ORVET Home Loan Program releases a Down Payment Assistance Program

In our continuing efforts to bring innovative home loan products to meet the needs of our Oregon veterans, the OrVet Home Loan Program today releases a new Down Payment Assistance program. This DPA program is designed to target eligible first-time veteran homebuyers that need financial assistance to acquire their first home. In the past, newer-discharged veterans that did not have time to accumulate funds to meet down payment requirements were not able to enjoy the benefits of the OrVet Home Loan program. Now, by using OrVet Down Payment Assistance funding, Oregon veterans can access up to $15,000 to meet down payment and closing costs. By accessing the DPA funds, coupled with the recently released OrVet Plus 97% LTV loan, or the 95% program, veterans can obtain the dream of homeownership with little to no cash out of pocket.

Some highlights and requirements of the DPA program are:

• First-time homeowners or no ownership within the previous 3 years.
• Completion of a Homebuyer's Education class from a HUD-approved counseling agency prior to loan submission;
• Total household income cannot exceed 80% of the area median income of the Metropolitan Statistical area or county of the subject property;
• Maximum amount of DPA funds are $15,000;
• Certain limits in the amounts of verified liquid assets;
• Gift funds allowed to supplement down payment and/or closing costs in excess of DPA;
• The Note rate will be .25% above our standard OrVet Home Loan rates if the veteran uses the DPA funds for down payment only; .375% above standard rate if funds used for both down payment and closing costs.
• Can be used in conjunction with the OrVet 95% home loan program or the OrVet 97% OrVet Plus home loan program. All program requirements of the underlying loan must be met in addition to the program requirements of the DPA program.
• First mortgage funding must be made from Qualified Veteran Mortgage Bonds (QVMB). Qualified veterans discharge date may be no further than 25 years from the date of loan funding.

This program is intended to serve Oregon veterans that are truly in need of down payment assistance. ODVA will be monitoring loan submissions where the borrower is attempting to access DPA funding when the borrower otherwise has adequate funds to meet the down payment requirements. Please be sure that loans being submitted are for Oregon veterans that truly are the intended target for this program.