assistance Program MAP 80, which serves Multnomah, Washington, Clackamas, Yamhill, and Columbia Counties. Eligible borrowers can receive a low fixed-interest-rate loan of up to $80,000 for down payment and closing costs. This is a 30-year second mortgage at 0 percent interest with no monthly payments. Fifty percent of the balance is forgiven at year 15, with full forgiveness at year 30.

To qualify, you need a minimum $500 down payment, household income at or below 80 percent AMI, and you must work with a HUD-approved homebuying counselor through one of the program's community partners.

Proud Ground Community Land Trust

Proud Ground provides down payment assistance Clackamas County residents can use when purchasing through their Community Land Trust model. Grants of up to $200,000 (final amount based on need) are available to income-qualified first-time buyers. You need a credit score of 620 or higher. The process starts with an intake form and information session, followed by a one-on-one meeting with a HUD-certified counselor.

Proud Ground works directly with several Clackamas County cities and is a strong option for buyers who want to stay in the county long term.

City-Specific Homebuyer Programs in Clackamas County

While most down payment assistance Clackamas County programs operate at the county or state level, a few cities within the county have their own incentives or partnerships worth knowing about.

Oregon City

As the county seat, Oregon City benefits directly from Clackamas County CDBG and HOME funds. Properties in Oregon City's downtown and historic districts may be eligible for additional rehabilitation assistance that can be paired with down payment programs. Oregon City's median home prices tend to run below the county average, which means purchase price limits are less likely to be a barrier.

Happy Valley

Happy Valley is one of the fastest-growing cities in the county, with significant new construction. While the city does not administer its own DPA program, buyers here can access all county-level and OHCS programs. New-construction homes in Happy Valley may qualify for the NextStep program, which has no purchase price cap.

Lake Oswego and West Linn

Home prices in Lake Oswego and West Linn are among the highest in Clackamas County. The NextStep program's lack of a purchase price limit is particularly relevant here. Proud Ground's Community Land Trust model can also help bridge the affordability gap in these higher-cost markets.

Milwaukie

Milwaukie offers some of the most accessible price points in the county, especially near the Orange Line MAX station. Buyers in Milwaukie are well-positioned to take advantage of OHCS FirstHome limits, and the Portland Housing Center's MAP 80 program covers Milwaukie as part of Clackamas County.

Down Payment Assistance Clackamas County: Program Comparison

How Tu Phan Navigates Down Payment Assistance Clackamas County Programs for Clients

With more than twenty years of mortgage lending experience based right here in Clackamas, I have seen these programs evolve through multiple funding cycles. Here is how I approach DPA for my clients.

First, I run an income and household-size analysis against every active program to identify which ones you qualify for. Some buyers qualify for multiple programs, and stacking is sometimes possible. Second, I check purchase price limits against the neighborhoods you are targeting. A buyer looking in Oregon City may have more options than someone focused on Lake Oswego, simply because of price ceilings.

Third, I coordinate timing. Several of these programs operate on funding cycles, which means money can run out mid-year. I keep track of which programs have available funds and which are closed or waitlisted. That awareness comes from working in this county day after day, year after year.

Finally, I handle the lender-side paperwork. Programs like OHCS Cash Advantage and NextStep require origination through an approved lender. Fairway Independent Mortgage is an approved OHCS lender, which means I can originate these loans directly from the office at 12891 SE 97th Ave in Clackamas.

Steps to Apply for Down Payment Assistance in Clackamas County

The application process varies by program, but most down payment assistance Clackamas County programs follow a similar path:

1. Complete a homebuyer education course. Most programs require an 8-hour HUD-approved course. The Portland Housing Center and Proud Ground both offer qualifying classes.
2. Get pre-approved for a first mortgage. I can run your pre-approval and DPA eligibility check at the same time, so you know your full buying power in a single conversation.
3. Submit your DPA application. For county programs, this goes through Clackamas County Community Development. For OHCS programs, the application is handled through your approved lender.
4. Find a home within program guidelines. Purchase price limits and property condition requirements apply. Some programs require a home inspection.
5. Close on your home. The DPA funds are disbursed at closing, and the second lien or grant is recorded alongside your first mortgage.

Common Misconceptions About Down Payment Assistance Clackamas County Programs

Many buyers assume they earn too much to qualify. But because Clackamas County is in the Portland MSA, income limits are higher than you might expect. A family of four earning up to $99,250 still qualifies as low-income under HUD guidelines here. That surprises a lot of people.

Another misconception is that down payment assistance Clackamas County programs are only for buyers with poor credit. Most programs require a credit score of 620 or higher, which is the same threshold many conventional loan programs use. These programs are designed for creditworthy buyers who simply need help with upfront cash.

Some buyers also worry that DPA programs slow down the closing process. In my experience, the timeline is usually comparable to a standard purchase when you work with a lender who handles these loans regularly. I close DPA-assisted loans throughout the year and have built the process into our standard workflow.

FAQs: Down Payment Assistance Clackamas County