Oregon Bond Program Basics
Oregon Housing and Community Services (OHCS) offers the Oregon Bond Residential Loan through approved lenders. It provides below-market interest rates and can be combined with down payment assistance. Income limits apply based on county and household size — for Lane County in 2026, the limit is approximately $110,000 for a household of two.
FHA Loan Basics
FHA loans are insured by the Federal Housing Administration and available through most lenders. The minimum down payment is 3.5% with a credit score of 580 or higher. There are no income limits, but the property must meet FHA appraisal standards, which can be stricter than conventional appraisals.
Down Payment Comparison
Oregon Bond can be paired with the Cash Advantage program, offering 3% of the purchase price as a forgivable grant after five years. This means you could potentially close with almost nothing out of pocket. FHA requires a flat 3.5% down payment with no state-level grant program attached.
Mortgage Insurance
FHA carries both an upfront mortgage insurance premium (1.75% of the loan) and a monthly MIP that lasts the life of the loan for most borrowers. Oregon Bond loans structured as conventional mortgages carry PMI that drops off at 80% loan-to-value, saving you money long term.
Which Should You Choose?
If you meet the income limits and plan to stay in the home for at least five years, Oregon Bond with Cash Advantage is almost always the better deal. If your income is above the limit or you need a faster, more flexible close, FHA is the reliable fallback. I walk every first-time buyer through both options before we start shopping.
