Housing Services:
PDC Oregon Bond Loan

Features/Benefits

If you're considering buying a home that needs some renovation - like updates to the kitchen, bathroom or roof repairs - the Portland Development Commission (PDC) can help. PDC's Oregon Bond Loan allows you to purchase a home and finance the renovation work in a single loan!

PDC's Neighborhood Housing Program (NHP) has partnered with Oregon Housing and Community Services, a state agency, to offer the Oregon Bond loan for first-time buyers. A key feature of the Oregon Bond Loan is its lower-than-market interest rate, which increases your purchasing power.

PDC specializes in offering the Oregon Bond Loan combined with renovation funds to help you buy and make improvements to a home of your own. In addition, a PDC construction specialist is assigned to you during the renovation process to ensure all the improvements are completed properly and in a timely manner.

Eligibility Requirements

Eligible Homebuyer

First-time homebuyer (defi ned as not having owned a home in the past three years)
Must have a minimum of 3% for down payment

Annual household income at or below the State's guidelines according to areas as follows:

	Non-Targeted Areas	* Target Areas
1-2 Persons	$79,190	$81,480
3 or more persons	$91,068	$95,060

Must meet standard fi rst mortgage criteria for credit and down payment
Must complete an approved homebuyer education class

Eligible Property

Must be located within the Portland city limits
Must be owner-occupied during the life of the loan
Single-family units only, including condos and town homes
Maximum purchase price - $361,125 city-wide, $441,375 in * Target Areas

Loan Terms

Below-market interest rate; option of the RateAdvantage or the CashAdvantage, which allow the lender to fi nance up to 3% of the closing costs
Minimum down payment requirement - 3% of the total acquisition costs
Appraisal performed based on an "after-improved" value of the property
Maximum loan-to-value (LTV) - 97%; the appraisal must support the total of the purchase price plus the cost of improvements
Private mortgage insurance (PMI) required on loans with LTV above 80%
Renovation amount determined by actual bids/cost estimates; minimum renovation amount is $5,000
Property improvements must address code violations; most permanent improvements and repairs qualify
Work must be completed within six months of signing loan documents
A PDC construction specialist is assigned to every loan to ensure all improvements are completed properly and in a timely manner

* Target Areas

OHCS has identifi ed certain areas of Portland as "Target Areas" according to federal census tracts. In these specifi c census tracts, the program's fi rst-time homebuyer requirement is waived, there are higher household income limits, and higher purchase price limits. For more information, call PDC or visit www.oregonbond.us for details.

Oregon Bond Disclosure

The Oregon Bond Loan includes a federal Recapture Tax provision that is applicable if the property is sold within the fi rst nine years of ownership, but only if the owner's income has increased above the State's income limitation at that time.

For more information call 503-823-3400, e-mail.