Single Family Homeownership Sectio

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Oregon Housing and Community ServicesWhat we
do matters!

• Homeownership Section
• Phone [phone]
• www.oregonbond.us

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Oregon Housing and Community Services

• Oregons State Housing Finance Agency (HFA).
• Assist non-profit and for profit developers
  finance affordable multi-family housing in
  Oregon.
• Administer federal housing anti-poverty
  programs in partnership with a variety of
  agencies.
• Sell tax-exempt bonds to purchase single-family
  loans and finance multi-family housing projects.
• Home of the Oregon Bond Home Loan (also known
  as the Residential Loan Program or Single Family
  Mortgage Program).
• A main sponsor of the Regional Housing Centers.

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2008 Borrowers

• Served 1,598 households.
• 98.34 served were first-time homebuyers.
• Average household income was 50,423.
• Average loan size in 2008 increased by 7.98 to
  177,617.
• Average borrower age was 34.68.
• Average household size was 2.19 persons.
• Newly constructed homes were 13 of the total.

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Income Race Ethnicity

• 2008 22.5 of loans were to households less than
  80 Median Family Income
• 2008 Race 1.80 American Indian 2.02 Asian
  1.87 African American .36 Pacific Islander
• 2008 Ethnicity 9.50 Hispanic

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Historical

• Since program inception, we have purchased nearly
  34,000 loans for over 2.6 Billion.
• Currently we have a portfolio of 7,780 loans for
  956,006,222.

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Interest Rate Comparison - 2008
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Benefits

• Provide first-time borrowers access to an
  on-going supply of below market rate home loans
  to promote homeownership.
• Serve more borrowers by increasing their
  purchasing power.
• Generous with rate lock, allowing 120 days, with
  the possibility of one 60 day extension and no
  lock fees. No need to worry about rates going
  up!
• OHCS has a history of working well with lending
  partners.

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Borrower Qualifications

• First-time homebuyers May not have owned and
  occupied a Primary Residence in the last three
  years unless purchasing in a Targeted Area.
• Must occupy the property as a Primary Residence.
• Income limits apply (higher limits for Targeted
  Areas).

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Eligible Properties

• Single-family dwellings (1 unit only) in Oregon.
• Purchase price must not exceed applicable limits
  (higher limits for Targeted Areas).
• All types of single-family homes qualify,
  including condominiums, except for manufactured
  homes on leased/rented land.
• Must also comply with Mortgage Insurance property
  requirements such as FHA Minimum Property
  Standards.

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Oregon Bond Purchase Price Limits

• County Non-Targeted Area Targeted Area
• Benton 303,750 NA
• Clackamas 376,875 NA
• Clatsop NA 382,250
• Columbia 376,875 460,625
• Curry 316,125 386,375
• Deschutes 402,750 NA
• Hood River 354,375 NA
• Jackson 380,250 464,750
• Josephine NA 357,500
• Lane 309,375 378,125
• Lincoln 281,250 NA
• Marion 265,500 324,500
• Multnomah 376,875 460,625
• Polk 265,500 NA
• Tillamook 309,375 NA
• Washington 376,875 NA

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Other Requirements

• Must meet applicable mortgage insurance
  requirements or other lender requirements.
• Bankruptcy must be discharged at least two years
  prior to closing the program loan.
• Foreclosure or deed-in-lieu of foreclosure must
  be at least five years prior to closing the
  program loan.
• Lender must approve loan as a fully documented,
  conforming loan of A or A- quality. No Subprime
  Bond loans!

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Program Compatibility

• Compatible with FHA, USDA Rural Development
  (Guaranteed Rural Loans), and Conventional
  Uninsured Loans with 80 LTV.
• May be used with all types of secondary loan
  products, gifts, equity gifts, and other
  Downpayment Assistance Programs (subject to
  mortgage insurer approval).

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Fees

• Combined Loan Origination Discount Fee may not
  exceed 1.75 of the loan amount.
• Total of the Document Preparation, Processing,
  Underwriting or other similar fees may not exceed
  490 (or what is reasonable and customary).
• If a mortgage Broker is involved in the
  transaction, they can also charge up to the 490
  (or what is reasonable and customary) other fee
  limit.
• Other standard third party fees that are usual
  and customary are acceptable.

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IRS Recapture Tax

• The purpose is to assure the lower rate benefits
  low to moderate income families.
• It is possible a borrower could pay a Federal
  Income Tax if
• Home is sold within the first nine years of
  ownership, and
• Borrower makes a profit on the sale of the home,
• And, tax is only applicable if borrowers income
  during year of sale exceeds an income threshold
  which is significantly higher than the current
  income limit. Therefore most borrowers do not
  have a recapture tax liability.
• In no case would the tax ever exceed 6.25 of the
  original loan amount (worst case scenario) but is
  significantly reduced if the home is sold in any
  year other than the fifth year of ownership.

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CashAdvantage Home Loan

• Grants 3 Cash Assistance to pay closing costs,
  pre-paids or down payment.
• Interest rate is higher than the RateAdvantage
  Home Loan.
• Not a second lien and borrowers never have to
  repay the assistance.

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Future of the Oregon Bond Program

• We will continue to be a source of funding to
  promote homeownership, with a reduced interest
  rate, for first-time buyers, just as we have
  since 1978.
• While we cannot guarantee the interest rate or
  volume of loans our program can handle in any
  given year (since we are dependent upon selling
  mortgage revenue bonds) we will be here to serve,
  because
• What we do matters!

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Where can I get more information about the Oregon
Bond Loan?

• Visit www.oregonbond.us.
• Call toll free at 1-877-ST8-BOND!
• Work with a local lender listed on our website.
• Work closely with the staff at the Regional
  Housing Center!

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Any Questions?Thank You!