Moving to Oregon is a great idea anytime, but now is an especially exciting time to consider setting your roots in Oregon soil. The state’s unique geography attracts hundreds of thousands of visitors every year, who flock here to enjoy its wealth of amenities. The Pacific Ocean’s expansive, publicly owned beaches offer up deep sea and shoreline fishing, surfing, swimming and even whale watching. The “National Scenic Highway” through the Columbia Gorge offers spectacular scenery. The Cascade, Blue, and Wallowa Mountains offer every sort of sporting and recreation activity, and the Willamette Valley, running south from Portland to Eugene, is an internationally recognized wine region. There’s a lot to do in Oregon.
Industry is Encouraged
Oregon has shrugged off the Recession and is moving ahead with new economic developments in every region. Its friendly business climate frequently ranks in the top ten in the country for low business taxes and high state GDP. It is also expected to have some the highest job growth numbers in the country over the next few years. If you’re looking for work or seeking to open your own business, and you’re a first time home buyer Oregon offers incentives to assist you to do both affordably.
Home Buying Incentives
For lower income home buyers, Oregon offers a series of opportunities to reduce the costs associated with buying a house. The Oregon Bond Loan program connects purchasers within specific income brackets to home buying opportunities in regions across the state.
Eligibility Requirements
Three factors determine the eligibility of each buyer: Oregon residency, first time home ownership, and income level.
- An Oregon resident lives in the state more than six months of the year, has their primary home in Oregon, and intends to remain in Oregon. Proof of these facts can include vehicle registration, enrolling children in Oregon’s public schools and paying resident income taxes.
- Most qualifying “first time home buyers” would not have held ownership in a primary residence within three years of signing the new mortgage. The state waives this requirement when the house is in a targeted area, and the ownership of the first home os transferred before the new mortgage becomes effective.
- Qualifying income levels shift depending on where in the state you elect to buy. Oregon is actively seeking new residents in the lesser populated counties to the east and south. These “target area” communities allow eligible home buyers to have a higher annual income and still qualify for the program.
Loan Terms
Oregon Housing and Community Services (OHCS) manages these loans and finds funding for them through the Federal Housing Authority )FHA) and state-based programs. The Bond Loan program offers two loan types from which to choose:
- Rate Advantage – A below-market interest rate saves the homeowner thousands of dollars in interest over the life of the loan. The lower rate also means that monthly mortgage payments are easier to make, so the owner is less likely to default (fail to pay) on the loan. With this option, homeowners have more flexibility in the choices of home their buy. It also has no prepayment penalty, so homebuyers who can pay off the loan earlier than full term will not have to pay an additional fee for making that choice.
- Cash Advantage – Gathering the cash necessary for a down payment or to cover closing costs can be a deterrent for some prospective homebuyers. This option provides “cash assistance” of up to three percent of the loan amount to cover closing costs. The cash assistance is not part of the loan; it acts as a gift and does not require repayment. The interest rate on Cash Advantage loans is higher than it is on the Rate Advantage loans, but, for most qualifying buyers, the convenience of the reduced cash requirements more than makes up for that difference
Both loan types are available for 15- or 30-year terms, and can be taken on permanently located manufactured homes as well as stick-built houses. Those manufactured homes must be on lots owned by the borrower and carry a 30-year insurance policy. Fees for both loans will not exceed 1.75 percent of the loan amount.
Down Payment Assistance
Perhaps the best incentive to buy a home in Oregon is the Down Payment Assistance program. Qualifying homebuyers can access as much as $15,000 to cover the down payment or closing costs. To qualify, prospective buyers must complete a homeownership education program, which is provided by an Oregon Homeownership Center. The Centers are located in public and private facilities throughout the state and offer a variety of home-buying related services, including financial coaching, pre-purchase counseling, and even financial literacy courses. You can also access these courses online. The purpose of the education is to provide each qualifying new homeowner with the best possible opportunity to maintain and pay off the loan.
Other Housing Loan Options
Other government entities also offer incentives to settle within their boundaries. For example, Clackamas County offers a zero interest loan for down payment and closing costs (not a gift – borrowers will pay this money back). The U.S. Department of Agriculture offers 100 percent financing and no down payment requirements to buy properties in rural areas. The FHA provides loan options for single families, condominiums, and multi-unit properties and Fannie Mae will also help with low-interest loans. Certain professions and occupations can qualify for home-based financing options. Law enforcers, teachers, firefighters and healthcare workers are eligible for assistance through the Good Neighbor Next Door and Home Possible Neighborhood Solution programs. Veterans in Oregon can receive help from the Veteran’s Affairs office.
Oregon is a beautiful state, full of opportunity. Buying a home is the first step to fully embracing the Oregon lifestyle. With financing options like these, what’s stopping you from packing up and heading to Oregon today?
2 Point Highlight
If you’re looking for work or seeking to open your own business, and you’re a first time home buyer Oregon offers incentives to assist you to do both affordably.
Qualifying home buyers can access as much as $15,000 to cover the down payment or closing costs.
