Oregon's State Housing Finance Agency (HFA) may be an excellent source of financing to first time home buyers. Providers of the "Oregon Bond Home Loan" and the "Purchase Assistance Loan" (PAL) programs, the HFA says that this little known resource might just be the solution for home buyers seeking financing in an ever-tightening lending market.
Tapping into a large source of below-market rate lending capital (225 million in 2005,) the Oregon Bond claims to "never run out of money" and has had an ongoing source of funding for over 10 years. 99.5% of 2004 Oregon Bond borrowers served were first time home buyers with 80% having household incomes at or below 80% of the state or area median income.
Oregon Bond - Main Benefits
Ø Provides a great 30 year Fixed Rate
Ø 3% Cash Assistance provided by the CashAdvantage Home Loan
Ø NOT just for low-income households - Income limits up to $58,600 statewide (higher in some areas.)
Ø Purchase price limits are now over $200,000
Ø No fee 90 day Rate-Locks for existing homes and 120 day Rate-locks for newly constructed homes!
Two Oregon Bond Loan Choices are provided:
CashAdvantage
Ø Includes 3% Cash Assistance to pay closing costs
Ø O.5% higher than the RateAdvantage option
Ø 30 year fixed rate
Ø No Secondary Liens
Ø Cash assistance is like a Grant
Ø No Pre-payment penalty
Ø Less Cash Needed to close
RateAdvantage
Ø Provides a below market rate
Ø 30 year fixed rate
Ø Compatible with gifts, grants and DAPs
Ø Assumable
Ø Maximum purchasing power
Ø No Prepayment penalty
Oregon Bond-Borrower Qualifications
Ø First-time Home buyers: May not have owned a home in the last three years (unless purchasing in a targeted area.)
Ø Household income limit (100% of State median - $58,600)
Ø Must Occupy new home as a "primary residence."
Ø Must meet applicable mortgage insurance requirements or other lender requirements.
Ø Bankruptcies must have been discharged at least two years prior to closing the program loan.
Ø Foreclosure or "deed-in-lieu of forclosure must be at least five years prior to loan closing the program loan.
New homebuyers might also be able to get help with down payments and closing costs through the Purchase Assistance Loan PAL! Low income or first time homebuyers can get up to a $10,000 loan at 0% interest with no payments due until payoff or transfer of title. This option must be paired with the Oregon Bond's RateAdvantage Home Loan option.
With money seeming to be tightening, especially in the so-called sub-prime market, first time home buyers should take a serious look at the many resources currently being provided by Oregon's State Housing Finance Agency (HFA) and the Oregon Bond.
An excellent source for more information regarding the Oregon Bond can be found at http://www.ohcs.oregon.gov/ and lenders familiar with the program.
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