Oregon Restores First-Time Buyer Assistance Program

Many banks and lenders offer their own first-time homebuyer mortgage programs, but local government agencies also provide publicly-funded assistance options worth looking at.

Dr. James Maciokas of Marquee Mortgage shares a recently reinstated program offered by the State of Oregon. This program was temporarily suspended until funding concerns created by the November 2006 election were resolved.

Oregon Housing and Community Services have recently issued bonds to help first-time home buyers afford a home. The revenue collected from the sale of these bonds is used to buy down the interest rate of the loan to 5.25% for the “BEST RATE” program or to 5.75% for the “CASH to CLOSE” program which will pay up to 3% of the down payment or closing costs. (Rates as of January 3, 2007.)

Who is Eligible?
Qualified homebuyers cannot have household income levels exceeding $58,000 to $72,000 annually, depending on the county of residence. And they must be first-time homebuyers or not have owned and occupied a residence in the prior three years. The first-time homebuyer requirement may be waived if purchasing in a targeted area.

What kind of home can you buy?
You may purchase either newly constructed or existing homes anywhere in Oregon, including single family residence, condos, units in a qualified planned development, and even manufactured homes on a foundation. The purchase price may not exceed a set amount depending on area ($276,000 to $411,000). This program may not be used to refinance an existing mortgage.

Do you have to repay anything?
If you sell the home within the first nine years and your income level exceeds the median level +5% for each year of ownership, you may have to pay a recapture fee, which will depend on the year the house is sold and how much the income level exceeds the guidelines. If you own the home for nine years, regardless of your income, no recapture fee will apply.

If you have any questions about this home loan program or would like to see if you qualify please feel free to contact me.

Dr. James Maciokas - email
Marquee Mortgage
Equal Housing Lender
971-327-1457 office
971-678-3700 cell

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2 comments January 11th, 2007