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Back To The Days of 20% Down Payment? Oregon Suspends CashAdvantage Program

I was on vacation soaking up some sun and warmth in Southern California last week.

Returning home, reaffirmed in our appreciation of the slower pace and more peaceful life we have here in Southern Oregon leaving the Oregon Bond Loan Firing Squad freeway shootings behind, I find one of my favorite loan programs has come under fire.

The Oregon Bond Loan is a wonderful tool for first time home buyers, and the CashAdvantage program has been the hand up many first time home buyers in Oregon have needed to fulfill their dream of homeownership. This program provided a 3% credit toward the buyers' down payment and/or closing costs, helping to overcome a hurdle many first time home buyers face, which is the lack of a substantial down payment. In the current market environment, buyers of the bonds sold to fund this program have disappeared, so the program has been suspended.

In almost 25 years in this business, not a single one of the first time home buyers I have worked with has defaulted on their loan! Most are extraordinarily grateful to have been given the help to give their family the stability of homeownership, while starting on the road to building long-term equity wealth.

Why is this being taken away from them?

See you at the closing table, albeit it with one less tool in my chest...

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

Posted by Karen Cooper - Mortgage Consultant for OR/CA on 04/01/2008 10:24 PM

Comments (8)

oregon bond loan, rate advantage, cash advantage, first time home buyer, city of medford, down payment assistance

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8 Comments on Back To The Days of 20% Down Payment? Oregon Suspends CashAdvantage Program

APR

2008

Unfortunately too many abused the system. Though I think there will be some new programs to come. It just seems to impossible for some sort of 100% program to completely not exist!

APR

2008

Ryan - When all the big changes started in August 2007, I realized I have been operating in a bubble environment. I had heard references to abuses others were committing, but it made no sense. Still doesn't. Guess with human nature we'll always face that element of corruption. Glad I can always sleep well at night and not have my conscience bother me. Thanks for commenting.

I think that if this had been an isolated incident, it would be a non-issue. It is only in conjunction with the all of the other issues that all programs are tightening. Thanks for the post. And...welcome home!

Hi Sarah -Thanks...it's good to be back. The State's March 26th notice specifically stated the reason for suspending was because they can't sell their bonds in order to fund the program. No more money!

APR

2008

I wish this was an april fools joke. Another bunch of buyers out of the market

APR

2008

Krista - no joke, unfortunately. Even the good programs designed to build sustainable homeownership are falling prey to the market conditions. I do see the light at the end of the tunnel, though, with focus moving out to long term versus the "fire drill" decisions we've been seeing.

APR

2008

Things will turn around. They have to get real bad before they can get better. Good luck!

APR

2008

Jose - There are definitely positive signs showing through. Thanks for stopping by.

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