Prepare (do this now)
Four things you can start today: 1) Complete an income-eligibility estimate to confirm your household is within the limit for your size. 2) Get on the interested-parties list. 3) If you’ll need a loan, take a free hoMEworks first-time-homebuyer class (good for two years). 4) Get mortgage-ready — steady income, a credit score over 660, and a debt-to-income ratio under 40%. How to get mortgage-ready →
The application window
When reservations open, MCDP announces it to everyone on the interested list and posts a live application link (they don’t accept PDFs or early submissions). The window runs for a few days or until it hits the application cap, whichever comes first. You’ll submit a pre-qualification letter, an income-eligibility form, and the application.
How priority works
MCDP reviews for eligibility, then prioritizes households who can answer yes to four preferences: first-time homebuyer (haven’t owned in 3 years), first-generation homebuyer, a Portland connection (live/lived here or work here 3+ days a week), and being an early interested-list signup. If more qualified households match all four than there are homes, it goes to a lottery; otherwise they work down from 4 preferences to 3, 2, and 1.
Purchase & sale → income verification
The top-ranked households get a draft purchase & sale agreement, sign within 3 business days, and place a $2,500 deposit (held in escrow). You then show a loan application, a lender commitment letter, and income paperwork (two recent pay stubs + the City’s verification form) for the City of Portland to verify. Your deposit is refundable if you can’t get financing within 20 days, are deemed ineligible, or if defects found at walkthrough aren’t fixed.
Closing & move-in
Near completion the bank orders an appraisal, the building gets its certificate of occupancy, and you do a final walkthrough. At closing you meet the developer and your bank/title company, pay your down payment and closing costs, sign, and get your keys. One critical rule: make no major financial changes between approval and closing — no new job, car, debt, or income change can jeopardize the loan.