Loan Benefit Comparison

ODVA Home Loan vs. Federal VA Home Loan Guaranty

Oregon is one of just a handful of states to offer its own home loan program, which it has done ever since the agency was founded in 1945. The ODVA Home Loan is a separate and distinct loan from the federal VA Home Loan Guaranty.

Comparison of Features

Read below to see details on home loans from ODVA and the federal VA:

ODVA Home Loan

Lender/Guarantor
ODVA is the lender.

Interest Rates
ODVA sets the interest rates and fees.

Fees
ODVA does not allow participating mortgage originators to charge additional "junk" fees. Third-party fees apply in both ODVA and federal VA programs.

Mortgage Insurance
Private Mortgage Insurance (PMI) is required for loans with less than 20% down payment. PMI costs are in addition to interest costs, but PMI will be canceled per federal law: Automatic at 78% LTV if current; Conditional at 80% LTV.

Down Payment
5% minimum down payment at this time.

Loan Origination
Loans are originated through a network of participating brokers and lenders who have agreed to accept specific compensation to be paid by ODVA.

Loan Servicing
Once a loan is closed, all ODVA loans are services by ODVA. Servicing does not transfer. ODVA provides multiple loan serving functions at no additional charge, including reamortization on request, following an unscheduled balance reduction of $3,000 or more and automatic payment service.

Federal VA Home Loan Guaranty

Lender/Guarantor
USDVA is the guarantor.

Interest Rates
Markets set the interest rate and fees.

Fees
USDVA places limitations on the fees a veteran may pay, so often the seller must contribute to the transaction. Funding fees can usually be added to the loan and will be waived for veterans receiving VA disability compensation. Once paid, it is usually not refundable.

Mortgage Insurance
Federal VA Home Loan Guaranty is a "life of loan" meaning the benefit reduces the risk to the lender.

Down Payment
Zero down payment loans are possible

Loan Origination
Mortgage originators set the various rates and fees, subject to federal VA limitations on what costs may be paid by the veteran borrower. Other fees and costs are often paid by the seller.

Loan Servicing
Loans may be serviced at the originating lender, but servicing may also be transferred to other lenders or mortgage servicing firms. Loan servicers may charge fees for simple services such as reamortization, loan payoff letters, copies of annual statements, etc. USDVA may limit those fees, but does not prohibit charges.

Third-party costs are similar for both programs. These include:
Appraisal, Title Insurance, Recording Fees, Flood Determination, Credit Reporting Fees, Escrow Fees, etc.