Our Oregon State Veterans' Home Loan Program has been affected by the recent changes the mortgage insurance companies have made, the same as the recent changes made to the Oregon Bond Loan.

Unlike the Federal VA home loan program, the Oregon program is underwritten to Fannie Mae guidelines, and loans greater than 80% loan-to-value will require mortgage insurance. Here are the highlights of these changes from the memo I received from the State:

Please take note of the ORVET - ODVA loan program changes cited below.

1.  Effective immediately, April 21, 2008, ODVA is no longer able to obtain mortgage insurance on 100% loans. 

This means that in most of Oregon our maximum loan-to-value ratio for site-built, single-family, detached housing is 97%, the exception being Clackamas, Columbia, Multnomah, Washington and Yamhill counties, where the ceiling is 95% at best.  These counties are subject to this further limitation because we do not have a mortgage insurance vendor willing to insure loans in that marketplace in excess of 95%.  Across the rest of the state, insurance coverage for a 97% loan is obtainable only on loans to borrowers with excellent credit and accompanied by a DU Finding of Approve/Eligible.

2.  Condominium loans in excess of 90% will be significantly more difficult to insure, and even in the most optimum cases the maximum loan-to-value ratio will be 95% except in the counties cited above, where the ceiling is 90%. 

3.   Effective immediately, April 21, 2008, ODVA is no longer able to obtain mortgage insurance for manufactured-home-on-land loans that exceed a 90% loan-to-value ratio.  Therefore, our maximum loan secured by such properties is now 90%, at best.

An AUS Finding, appraiser's notation, or MI vendor's determination citing that the property is in a declining market will require a 5% further reduction in the maximum loan-to-value ratio.

It appears that for the immediately foreseeable future a veteran's best opportunity for a 100% loan lies with the Federal VA loan program.  (If you are working with a veteran pursuing a Federal VA loan, don't forget to inquire whether they have a 10% or greater service-connected disability rating that will allow the Funding Fee to be waived.)

We regret these limitations, but they are imposed on us by external influences beyond our control. 

This is still a great program for Oregon Veterans meeting the guidelines. For more information, contact Quality Home Loans.

See you at the closing table!