Can You Buy a Home in Portland With Zero Down? Local Loan Options Explained
Can you buy a home in Portland with zero down?
Yes, it’s possible to buy a home in Portland with zero down through certain loan programs like USDA and VA loans, as well as first-time buyer assistance programs. These options depend on your eligibility, income, and the type of property you’re considering.
If you’re hoping to buy a home in Portland but don’t have a large down payment saved, you’re not alone. Portland buyers often assume they need at least 20% down, but that’s not always true. With the right loan program or local assistance, you may be able to purchase a home with little—or even no—money down. In this guide, the Bridge to Portland Group breaks down your options, the pros and cons, and what to know before you start your search.
Why Down Payments Matter
A down payment is the amount of money you put toward the purchase of a home upfront. Traditionally, many people think of 20% as the standard, but most Portland buyers put far less down. National Association of Realtors data shows that the median down payment for first-time buyers is closer to 6%. Still, zero-down options can be a game-changer if you qualify.
Loan Programs That Offer Zero Down
Here are some of the most common zero-down loan programs available to Portland buyers:
VA Loans: For eligible veterans, active-duty service members, and some surviving spouses. No down payment required, competitive interest rates, and no private mortgage insurance (PMI).
USDA Loans: For properties in designated rural areas around Portland, such as parts of Clackamas County or Washington County. Income limits apply, but this can be a great fit for buyers open to homes outside the urban core.
Down Payment Assistance Programs: Oregon Housing and Community Services (OHCS) and the Portland Housing Bureau offer grants or forgivable loans that cover part—or all—of your down payment if you meet income and residency requirements.
Low Down Payment Alternatives
Even if you don’t qualify for zero down, several loan types allow you to buy a home in Portland with as little as 3% down:
FHA Loans: Require just 3.5% down and are widely used by first-time buyers.
Conventional Loans: Some conventional loan products start at 3% down with reduced PMI requirements.
Oregon Bond Residential Loan Program: Provides affordable 30-year fixed-rate mortgages and down payment assistance for qualifying buyers.
What to Know About the Portland Market
The Portland housing market has remained competitive, even as interest rates have fluctuated. According to the Regional Multiple Listing Service (RMLS), the median home price in Portland in mid-2025 is around $540,000. Neighborhoods like Lents, St. Johns, and outer East Portland still offer more affordable options compared to inner NE or SE. When you’re using a zero-down or low-down loan, these neighborhoods may give you more buying power.
Pros and Cons of Buying with Zero Down
Pros
Keeps more of your savings intact for moving costs, repairs, or emergencies.
Allows you to buy sooner rather than waiting years to save a down payment.
Some programs offer reduced interest rates or no PMI, saving you money in the long-term as well.
Cons
Higher monthly payments compared to buyers who put money down.
Some programs limit where or what type of property you can buy.
You may have to meet stricter credit or income requirements to qualify.
How the Bridge to Portland Group Can Help
Every buyer’s situation is unique. The Bridge to Portland Group works closely with trusted local lenders to connect you with the right program for your goals. Whether you’re buying your first condo in Sellwood, upgrading to a family home in Laurelhurst, or exploring acreage outside the city, our team helps you understand your financing options before you start touring homes.
Next Steps if You’re Considering Buying With Zero Down
Talk to a local lender about your eligibility for VA, USDA, FHA, or state assistance programs.
Get pre-approved so you know your budget and how competitive your offer will be in the Portland market.
Work with an experienced Portland real estate team—like the Bridge to Portland Group—that understands how to structure offers with these loan types.
Final Thoughts
Yes, you can buy a home in Portland with zero down depending on your qualifications and the loan program you choose. The process can feel overwhelming, but you don’t have to navigate it alone. Reach out to the Bridge to Portland Group today to talk through your options and start planning your path to homeownership in Portland.
