Thursday, August 20, 2015

ORVET Down Payment Assistance

The Oregon Department of Veteran Affairs has added a Down Payment Assistance (DPA) program to be used in conjunction with the newer ORVET Plus Home Loan or the standard loan program. According to the bulletin put out by ODVA, "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." Down Payment Assistance programs had been readily available prior to the Mortgage Meltdown but dried up after lenders tightens up the guidelines on lending. With the housing market now stabilized lenders and consumers alike are happy to see the return of these type of programs. ORVET is a unique loan program (QVMB) offered to qualified Veterans within the state and the addition of both the Plus and DPA gives Oregon Veterans yet another edge to first-time homeowners looking to get their foot in the door. 

  • No ownership within the previous 3 years.
  • Homebuyer's Education to be competed prior to loan submission
  • Income limits by county
  • Max assistance available $15,000
  • Gift funds may be combined for down payment and/or closing costs.
  • Rate .25% above our standard OrVet Home Loan rates if used for down payment only
  • Rate .375% above standard rate if used for both down payment and closing costs
  • Allowed on OrVet 95%, OrVet 97%, or OrVet Plus home loan program as qualified
  • First mortgage funding must be made from Qualified Veteran Mortgage Bonds (QVMB)
  • Discharge date must be within 25 years from the date the loan is made.

Keep in mind there are other low down financing options such as the (Federal) VA Loan for qualified Veterans, USDA Rural as eligible, FHA, or Conventional with private mortgage insurance that may be a better fit. A side by side comparison will guide you in choosing the right home loan based on your individual needs and goals. If you would like more information or to apply for any of these loan products contact me today!

Additional Resources:

ODVA Bulletin


ORVET DPA Guidelines

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