Oregon Rate Advantage Program Guide

Guide to the Oregon Rate Advantage Program

The Oregon Rate Advantage Program is a home financing initiative that offers low-interest-rate mortgages to make homeownership more affordable for residents of Oregon. This program is ideal for buyers looking to reduce their long-term costs through lower monthly payments. Below is an updated guide to the program’s benefits, eligibility criteria, and application process for 2025.

1. Program Overview:

• Purpose: The Oregon Rate Advantage Program provides low-interest mortgages, helping buyers reduce the overall cost of homeownership.
• Loan Terms: The program features a 30-year fixed-rate mortgage, ensuring stable monthly payments throughout the loan term.
• No Down Payment Assistance: Unlike some programs, the Rate Advantage Program focuses on offering lower interest rates rather than grants or assistance for down payments or closing costs.

2. Eligibility Requirements for 2025:

To qualify for the Oregon Rate Advantage Program, applicants must meet the following criteria:

• First-Time Homebuyer: This program is primarily designed for first-time buyers, defined as individuals who have not owned a home in the past three years. Exceptions may apply for veterans or buyers in targeted areas.
• Income Limits: Household income must fall within limits set by the program, based on area median income (AMI). These limits are adjusted annually and vary by location and household size.
• Credit Score: Applicants must have a minimum credit score of 640. Additional requirements may apply depending on the lender.
• Property Requirements: The home must be located in Oregon, used as the buyer’s primary residence, and meet the program’s price limits and eligibility guidelines.
• Homebuyer Education: Completion of a homebuyer education course is mandatory to ensure buyers are fully informed about the responsibilities of homeownership.

3. How to Apply:

Follow these steps to apply for the Oregon Rate Advantage Program:

• Contact a Participating Lender: Reach out to an OHCS-approved lender to determine your eligibility and begin the application process.
• Gather Documentation: Prepare required documents such as proof of income, tax returns, credit history, and your homebuyer education course certificate.
• Submit Your Application: Work with your lender to complete and submit your application. They will review your information and notify you of your loan approval status.

4. Homebuyer Education Course:

• Mandatory Requirement: All applicants must complete an approved homebuyer education course, which provides valuable knowledge about budgeting, mortgages, and homeownership responsibilities.
• Course Availability: The course is available both online and in person. Upon completion, participants receive a certificate that must be included with the loan application.

5. Key Benefits of the Rate Advantage Program:

• Lower Interest Rates: The program’s primary focus is to offer reduced interest rates, which can significantly decrease monthly mortgage payments and long-term costs.
• Fixed-Rate Stability: With a 30-year fixed-rate mortgage, buyers benefit from predictable monthly payments throughout the life of the loan.

6. Finalizing the Loan:

• Loan Approval: After your application is approved, your lender will guide you through the final steps, including reviewing the loan terms, signing necessary documents, and preparing for closing.
• Closing Costs: While the program focuses on lowering interest rates, buyers are responsible for covering closing costs. Your lender will provide a detailed explanation of these costs and payment expectations.

The Oregon Rate Advantage Program is a great option for buyers seeking to reduce their long-term housing costs with a low-interest mortgage. By focusing on affordability and stability, this program helps Oregon residents achieve their homeownership goals in 2025. Take the first step toward owning your home with the Oregon Rate Advantage Program today.