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Oregon Bond Loan - Still the Best Deal In Town

By Karen Cooper

Mortgage and Lending with Karen Cooper | Sr Mortgage Loan Originator ! NMLS # 223305 | First Federal Bank of Florida, Ocala, FL NMLS 223305

September 18, 2007 07:53 AM

I love the Oregon Bond Loan! This program represents a wonderful collaboration of industry partners interested in giving low-to-moderate income buyers a leg-up to experience the many proven widespread benefits of home- ownership experienced not only by the homeowner and their families, but the community at large. In an area like Southern Oregon where living wages are not keeping pace with home prices, it takes a program like the Oregon Bond Loan to keep our police officers, teachers, nurses, and service industry in general by offering the stability of homeownership versus renting.

What is the Oregon Bond Loan? The Oregon Bond Loan is a program through Oregon Housing and Community Services (OHCS), Oregon's State Housing Finance Agency. The Department periodically issues mortgage revenue bonds to fund below market interest rate loans for below median income homebuyers in Oregon. The program offers a below market rate (RateAdvantage) and/or cash assistance of 3% (CashAdvantage) for those buyers who find coming up with the necessary down payment and closing costs a challenge. Buyers might layer these programs with an available down payment assistance program, such as the State's PAL offered through OHCS or City of Medford's First Time Homebuyer Down Payment Assistance Program. People who never thought they would experience the dream of homeownership find out otherwise. Loans under this program must be insured by the Federal Housing Administration (FHA), USDA Rural Development, or a conventional loan insured by a qualified mortgage insurer approved by the department, if the loan to value is greater then 80%. The maximum loan amount will be determined by the mortgage insurance type and will be based on the appraised value of the property or purchase price, whichever is less. Conventional loans that close with a loan-to-value of 80% or less do not require mortgage insurance.

These programs do require extra effort on the part of your lending partners, so it is imperative that you work with one who understands the extra effort needed, one that will go that extra mile for you. For more information, go to www.Quality4Loans.com .

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Todd Clark - Retired

eXp Realty LLC - Tigard, OR

Principle Broker Oregon

I love it in Oregon when the government actually helps people. It doesn't happen often, but this program sounds like a wonderful boost to our states economy. What are the credit requirements for such loans or is it like the DPA alliance, you have to still qualify for a regular loan?

Sep 21, 2007 06:24 PM

Karen Cooper

Karen Cooper | Sr Mortgage Loan Originator ! NMLS # 223305 | First Federal Bank of Florida, Ocala, FL - The Villages, FL

Helping Homeowners w/Home Loans in 27 US States

Thanks for commenting, Todd. The Oregon Bond loan is definitely not a subprime loan. Buyers that qualify for FHA are a good match for this program, so some minor credit issues can get by, but that's it. The program helps most by a) giving buyers an interest rate that is 1% under market rate (see the State's website at www.oregonbond.us where for next week, State shows 5.50% for the RateAdvantage, 6% for CashAdvantage which gives buyers 3% toward their down payment, closing costs, prepaid expenses b) helping with cash needed. On one transaction I am working on that closes next week, the buyers put all their available cash toward their down payment, and are using the Cash Advantage and a Seller credit to pay all closing costs and prepaid expenses, including lender paid MI. For loan officers that like to make back points, or aren't in to doing a little extra paperwork, this is not the program for them as the fees are held down to help the buyers... great program for buyers, though, and I use it whenever they qualify.

Sep 22, 2007 06:34 AM

David Hayes

Buyers Account, LLC - Boynton Beach, FL

Hey Karen,

I noticed this post of yours and you seem knowledgable about down payment assistance programs and wanted to make sure you knew about www.BuyersAccount.Com where we can provide down payments to anyone regardless of credit or job history through our unique "Earned Income" program.

If you are familiar with Ameridream or Nehemiah then you understand our business model only we are not a gifting or granting program. We are a for profit company that uses the "Earned Income" business model to provide down payments to our employees.

It is fully legal and RESPA complaint. Please take a look at our website and let me know if you have any deals we can help you close.

Thank you,

Sep 24, 2007 03:59 PM

Thanks for the comment, David. I am familiar with the Ameridream and Nehemiah down payment assistance programs. I had read about the Earned Income program approach to meeting down payment criteria several months ago, but that organization did not really clarify the program very well. In reading through your website, it appears you have addressed all underwriting/legal/tax issues very well. I've forwarded the information to a couple of my favored lending sources to see what their feedback is. Being "old school", I have trouble with the concept of getting credit for selling a membership, so will withhold weighing in until I get more lender input. Always happy to see some out of the box thinking in this challenging market.

Sep 25, 2007 06:06 AM

Mobile Austin Notary

Apostille/Authentication/Embassy Legalization, Notary Public, Loan Signing Agent & Process Server Services - Austin, TX

www.mobileaustinnotary.com

Thanks for the great information!

Jan 30, 2009 01:53 AM

Thanks for stopping by, Jenette.

Jan 30, 2009 05:23 AM

Art Marine

Mortgage Solutions Financial - Lake Oswego, OR

Loans that Fit your Life

It is always good to point out the big CAVEAT with the Oregon Bond...that of course is the recapture tax. We had a customer today that was really upset when he found out there were strings attached.

Feb 08, 2010 11:18 AM

Oregon Bond Loan - Still the Best Deal In Town

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