Housing Services:
JumpStart

Features/Benefits

JumpStart is a tool to help first-time homebuyers increase their buying power by temporarily lowering the payment on their first mortgage. This enables them to purchase and renovate a home today that they might otherwise have to delay because the payments are just a little beyond their reach.

JumpStart is a second mortgage loan which may be used in combination with a first mortgage loan from PDC. PDC deposits the proceeds from the JumpStart loan into a secured account with the loan servicer. Each month, money is withdrawn from this account and added to the borrower’s temporarily-reduced mortgage payment to make the full payment on the first mortgage. JumpStart’s monthly payment assistance is usually spread over a four year period, but in special cases it may be offered over as much as an eight year period if needed.

The following is an example of JumpStart is based on a four year period. Accordingly, during the first year, the interest rate on the first mortgage is reduced by 2.00%. In year two, the reduction equals 1.50%; 1.00% in year three; and 0.50% in year four. At the start of the fifth year, the borrower begins making the full payment on the first mortgage. Because the amount the borrower pays gradually increases over time, JumpStart is intended for buyers that can demonstrate increased income earning potential.

Eligibility Requirements

Eligible Homebuyer

First-time homebuyer (defined as not having owned a home in the past three years)
Owner-occupied residences only
Gross annual household income at or below 80% or 100% of Portland’s Median Family Income (MFI), adjusted for family size and the number of bedrooms in the home as follows:

Household Size	80% MFI (2008)*	100% MFI (2008)*
1	$38,000	$47,250
2	$43,450	$54,000
3	$48,900	$60,750
4	$54,300	$67,500

*Higher household income limits apply for households of five or more persons

Must meet standard first mortgage criteria for credit and down payment
Combined liquid assets (cash and equivalent, stocks, bonds and bank deposit; excluding retirement accounts) cannot exceed six months of PITIMI payments at closing
Must be a US citizen or legal resident
Must complete a homebuyer education workshop provided by a US Department of Housing and Urban Development (HUD) Certified Home Buyer Counseling Program

Eligible Property

Residential property located within a PDC Urban Renewal Area subject to available funding. For a map of these areas, go here
Single-family units only, including condos and town homes
Maximum purchase price not greater then the Federal Housing Authority (FHA) maximum loan amount, currently $304,950

Loan Terms

15-year term forgiven once the term expires provided the borrower has maintained the property as owner occupied for the life of the loan
4.00% interest per year with an Annual Percentage Rate of 4.30% (assumes a loan amount of $25,000)
Maximum loan amount, $25,000
Payments are deferred until sale, refinance, or no longer owner-occupied
$350 loan origination fee; $350 construction management fee; other necessary third party fees also apply

The borrower has two options for renovations:

To complete the required renovation the borrower has to choose between:

Immediate Renovations – A minimum 25% of the JumpStart Loan funds are deposited in PDC controlled escrow account; improvements made within six months of closing; appraisal based on an “after-improved” value; maximum Combined Loan-To-Value of 100%

Home Improvement Fund - A minimum of 25% of the JumpStart Loan funds are deposited into a PDC controlled Home Improvement Fund; all home improvement funds must be spent within 24 months of loan closing; appraisal based on an “as is” value; maximum Combined Loan-To-Value of 105%

For more information call 503-823-3400, e-mail nhp@pdc.us.