Real Estate Blog - Oregon Bond Loans Temporarily on Hold in 2009 Until Further Funding Is Acquired

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Oregon Bond Loans Temporarily on Hold in 2009 Until Further Funding Is Acquired

We've been receiving warnings that the Oregon Bond Loan funds were running out, with insufficient interest by investors to purchase the bonds that fund this program. The time has come - funds are gone! Until more bonds have been sold to re-fund the Oregon Bond Loan, first time home buyers in Oregon will not have this tool available to them. This only effects those buyers who have not already reserved their Oregon Bond Loan funds.

In the meantime, there are still some great "market rate" programs available, like the USDA Guaranteed Rural Housing program for buyers with no down payment looking to purchase homes in eligible areas, and the FHA loan that requires a 3.5% down payment which may be a gift from a family member. Interest rates have once again reached historic low levels helping buyers increase their buying power.

And don't forget the $8000 tax credit eligible first time home buyers may use for homes they close escrow on by December 1, 2009! Call for your free consultation to find out what your homoe buying options are, and put my 25 years of experience to work for you.

Oregon Bond Loan,first time home buyers,usda,fha,Karen Cooper,Quality4Loans,Ashland/Medford Oregon

See you at the closing table!

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

Karen Cooper - OR|CA Mortgage Consultant - www.Quality4Loans.com
Providing high Quality, Professional, Ethical service to Oregon and California home buyers and owners since 1983. Whether you are taking out your first home loan or your fiftieth, for your home, your second home or for investment, put my knowledge and expertise to work for you.

Posted by Karen Cooper-Mtg Banker|Broker Ashland|Medford on 03/18/2009 01:08 PM

Comments (10)

oregon bond loan, usda guaranteed rural housing, fha, first time homebuyer, ashland, medford, 8000 tax credit, karen cooper, quality4loans, talent

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10 Comments on Oregon Bond Loans Temporarily on Hold in 2009 Until Further Funding Is Acquired

MAR

It's good to know that this is not an option for funding at this time. Thank you for sharing.

Hi Holly - As seems to happen these day, there is a lot of give and take! The "give" for the state of Oregon is they will probably have the Purchase Assistance Loan and Down Payment Assistance Programs back up and running again by May.

MAY

While the Oregon Bond Loan program certainly has the best intentions, there are a couple of limitations I feel people should be aware of before enrolling in the program. I unfortunately found these out the hard way after using the OBL downpayment assistance program to purchase my property in 2007.

1) First off, and Oregon Bond Loan is NOT backed by Freddie or Fannie. That doesn't seem like a big deal until you discover that you do not qualify for any kind of government assistance (including the new mortgage/refinance relief plans implimented by the government in 2009). Long story short, if you have an OB backed mortgage you can forget about any kind of help from the government. I've even been told by my loan servicer that they have less options available to help lower payments because I have an OB loan...I basically have to already be past default.

You'd think that those who needed assistance coming up with a down payment would be the most "in need" of help after the market tumbled.

2) If all else fails and you just can't afford your payments and you can't get mortgage assistance....well, you can't even rent your property. OB loans are for "primary residences" only and if they get wind that you've rented your property...even at a loss to offset your mortgage bill...they have the power to make your principal come due.

Again, I think the OBL program had good intentions. But I think it was designed to work only in the "best of economic times"

JUN

Hi Matt - These are extraordinary economic times and no lender took in to consideration the snowball effect we are seeing today. Where several programs have been put in place to help people, the Housing Finance Agencies who put the funding in to buy the interest rates down initially for programs like Oregon Bond are seeing such tremendous budget problems themselves they do not have the funding it would take (Federal funding sources don't include them) to offer programs like the Home Affordable Refinance and Modification programs that were part of last year's Federal stimulus acts. Occupancy restrictions can be an added hurdle for families facing a move. There are many struggling home/property owners that like you are having to "go it alone" without program assistance. Hopefully, you are able to hang on, as there are signs that many markets are stabilizing. I wish you the best.

JUN

Hi Karen,

My husband has been unemployed since Jan and it's looking like we may have to move in order to find him another job. Of course, we are also stuggling heavily to make our payments. We are two months behind. We are at the point where we think foreclosure may be our only choice, and we have an Oregon bond loan (bought in 2006, so we are very underwater). Do you have any advice for us? What are the tax ramifications for bond loans? We have tried to modify payments but there isn't anything the lender can do for us. Help!

JUN

A. Sanders -

Sorry to hear of your struggles in this economic downturn that is affecting so many people. I, too, had encountered the "not eligible for Home Affordable" answer for clients who were looking to refinance to lower their monthly expenses due to financial hardship, and learned that since their Oregon Bond loan was not sold to Fannie Mae or Freddie Mac and the private mortgage insurance company at that time would not transfer their mortgage insurance policy to a new loan, the homeowners could not refinance with the Home Affordable Refinance program. The suggestions I would have for you based on your having already followed the steps to try to workout something with your existing lender would be:
a) Contact a Hud approved housing counselor http://www.hud.gov/offices/hsg/sfh/hcc/fc/ (follow this link to look up who is closest to you)
b) if your Oregon Bond loan has private mortgage insurance on it, contact that insurance company (try MGIC at http://www.mgic.com/pdfs/71-42843_loss_mit_guidelines.pdf who did a lot of the Oregon Bond Loan policies) and see if they have any assistance available to you through the policy they have in place on your loan.

I've contacted state representative to see if they have any other tips for homeowners who have Oregon Bond Loans and are experiencing financial hardship, and will post their response here.

JUN

Thank you Karen! I will try those steps. I look forward to seeing if you hear from any state representatives!

A. Sanders - You are very welcome. I HAVE heard back from the State:

http://activerain.com/blogsview/1128344/have-you-encountered-financial-difficulties-and-you-have-an-oregon-bond-loan-

I wish you the best!

JUL

Hi Karen,

I'm sorry for all the questions! I so appreciate the help. :) How do I know if I have PMI on my Oregon Bond loan? I was thinking of contacting MGIC as you suggested above, but I don't know if I even have PMI, and if I do, who owns it. All I know is that my monthly payment includes property taxes.

Thanks Again! April

JUL

A. Sanders - No apology necessary! I love to hear about people proactively taking steps to resolve financial difficulties vs. hide from them, and will do what I can to support them. MGIC is the insurer on the majority of Oregon Bond loans I've done, so I figure they are a good place for you to start. If you put less than 20% down, there IS a PMI policy in place. If you call MGIC and give them your address,t hey can look it up to see if they hold the policy on your loan. 800-272-4071 Or, you may call your existing lender and ask them who the PMI company on your loan is.

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