Single Family Finance Section

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Oregon Housing and Community Services

• Single Family Finance Section
• Phone [phone]
• www.oregonbond.us

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Oregon Housing and Community Services

• Oregons State Housing Finance Agency (HFA).
• Assists non-profit and for profit developers
  build affordable multi-family housing in Oregon.
• Administer federal housing anti-poverty
  programs in partnership with a variety of
  agencies.
• Sell tax-exempt bonds to purchase single and
  multi-family housing loans.
• Home of the Oregon Bond Home Loan and the
  Purchase Assistance Loan (PAL).
• We are also a main sponsor of the Regional
  Housing Centers.

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Oregon Bond-2005 Borrowers

• Served 1171 low and moderate income households.
• 98 served were first-time homebuyers.
• Over 70.5 of the households had household
  incomes at or below 80 of the state or area
  median income.
• Average household income was less than 45,000.
• Average loan size in 2006 increased by 13.8 to
  153,294.
• Average borrower age was 34.
• Average household size was 2 persons.

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Oregon Bond Benefits

• We can provide your clients access to an on-going
  supply of below market rate home loans and
  closing cost assistance for households up to 100
  median income.
• We can help you serve more clients by increasing
  their purchasing power or they might buy more
  house!
• Its a great way to build life-long relationships
  with your clients! They may even tell their
  friends and family.
• We also offer 90 day rate locks for existing
  homes and 120 rate locks for newly constructed
  homes and no lock fees. No need to worry about
  rates going up!

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Cash to Close or Great Rate?CashAdvantage
RateAdvantage

• Below market rate
  
• 30 year fixed rate
• Compatible with gifts, grants, and DPAs
• Assumable
• Maximum purchasing power
• No Prepayment penalty

• Includes 3 Cash Assistance to pay closing costs,
  pre-paids or under certain conditions down
  payment.
• .50 higher than the RateAdvantage option
• 30 year fixed
• No secondary liens
• Cash assistance is like a grant
• No Prepayment Penalty
• Less cash needed to close

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Oregon Bond-Borrower Qualifications

• First-time homebuyers May not have owned or
  occupied a home in last three years (unless
  purchasing in a targeted area).
• Household income limit (100 of state median or
  higher in high cost housing areas) 58,900
  statewide 72,892 for Portland Metro 68,100
  for Benton County 65,274 Deschutes County and
  63,480 Jackson County.
• Must occupy as Primary Residence.

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Oregon Bond Purchase Limits

• OHCS has established Purchase Price Limits which
  are governed by the Internal Revenue Service
  (IRS). Depending on the location of the home
  being purchased, the Purchase Price (Acquisition
  Cost) Limits are listed below
• County Non-Targeted Area Targeted Area
• Benton 276,750 Not Applicable
• Clackamas 337,026 Not Applicable
• Clatsop Not Applicable 316,250
• Columbia 337,026 411,921
• Deschutes 353,250 Not Applicable
• Jackson 326,131 398,605
• Josephine Not Applicable 357,355
• Lane 253,125 309,375
• Lincoln 249,750 Not Applicable
• Multnomah 337,026 411,921
• Tillamook 267,750 Not Applicable
• Washington 337,026 Not Applicable
• Yamhill 337,026 Not Applicable
• All Other Counties 237,031 289,705

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Oregon Bond-Other Requirements

• Must meet applicable mortgage insurance
  requirements or other lender requirements.
• Bankruptcy must be discharged at least two years
  prior to closing the program loan.
• Foreclosure or deed-in-lieu of foreclosure must
  be at least five years prior to loan closing the
  program loan.

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Oregon Bond-Program Compatibility

• Compatible with FHA, USDA Rural Development and,
  Conventionally Insured Loans (97 LTV).
• May be used with all types of secondary loan
  products, gifts, and other Down Payment
  Assistance Programs (DPAs).
• Compatible with PAL, Home Purchase Assistance
  Program, Hometart Program, Individual
  Development Accounts, Section 8 Housing Choice
  Vouchers, and city or county funded DAPs.
• Compatible with the Home-Ownership Opportunity
  Program (HOOP) loan too!

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Oregon Bond-Fees

• Combined Loan Origination Discount Fee may not
  exceed 1.75 of the loan amount.
• Total of the Document Preparation, Processing,
  Underwriting or other similar fees may not exceed
  490.
• Other standard third party fees that are usual
  and customary are acceptable.

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Oregon Bond-Eligible Properties

• Single-family homes (1 unit) in Oregon.
• Purchase price must not exceed applicable limits
  (higher limits for targeted areas).
• All types of single-family homes qualify (except
  for manufactured homes in parks).
• Must also comply with Mortgage Insurance property
  standards such as FHA Minimum Property Standards.

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IRS Recapture Tax

• The purpose is to assure the lower rate benefits
  low to moderate income families.
• Tax only applies if the home is sold within the
  first nine years of ownership.
• Tax is applicable only if borrowers income at
  time of sale exceeds an income threshold which is
  significantly higher than the current income
  limit.
• Tax could never exceed 6.25 of the original loan
  amount but is significantly reduced if home is
  sold in any year other than the fifth year of
  ownership.

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Who Collects the Tax?

• Tax is paid to the IRS (not the state).
• IRS Form 8828 is filed with a borrowers 1040
  Federal Tax Return for the tax year in which the
  home is sold.
• Lender is responsible for disclosing this
  potential tax liability at time of loan
  application.
• Specific tax questions should be directed to the
  IRS or a licensed tax preparer.

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Purchase Assistance Loan-PAL

• State has over 800,000 available funds for 2007
• Its a down payment and closing cost assistance
  loan for low income first-time homebuyers.
• Up to 10,000 loan at 0 interest.
• No payments due until payoff or transfer of
  title.
• OHCS currently has funding for 80 households.
• The PAL loan qualifies as a borrowers minimum
  investment for FHA loans.
• Must be used with Oregon Bonds RateAdvantage
  Home Loan option.

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PAL-Eligible Properties

• Single-family homes (1 unit) in Oregon not
  located in either Clackamas, Multnomah,
  Washington Counties or Salem-Keizer or
  Eugene-Springfield.
• Purchase price must be at or below FHA mortgage
  limits.
• Must pass an Housing Quality Standards (HQS)
  inspection or FHA Minimum Property Standards.
• Existing home must pass a Pest Dry Rot
  inspection.
• To comply with federal Lead Based Paint laws a
  home built prior to 1978 may not have any
  blistering, cracking, chipping or pealing paint
  on any interior or exterior surface.

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PAL-Borrower Qualifications

• First-time homebuyers May not have owned or
  occupied a home in last three years (unless a
  single-parent or displaced homemaker).
• Household income limit is 80 of the area median
  income adjusted for household size ( see chart).
• Must occupy as their Primary Residence.
• No more than 5,000 in liquid assets after
  closing.
• The house payment (PITI) must be between 25 and
  45. The total debt ratio may not exceed 45.
• Must complete homebuyer education class.
• No recent bankruptcies (2 years) or foreclosures
  (5 years).

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Where can I get more info about Oregon Bond or
PAL?

• Visit www.OregonBond.us.
• Call toll free at 1-877-ST8-BOND!
• Work with a local lender you can find on our
  website.
• Work closely with the staff at the Regional
  Housing Center!

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Any Questions?Thank You!