Unlocking Homeownership: The Oregon Flex Lending Program

Are you hoping to buy your own home one day but struggling to navigate the financial obstacles of down payments and mortgage requirements? You’re not the only one! There are lots of hopeful homeowners facing similar challenges, but you do have options, especially if you’re in Oregon. The Oregon Housing and Community Services (OHCS) has created the Oregon Flex Lending program for lower-income Oregonians and at Eugene Mortgage Brokers, I’m able to offer this loan program to potential homebuyers in Oregon.

What is the Oregon Flex Lending Program?

The Oregon Flex Lending program was developed by the Oregon Housing and Community Services. It is an opportunity available to individuals and households that want to achieve homeownership. Unlike some traditional lending programs, this program is specifically made to enable lower-income Oregonians to achieve their homeownership dreams.

Who Qualifies for the Program?

Current eligibility requirements:

1. INCOME LIMIT: $125,000 is the maximum annual gross income for all borrowers that are included on the loan application.
2. OCCUPANCY: You must be a current resident or intended resident of Oregon, with the intention to occupy the property as your permanent principal residence.
3. CREDIT: A minimum credit score of 620 is needed for all borrowers.
4. PROPERTY OWNERSHIP: You can’t own any other residential property but non-occupant co-borrowers and non-occupant co-signers may own other property.
5.  DEBT: The maximum debt to income ratio (DTI) must not exceed 50%. DTI is all of your monthly debt payments added up and divided by your gross monthly income.

Key Features of the Program

Eligible Loan Types:

• FHA
• VA
• USDA
• Conventional

Eligible Property Types:

•  Single family dwellings
• Condos
• Townhomes
• PUD’s
• Manufactured homes

*Multi-unit properties or single-wide manufactured homes are not eligible.

Down Payment Assistance (DPA)

The Flex Lending Program offers Down Payment Assistance (DPA) to qualified borrowers. The DPA is 4-5% of the first loan amount. The funds can be used towards the down payment and closing costs.

Frequently Asked Questions (FAQs)

Does the DPA have to be paid back?

For households earning at or below 80% of the area median income (AMI), the down payment assistance (DPA) is provided as a second mortgage lien on the property. This lien requires no payments and accrues no interest. It is also forgiven after five years! For those with incomes above 80% AMI, the DPA is a repayable loan with monthly payments. When above 80% AMI, the interest rate is 1% higher than that of the first mortgage. Additional conditions may apply in both cases.

What can the DPA be used for?

The Flex Lending DPA funds can be used for up to 100% of your cash to close, including down payment, closing costs, pre-paid items, upfront borrower paid Mortgage Insurance and other related loan fees and expenses. Besides the earnest money deposit and prepaid items, you can’t receive cash back at close. Any unused DPA funds will be used towards the first mortgage loan principal. The Oregon Flex Lending DPA funds can even be combined with other DPA programs!

What type of properties are not eligible for the program?

Multiple-unit properties and single wide manufactured homes are not eligible.

What is the Flex Lending Program?

The program helps low to moderate income borrowers with down payment and closing cost assistance to purchase a home.

Do you have to be a first time home buyer to use the Flex Program?

No

What’s Next?

Are you ready to begin your journey to homeownership?  The Oregon Flex Lending Program may be the perfect option for you. Reach out and we can explore how to make your homeownership goals a reality!

Jasmine Hatmaker
Direct: 541-600-5300
Office: 541-972-8620
NMLS 2527591
Jasmine@EugeneBrokers.com
Apply Now!
www.EugeneMortgageBrokers.com