How to Buy a Home in Keizer & Salem, Oregon With Zero Money Down

How to Buy a Home in Salem & Keizer, Oregon With Zero Money Down

One of the biggest myths I hear from buyers in Keizer and Salem is, “We just don’t have the down payment yet.”
What many people don’t realize is that there are legitimate zero-down and low-down programs available right here in Oregon—and some are especially common in the Salem–Keizer area.

I’m Hannah Fouts-Sparks with Sparks Property Group at SMI Real Estate, and I help families across Keizer and Salem, Oregon buy homes while staying close to the schools, neighborhoods, and community events they love. If buying with little to no money down is something you’ve wondered about, let’s break down what’s actually possible.

Is it really possible to buy a home with zero money down in Oregon?

Yes—for qualified buyers, it absolutely is.

Several loan programs allow buyers to purchase a home with no down payment, and they’re used regularly in Marion and Polk County. The key is understanding which programs fit your situation and which areas qualify.

How do VA loans work for buyers in Salem and Keizer?

VA loans are one of the most powerful zero-down options available.

If you’re an eligible veteran, active-duty service member, or surviving spouse, a VA loan allows you to:

• Buy with 0% down

• Avoid private mortgage insurance (PMI)

• Often secure more flexible credit requirements

VA loans can be used throughout Keizer, Salem, and surrounding communities, including established neighborhoods near McNary High School and North Salem. I’ve helped multiple local buyers use VA benefits to become homeowners sooner than they expected.

What is a USDA loan, and why is it so common around Keizer?

USDA loans are a big deal in our area—and most buyers don’t realize how close the qualifying zones are.

A USDA loan offers:

• Zero money down

• Lower mortgage insurance costs

• Competitive interest rates

Many areas just outside central Salem and Keizer—think parts of Aumsville, Turner, Jefferson, and even pockets near Clear Lake—often qualify as USDA-eligible. That makes this program especially useful for buyers who want a little more space while staying close to town.

Are there Oregon first-time buyer or bond programs that help with down payment?

Yes, and these programs are often misunderstood.

Oregon offers bond and first-time homebuyer programs that can help with:

• Down payment assistance

• Closing costs

• Reduced interest rates for qualified buyers

These programs change slightly year to year, but they’re frequently used by first-time buyers in Salem and Keizer who have stable income but limited savings. Timing and structure matter, which is why having a local lender and agent who understand the details is important.

What are the biggest myths about buying a home with zero down?

I hear these all the time:

• “Zero down loans don’t exist anymore.”

• “You need perfect credit.”

• “The monthly payment will always be higher.”

None of those are automatically true. Every situation is different, but many buyers are surprised to learn they’re closer to buying than they thought—especially when they stop relying on outdated advice.

Why local timing and lifestyle matter when buying in Salem & Keizer

Buying a home isn’t just about the loan—it’s about how your life fits here.

Many of my clients want to be settled before the busy community calendar ramps up with traditions like the Gala of Trees in Salem, seasonal fundraisers, and school events. Others want to enjoy things like Keizer’s best Christmas light displays, annual holiday events in Salem and Keizer, or family outings like where to see Santa in Keizer without feeling stuck in limbo.

Buying sooner—especially with the right financing—can make that possible.

Thinking about buying in Keizer or Salem with little or no money down?

You don’t need to have everything figured out yet. A simple conversation can clarify:

• Which programs you qualify for

• Which areas make the most sense

• What timeline fits your life, not just the market

I’m Hannah Fouts-Sparks with Sparks Property Group at SMI Real Estate, and I help families across Keizer and Salem buy homes that support their lifestyle and keep them connected to the community they love. If you’re thinking about moving, upgrading, or staying local, I’d love to help.

Have a great day!