Buying your first home in Oregon doesn't have to mean scraping together a massive down payment. Several state and local programs exist specifically to help first-time buyers get into a home. Here's what's available as of 2026.
Oregon Bond Residential Loan Program
Offered through Oregon Housing and Community Services (OHCS), this program provides below-market interest rates for first-time buyers. Income limits and purchase price caps apply, but for Lebanon's price range, most buyers will qualify. The program can be combined with down payment assistance.
Down Payment Assistance
OHCS also offers the Oregon Down Payment Assistance program, which provides up to $15,000 toward your down payment. This is structured as a second mortgage with favorable terms. Combined with a competitive first mortgage rate, this can dramatically reduce what you need to bring to closing.
USDA Rural Development Loans
Lebanon qualifies for USDA Rural Development loans, which offer zero down payment financing for eligible buyers. Income limits apply, but for a family of four, the limit is generous enough to cover most first-time buyers in the area. This is one of Lebanon's hidden advantages over larger cities like Corvallis or Albany, which don't qualify.
VA Loans
For veterans and active military, VA loans offer zero down payment with no private mortgage insurance. Combined with Lebanon's lower price point, this makes homeownership very accessible for military families.
What This Means in Real Numbers
On a $377,000 home (Lebanon's current average), a conventional loan with 5% down means $18,850 out of pocket. With Oregon's down payment assistance, that drops to roughly $3,850. A USDA loan brings it to zero down. The monthly payment difference between a 5% down conventional and a USDA loan on this price point is roughly $150/month in PMI savings.
Ready to explore your options? Team Gillott works with lenders who specialize in these programs and can walk you through the process.