Affordable Housing Programs In Portland
While rising home values in the Portland area may be good news for existing homeowners, the prospects for first-time buyers to find affordable housing are become increasingly bleak. The average home price appreciation of nearly 17% over the past 12 months is easily outpacing job and wage growth over the same period. What’s a first-time buyer to do?
A recent newsletter from the Portland Metropolitan Association of Realtors (PMAR) touched on this very subject, highlighting some financing options and resolutions passed by both the City of Portland and Metro.
Affordable Housing Programs
The Portland Housing Center sponsors a number of affordable housing programs, as well as home-buying education and credit repair services.
Note: Some of these programs use ‘median family income’ limits to define participation. Here are those incomes for Multnomah County:
- One person: $46,850
- Family of two: $53,500
- Family of three: $60,200
- Family of four: $ 66,900
American Dream Down Payment Assistance - This program offers up to a $10,000 “loan” which can be used toward a down payment and/or closing costs to buyers in Multnomah County. The loan interest rate is 0%, but must be repaid at the time the owner sells the property. Buyers must have an income no greater than 80% of the median family income (see above).
Mortgage Assistance Program (MAP) - In this scenario, the buyer qualifies for a traditional 80% mortgage, and uses the MAP to fund the remaining 20% (i.e. your down payment) at a fixed, 30-year rate of 6.00% (which is a great deal, compared to 80/20 programs offered through standard lender programs).
Individual Development Account (IDA) - The IDA is savings account on steroids, in which the Portland Housing Center deposits $3.00 for every $1.00 you place into your IDA ‘savings account’. You can deposit up to $2,000 into your IDA, giving you up to $8,000 towards closing costs, down-payment, home inspection fees, etc.
Oregon Tax Credit – A new program in 2006, qualified buyers can receive up to a $2,000 credit on their Oregon income taxes. You must have established an IDA (see above) and have an income of less than 80% of the median family income.
For more information, please contact the Portland Housing Center.
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1 comment May 26th, 2006
