Get Closer to Owning a Home in Portland with DPAL

The Down Payment Assistance Loan (DPAL) is a vital program tailored to assist first-time homebuyers in realizing their dream of owning a home within Portland’s city limits. Accessible Support DPAL offers a valuable lifeline to prospective homeowners, providing a second mortgage loan funded by the Portland Housing Bureau (PHB). This loan is specifically designed to complement a primary mortgage from a participating lender, making homeownership more attainable. DPAL awards can range from $80,000 to $100,000, depending on the funding source and the location of the desired property.

Additionally, a minimum of 10% of the DPAL award is earmarked as a grant, specifically designated for post-purchase home improvements. This grant component offers homeowners the opportunity to enhance their properties, adding even more value to their investments. The assistance comes with a generous 30-year loan term and boasts a zero-interest rate, translating to an incredibly low Annual Percentage Rate (APR) of just 0.012%.

Eligibility Criteria To qualify for DPAL, applicants must meet specific criteria designed to ensure the program serves those who truly need it. To start, all applicants must work closely with a Homebuying Counselor at one of the designated Community Partners. These counselors play a pivotal role in assessing the readiness of applicants for mortgage commitments.

In addition to this, applicants must meet the definition of first-time homebuyers, which means they haven’t owned a home in the past three years. Financial eligibility is also a crucial factor. Household income must not exceed 100% of Portland’s current Area Median Income (AMI), adjusted based on family size. However, income limits may vary depending on the funding source and the bedroom size of the intended property.

In some instances, the maximum annual household income limit may be set at or below 80% AMI. Your Homebuying Counselor will guide the income limit applicable to your DPAL award. Lastly, applicants are required to maintain liquid assets not exceeding $10,000 (inclusive of cash, bank checking and savings accounts, CDs, and equivalents) at the time of closing. Furthermore, a minimum borrower investment of no less than $500 is mandatory, with the option to use gift funds to meet this requirement. These eligibility requirements ensure that DPAL effectively reaches those in need while promoting responsible financial practices.