Nationwide first-time homebuyer programs
To get a “conventional” loan — that is, one sourced directly through the private market — you’ll often need a credit score of at least 620 and a down payment of at least 5% of the purchase price.
More: Use these savings accounts to build up your down payment.
That’s tough enough for first-time buyers, but if your down payment falls under 20%, you’ll also have to pay for pricey mortgage insurance.
Many Americans entering the real estate market for the first time will find it easier to use one of these nonconventional mortgages offered by the federal government.
In 1934, following the Great Depression, the Federal Housing Administration created FHA loans to help more Americans become homeowners. At the time, the U.S. was a country of mostly renters.
Securing an FHA loan is less difficult than a conventional mortgage. Your credit score typically only has to be 580, and your down payment can be as low as 3.5% of the purchase price. But you may still be expected to pay additional fees for mortgage insurance depending on how much money you put down.
The FHA's Loan Requirements Explained.
A walkthrough of how to meet the FHA's requirements.See Guide
Toward the end of the Second World War, Congress passed an act to increase benefits for its many veterans. That act made it possible for the U.S. Department of Veterans Affairs (VA) to guarantee or insure home, farm and business loans made to veterans by lending institutions.
These loans are available to active service members, veterans or surviving military spouses. VA loans don’t require down payments or mortgage insurance, though they do have a significant funding fee.
USDA loans are guaranteed by the United States Department of Agriculture to help lower-income rural and suburban Americans buy a home. Like VA loans, they also don’t require down payments or mortgage insurance.
When you take out one of these loans, you will face an upfront 1% guarantee fee and an annual 0.35% fee. However, these fees usually end up costing less in the long run than the mortgage insurance costs associated with other types of loans.
Sounds enticing, but remember that USDA loans are limited to lower-income Americans. The current income limits in most parts of the U.S. are $86,850 for one- to four-member households and $114,650 for five- to eight-member households, but the thresholds may be higher if you live in a county with a high cost of living. You can find your region’s limit on the USDA’s website.
Who qualifies for OHCS and other down payment assistance programs in Oregon?
With below-market-rate financing and cash assistance through the Oregon Bond Residential Loan Program, OHCS makes it possible for more Oregonians to become homeowners.
To qualify, you’ll need to be a first-time homebuyer. Included in OHCS’s definition of first-time buyers are individuals who haven’t owned a home in the last three years.
You may have to contribute some of your own funds for your down payment. Depending on which loan program you use, the amount ranges from 0% to 3.5%.
More: Get a free credit score and credit monitoring from Credit Sesame.
First-time home buyer programs in Oregon
For first-time buyers, OHCS offers the Oregon Bond Residential Loan program. You get a choice between a lower interest rate or a grant you can use for your down payment and closing costs.
Working with one of OHCS’s participating mortgage lenders, qualified applicants can get the help they need to afford a quality home of their own.
Oregon Bond Residential Loan Program: Rate Advantage
The Rate Advantage stream offers competitive, 30-year fixed rates designed to help homebuyers lower their monthly mortgage payments.
The program is compatible with conventional, FHA, VA and USDA loans obtained through your participating lender.
Oregon Bond Residential Loan Program: Cash Advantage
This program offers borrowers solid interest rates on their mortgage, as well as assistance grants of up to 3% of their loan amount. You can use the cash assistance to cover your down payment and closing costs.
You can apply for this program with a conventional, FHA, VA or USDA loan. OHCS only stipulates that you can’t use the grant to cover the minimum investment required with an FHA loan.
Oregon Down Payment Assistance
OHCS also provides funding to a number of community organizations — like Habitat for Humanity or the African American Alliance for Homeownership — to support their own down payment assistance programs.
Each organization will have its own terms and conditions. In addition, you’ll have to complete a homebuyer education program and recommended coaching from the organization.
Through this method, you can qualify for up to $15,000 to cover your down payment and closing costs. But even with down payment assistance, you’ll still have to contribute at least $1,000 of your own funds.
The Best Lenders for a MortgageClick Here
Now you have all the information, but it might not be clear what you should do first.
Ideally, before you start the home loan process, you’ll have a good idea of how much you can afford and where your credit score stands.
Don’t know your score? You can get a free look through the site Credit Sesame. If you discover your credit’s not doing so well, you might want to use the services of a credit repair organisation like Self to bring your score up.
Once you’re in a better position, you’ll want to gather all of your critical documents so you can show you have some cash on hand and money flowing in.
Then you can finally get preapproved for a mortgage, check out some listings and start making your Oregon dreams come true.
Support for new homebuyers in other states
|Arizona Department of Housing (ADOH)||Read More|
|Arkansas Development Finance Authority (ADFA)||Read More|
|California Housing Finance Agency (CalHFA)||Read More|
|Colorado Housing and Finance Agency (CHFA)||Read More|
|Connecticut Housing Finance Authority (CHFA)||Read More|
|Delaware State Housing Authority (DSHA)||Read More|
|Florida Housing Finance Corp. (Florida Housing)||Read More|
|Georgia Dream||Read More|
|Hawaii Housing and Finance Development Corporation (HHFDC)||Read More|
|Idaho Housing and Finance Association||Read More|
|Illinois Housing Development Authority (IHDA)||Read More|
|Indiana Housing and Community Development Authority (IHCDA)||Read More|
|Iowa Finance Authority (IFA)||Read More|
|Kansas Housing Resources Corporation||Read More|
|Kentucky Housing Corporation (KHC)||Read More|
|Louisiana Housing Corporation (LHC)||Read More|
|MassHousing (Massachusetts)||Read More|
|Michigan State Housing Development Authority (MSHDA)||Read More|
|Minnesota Housing||Read More|
|Missouri Housing Development Commission (MHDC)||Read More|
|Montana Board of Housing (MBOH)||Read More|
|Nebraska Investment Finance Authority (NIFA)||Read More|
|Nevada Housing Division||Read More|
|New Mexico Mortgage Finance Authority (MFA)||Read More|
|State of New York Mortgage Agency (SONYMA)||Read More|
|North Carolina Housing Finance Agency (NCHFA)||Read More|
|Ohio Housing Finance Agency (OHFA)||Read More|
|Oklahoma Housing Finance Agency (OHFA)||Read More|
|Oregon Housing and Community Services (OHCS)||Read More|
|Pennsylvania Housing Finance Agency (PHFA)||Read More|
|South Dakota Housing Development Authority (SDHDA)||Read More|
|Tennessee Housing Development Authority (THDA)||Read More|
|Texas Department of Housing and Community Affairs (TDHCA)||Read More|
|Utah Housing Corp||Read More|
|Virginia Housing||Read More|
|Washington State Housing Finance Commission (WSHFC)||Read More|
|Wisconsin Housing and Economic Development Authority (WHEDA)||Read More|
|Wyoming Community Development Authority (WCDA)||Read More|
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