What are the eligible loan types?
- Conventional: Must follow Fannie Mae or Freddie Mac guidelines
- FHA: 203(b) and 234(c) per FHA guidelines
- VA: Must meet VA guidelines
- USDA RD: Must meet USDA guidelines
- HUD Section 184: Must meet HUD guidelines
What are the loan terms for a primary mortgage?
- Fixed-rate loan with full amortization, 30 years or less
- First lien position required
- Escrow must cover property insurance, taxes, and homeowners association fees (if applicable).
- Interest rates must be reasonable and are subject to ReOregon review.
What are the ineligible primary mortgage terms?
- Mortgages must be from a licensed, recognized lending institution in Oregon; mortgage brokers are not permitted.
- The following loan types are not allowed:
- No-doc mortgages
- 100% financing mortgages (except VA, USDA-RD, and HUD Section 184 loans)
- Interest-only or no-income-check mortgages
- Balloon payments or negative amortization loans
- Adjustable-rate mortgages
- Non-occupying co-borrowers, cosigners, or guarantors are not permitted on the deed or have any ownership interest in the property. Only individuals who are part of the household and meet occupancy requirements may be listed on the deed.
- Mortgages must be originated through the lender’s retail channel.
- Prepayment penalties with high refinance fees are not allowed.
What are the contingency requirements of the purchase agreement?
Any offers made to buy a new home must include the following contingencies in the purchase agreement:
- At least 25 days for inspections
- At least 60 days to close
- A satisfactory environmental review
- A standard home inspection, including radon testing, lead-based paint inspection (if applicable), and asbestos testing (if applicable)
- An appraisal confirming the home's value meets or exceeds the purchase price
- A clear title confirmed by a title search
- Availability of ReOregon DPA funding at closing
What types of properties are permitted?
Properties must be within any of the eight counties impacted by the 2020 Labor Day Disasters (Clackamas, Douglas, Jackson, Klamath, Lane, Lincoln, Linn, or Marion). Eligible types of properties include:
- One-unit single-family home
- Manufactured home (2010 or newer)
- Townhouse in a building of four units or less
- Condominium in a building of four units or less
What are the ReOregon DPA loan requirements?
- ReOregon DPA can provide up to $150,000 for down payment and/or closing costs.
- Borrowers cannot receive cash back from DPA funds.
- The homebuyer is responsible for providing earnest money.
- Monthly housing costs (including any park lease fees) must be at least 20%, but no more than 30%, of the household’s monthly income, typically met through a primary mortgage.
- The debt-to-income ratio cannot exceed 43%.
What materials are available for reference?
Lender Term Sheet – This document explains the DPA program’s terms and requirements for lenders and Realtors. Once an application is reviewed and pre-approved, each participant will receive a DPA Pre-Approval Letter.