Current through Register Vol. 63, No. 9, September 1, 2024
(1) To be
eligible to receive a Program Loan, an Eligible Borrower shall, on the date of
application:
(a) Be a resident of Oregon,
and, unless otherwise approved by the Department, a resident of a Reinvestment
Neighborhood designated by the relevant Participating Local Government, or a
resident of a Target Area;
(b) Be a
person whose total household Income does not exceed the lesser of:
(A) Median family income in the area where
the housing is to be provided, as established by the Department pursuant to the
Act; or
(B) The maximum established
by the relevant Participating Local Government for Eligible Borrowers residing
in a Reinvestment Neighborhood.
(c) Possess the legal capacity to incur the
obligations of the Program Loan;
(d) Have a credit standing acceptable to the
Department;
(e) Have at least a
one-third interest in one of the following types of ownership in the property
to be improved:
(A) A fee title;
(B) A life estate;
(C) A fee title or life estate subject to a
mortgage, deed of trust, or other lien securing a debt; or
(D) A mutually binding contract for the
purchase of the property where the Borrower is rightfully in possession and has
the benefits and burdens of ownership of the property, and the purchase price
of which is payable in installments.
(f) Agree to occupy the property to be
improved as a principal residence by the date of completion of the improvements
or 60 days from the date of the note, whichever is earlier;
(g) Meet requirements established by
Section 143 of the Internal Revenue Code of 1986, as
amended, which requirements are described in OAR
813-070-0065; and
(h) Not have a prior outstanding Program
Loan.
(2) Applications
for Program Loans shall be made on forms prepared or approved by the
Department. Approved Lenders shall provide such forms to prospective applicants
and take normal and appropriate measures to verify the information given.
Subject to the provisions of OAR
813-070-0050 regarding refusals
of Program Loans, the Approved Lender shall determine qualifications of an
applicant as an Eligible Borrower.
(3) The acceptability of the applicant's
credit standing shall be determined 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;
(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 or equity in real property;
(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: The publication(s) referred to or incorporated
by reference in this rule are available from the
agency.
Stat. Auth.: ORS
90.800 - ORS
90.840, ORS
91.886, ORS 183, ORS
456.515 - ORS
456.723 & ORS
458.210 - ORS
458.650
Stats. Implemented: ORS
456.690
