Current through Register Vol. 63, No. 9, September 1, 2024
(1) A
person is eligible to receive a loan under the Single Family Mortgage Program
if, on the dates of application and loan closing:
(a) The total of the annualized gross
household income, from any source and before taxes and withholding, of all
non-minor persons who will reside in the single family residence to which the
loan applies does not exceed the applicable income limit established by the
Department and by the Internal Revenue Code of 1986, as amended;
(b) The person:
(A) Is a resident or intends to be a resident
of Oregon;
(B) In good faith
intends to occupy the single-family residence as a permanent principal
residence;
(C) Possesses the legal
capacity to incur the obligations of the program loan;
(D) Has a credit standing acceptable to the
Department;
(E) Agrees that any
other residential property owned by the person will be sold by the time of
closing; and
(F) Meets applicable
requirements established by Section
143 of the Internal Revenue Code
of 1986, as amended and as described in OAR
813-020-0070, if the program
loan is to be made from the proceeds of bonds sold after September 15,
1982.
(2) A
loan under the program is also subject to the following provisions:
(a) The application for the loan must be
processed according to the rules of this division;
(b) The acquisition cost may not exceed the
limit established by the Department and in effect when the loan application is
made; and
(c) An applicant for a
loan may not have held a present ownership interest in a principal residence at
any time within the three years immediately preceding the date of the loan
application unless the residence is located within a targeted area as
designated under OAR 813-020-0070.
(3) Subject to OAR
813-020-0045 regarding a
lender's refusal of a program loan, a lender shall determine the applicant's
qualifications to be a borrower under the program.
(4) If a program loan is insured by the
Federal Housing Administration or a Qualified Mortgage Insurer or guaranteed by
the Veterans' Administration or USDA Rural Development, the Department
authorizes the lender to accept approval by such a federal agency or a
qualified mortgage insurer as satisfactory evidence of the creditworthiness of
the applicant. In all other instances, a lender must determine the
acceptability of the applicant's credit standing after thoroughly evaluating
the applicant's credit, taking into account such factors as:
(a) The ratio between the applicant's stable
monthly income and estimated housing expenses, including repayment of the
program loan and any secondary housing debt financing;
(b) The ratio between the applicant's stable
monthly income and the estimated monthly payments on all indebtedness of the
applicant, including the program loan;
(c) The applicant's ability to accumulate
wealth, including funds needed for down payment and closing costs on the
program loan;
(d) The history of
the applicant's previous ability to meet debt service requirements;
and
(e) Any other factors commonly
considered by prudent institutional mortgage investors, such as prior
bankruptcy of the applicant, history of slow payments on previous obligations,
job tenure, frequent changes of residence and the existence of lawsuits,
judgments or foreclosures involving the applicant.
Publications: Publications referenced are available from the
agency.
Stat. Auth.: ORS
456.555
Stats. Implemented: ORS
456.620,
456.625,
456.635 &
456.640
