Section 3: Property Eligibility
3.1 Eligible Loan Area
Only residential real estate located in Oregon is eligible for this program.
3.2 Property Requirements
Eligible properties:
- One-unit, single-family residences
- Condominiums
- Townhomes
- Planned unit developments (PUD)
- Manufactured homes (both single-wide and multi-wide) on real property
- Community land trust
- Leasehold
Ineligible properties:
- Multiplexes (2-4 units, 5+ units)
- Properties with accessory dwelling units (ADUs)
- Manufactured homes classified as personal property
3.3 Purchase Price or Appraised Value Limitation
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Purchase price limits: Purchase price limits are established annually following guidance set forth by the Internal Revenue Service and are published on the department’s website.
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Housing Stability Council: Mortgage loans equal to or exceeding 95% of the local area purchase price limit must receive approval from the Housing Stability Council prior to the department purchasing the mortgage loan.
3.4 Targeted Area Census Tract
Borrowers purchasing properties in targeted areas are not required to be first-time homebuyers.
Targeted Area Defined
Targeted areas refer to locations within the state designated as Qualified Census Tracts.
- A Qualified Census Tract is defined under 26 USCA Section 143(j)(2)(A) as a Census tract in which 70% or more of the families have income that is at or below 80% of the statewide median family income or an area of "chronic economic distress" as designated and approved in accordance with 26 USCA Section 143(j).
- Census tracts can be identified using the FFIEC Geocoding System and a list of targeted and non-targeted areas by county in Oregon is published on the department’s website.
3.5 Hazard Insurance
Maximum deductible for hazard insurance is $2,000.
3.6 Flood Insurance
Maximum deductible for flood insurance is $5,000.
3.7 Escrow Payments
A reserve/escrow account for the collection of hazard insurance premiums, flood insurance premiums, taxes, and mortgage insurance premiums (if applicable) are required for all mortgage loans regardless of loan-to-value (LTV).