Oregon Bond Residential Loan Program Guide

Guide to the Oregon Bond Residential Loan Program

The Oregon Bond Residential Loan Program provides affordable home financing options and down payment assistance to help residents of Oregon achieve homeownership. Designed to support first-time buyers and those with moderate incomes, this program offers fixed-rate mortgages and financial assistance to reduce the upfront costs of purchasing a home. Below is a detailed guide to the program’s benefits, eligibility requirements, and application process for 2025.

1. Program Overview:

• Purpose: The Oregon Bond Residential Loan Program aims to make homeownership accessible by offering affordable loans and assistance with down payments and closing costs.
• Loan Types: The program offers two loan options:
  • Cash Advantage Loan: Includes a fixed-rate mortgage with a grant for down payment assistance.
  • Rate Advantage Loan: Offers a lower interest rate but does not include down payment assistance.
• Fixed-Rate Mortgages: Both loan options feature 30-year fixed-rate mortgages, providing stable and predictable monthly payments.

2. Eligibility Requirements for 2025:

To qualify for the Oregon Bond Residential Loan Program, applicants must meet the following criteria:

• First-Time Homebuyer: The program is primarily for first-time buyers, defined as individuals who have not owned a home in the past three years. Some exceptions may apply, such as for veterans or buyers purchasing in targeted areas.
• Income Limits: Household income must fall within limits based on area median income (AMI). These limits vary by location and household size and are updated annually.
• Credit Score: A minimum credit score of 640 is required for most applicants, although higher scores may be needed depending on the loan type.
• Property Requirements: Eligible properties must be located in Oregon, used as the buyer’s primary residence, and meet price limits established by the program.
• Homebuyer Education: Completion of an approved homebuyer education course is mandatory to ensure buyers are prepared for homeownership.

3. How to Apply:

To apply for the Oregon Bond Residential Loan Program, follow these steps:

• Contact a Participating Lender: Begin by reaching out to a lender approved by the program. They will help determine your eligibility and guide you through the application process.
• Gather Required Documents: Prepare documentation such as proof of income, tax returns, credit history, and your certificate of completion for the homebuyer education course.
• Complete the Application: Work with your lender to fill out and submit your application. Your lender will review the details and notify you about loan approval.

4. Homebuyer Education Course:

• Mandatory Requirement: All participants must complete an approved homebuyer education course. This course provides valuable information on budgeting, understanding mortgage terms, and managing homeownership responsibilities.
• Course Availability: The course can be taken online or in person. Upon completion, a certificate will be issued, which must be included with your loan application.

5. Down Payment Assistance:

• Cash Advantage Grant: For those choosing the Cash Advantage Loan, a grant is provided to help with down payment and closing costs. This grant does not need to be repaid.
• Rate Advantage Loan: While this option does not include down payment assistance, it offers a lower interest rate, potentially reducing long-term costs.

6. Finalizing the Loan:

• Loan Approval: Once approved, your lender will walk you through the final steps, including reviewing loan terms, signing necessary documents, and preparing for closing.
• Closing Costs: While the program assists with many upfront expenses, some closing costs may still apply. Your lender will provide a clear explanation of these costs and payment expectations.

The Oregon Bond Residential Loan Program is dedicated to making homeownership a reality for more residents of Oregon. By offering affordable financing options and financial assistance, the program helps buyers overcome common barriers to homeownership. Begin your journey to owning a home with the Oregon Bond Residential Loan Program today.