Housing Services:
Ownership Through Partnership JumpStart Loan

Features/Benefits

The Ownership Through Partnership (OTP) is a public private-partnership with the Portland Development Commission (PDC) and Participating Lenders to help low and moderate income households buy their first home in most of Portland’s Urban Renewal Areas. The JumpStart Loan helps a client increase their purchasing power by temporarily subsidizing their house payment and to establish a Home Improvement Fund. Borrowers access this homebuyer assistance from a PDC approved Participating Lender. JumpStart is a deferred payment silent second mortgage. JumpStart funds must be used for the purchase of a single-family owner occupied residence. JumpStart temporarily buys down the interest rate of the approved first mortgage. The buydown assistance starts at 2.00 percent for the first year and incrementally increases, based on need, to the established mortgage rate within two to eight years if needed. This reduces the borrower’s monthly mortgage payment during this period thus increasing their ability to purchase a home.

Target Market

Low and moderate income first-time homebuyers with income growth potential or others with an increasing ability to afford annual house payment adjustments.

Eligibility Requirements

Eligible First Mortgage Lender

First mortgage loan must be originated by a PDC-approved Participating Lender.
First mortgage products may be the Oregon Bond loan or other fixed rate loan programs and fee structures approved by PDC.
Participating Lender must sign a lender agreement with PDC and complete required training prior to originating an OTP loan.

Eligible Homebuyer

Must be a first-time homebuyer, defined as not having owned a home within the past three years.
Total gross household income, cannot exceed 80% or 100% of current HUD Median Family Income (MFI) as adjusted for family size and the number of bedrooms in the homes as follows:

Household Size	Two or less Bedrooms 80% MFI (2007)*	Three or more Bedrooms 100% MFI (2007)*
1	$38,000	$46,850
2	$43,450	$53,500
3	$48,900	$60,200
4	$54,300	$66,900

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

Owner must occupy the property as their primary principal residence for the entire term of the OTP loan.
Must be a US citizen or legal resident.
Must obtain a first mortgage from a PDC or a PDC-approved Participating Lender.
Must meet PDC’s and the Participating Lender’s minimum credit and underwriting standards.
Homebuyer’s combined liquid assets (cash and equivalent, stocks, bonds and bank deposit; excludes retirement accounts) after closing cannot exceed six months of PITIMI payments.
Borrower 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 PDC’s Urban Renewal Areas, go here.
Single-family one 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

4.00% simple interest per year with an Annual Percentage Rate of 4.30% (assumes a loan amount of $25,000).
15 year loan term.
Maximum loan amount up to $25,000. A minimum of 20 percent of the JumpStart Loan must be used to establish a Home Improvement Fund (see below).
Payment is deferred until sale, refinance, or no longer owner-occupied.
Forgiven once the term expires provided the borrower has maintained the property as owner occupied for the life of the loan.
Maximum 105% Combined Loan-To-Value based upon the lesser of the purchase price or the “as is” appraised value.
May be assumed by a qualified homebuyer who meets current qualifi cation criteria.
Subordination is permitted for future refi nancing and equity loans so long as the outstanding balance, plus all accrued and unpaid interest on PDC’s loan does not exceed 100 percent loan to value.
PDC charges a 1% loan origination and a $350 construction management fee. Other required third party fees also apply.

Home Improvement Fund

A minimum of 25 percent of the JumpStart Loan must be deposited into a PDC-controlled Home Improvement Fund. All Home Improvements Funds must be used within 24 months of loan closing.

For more information call Jon Gail or Javier Mena at 503-823-3200.