Section 5: Focused Demographics
To address disparities in homeownership, the department has developed a Focused Demographics DPA option using loan demographic data and providing increased DPA with more favorable terms to borrowers who apply for and meet the Focused Demographics criteria.
5.1 Focused Demographics Criteria
To be eligible for Focused Demographics, borrowers must apply for and meet the Flex Lending FirstHome product guidelines and two of four demographic criteria below:
- Household of four or more people
- A household member with a disability
- Disability is defined under ORS 456.515 (9). “Person with a disability” means a person who has a physical or mental impairment that substantially limits one or more major life activities.
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Front-end debt ratio of 28% or higher
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Sole Head of Household – *Household includes only one adult who is not an eligible dependent with at least one eligible dependent living in the household who is:
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Under 18
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A household member with a disability
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Age 62 or older
Please note: Household must include only one adult who is not an eligible dependent. All other household members must be eligible dependents.
5.2 Focused Demographics DPA
Focused Demographics DPA means down payment assistance for borrowers who meet the Focused Demographics criteria. Our Focused Demographics DPA is 5%.
5.3 Focused Demographics DPA Terms
- Forgivable Second, for borrowers whose income is at or below 80% of AMI. DPA is in the form of a forgivable second mortgage loan bearing 0% interest and no payments.
Terms are in Section 6.3.
- Amortizing Second, for borrowers whose income is above 80% and up to 120% of AMI. DPA is in the form of a 30-year amortizing second mortgage loan with an interest rate 1% above the interest rate of the first mortgage loan. Flex Lending: FirstHome 15
5.4 Standard DPA Terms
Standard DPA is 4% of total loan amount.
- Forgivable Second, for borrowers whose income is at or below 80% of AMI. DPA is in the form of a forgivable second mortgage loan bearing 0% interest and no payments.
Additional loan terms are in Section 6.3.
- Amortizing Second, for borrowers whose income is above 80% to 120% of AMI, DPA is in the form of a 20-year amortizing second mortgage loan. For borrowers whose income is above 120% of AMI, DPA is in the form of a 10-year amortizing second mortgage loan. All amortizing second mortgage loans have an interest rate 1% above the interest rate of the first mortgage loan.