OAR 274-045-0060
Terms of Loan


(1)

The maximum amount allowed for a loan may not exceed the least of:

(a)

The maximum original principal balance permitted on a single-family first mortgage loan by the Federal Housing Finance Agency.

(b)

The maximum loan-to-value ratio or combined loan-to-value ratio permitted by the United States Department of Veterans’ Affairs for its Home Loan Guaranty Program (38 U.S.C 3701 et seq.; 38 C.F.R part 36).

(2)

When calculating the maximum amount allowed for a loan, the Department of Veterans’ Affairs shall exclude:

(a)

Funds disbursed under ORS 407.145 (Purchase and control of property) (2) and 407.275 (Terms of loan to veteran and transferee) (4); and

(b)

The amount of a loan that has been repaid, or for which the property securing the loan has been transferred by deed or otherwise, if the property is destroyed by fire of other natural hazard; or is taken through condemnation of lost or disposed of for a compelling reason devoid of fault on part of the applicant.

(3)

An eligible person may not receive or, under ORS 407.305 (Assumption of previous loan by eligible veteran), assume more than four loans. The borrower shall not receive any cash back from the ODVA loan.

(4)

The Director shall determine the period and amount of repayment based on the age, condition, location, and useful life of the security, but the maximum period of repayment shall not exceed statutory limits.

(a)

Loans shall be made in multiples of one dollar ($1.00).

(b)

Each program loan shall have a final maturity of at least 15 and not more than 40 years from the date of purchase.

(c)

A loan may be amortized over a period of not more than 40 years for a home other than a manufactured home. A loan for a manufactured home may be amortized over a period not exceeding the expected life of the manufactured home, as determined by the Department of Veterans’ Affairs. The limitations do not preclude the department from later extending the amortization period.

(5)

The borrower shall timely pay all property taxes and other assessments that may or do become a lien against the loan security.

(6)

The borrower shall carry hazard insurance on the security. The Director may also require that hazards other than fire be covered. All premiums and charges for said coverage shall be timely paid by the borrower, and

(a)

The Director may determine the form and amount of insurance coverage;

(b)

All insurance claims money shall be payable to ODVA under a provision in the mortgage or trust deed;

(c)

In the event of failure to maintain coverage, the Director may acquire the necessary coverage and collect amounts due in a manner consistent with the mortgage or trust deed documents; and

(d)

In case of loss, the Director shall determine the disposition of any and all funds received under claims submitted under the insurance policies.

(7)

The Director may collect in advance, unless otherwise agreed, from said borrowers together with their payments required under section (3) of this rule, sufficient amounts to pay property taxes, hazard insurance premiums, and other charges related to the security. Such additional amounts collected by the Director shall be held in escrow pending payment of the obligations for which they are collected and interest on said amounts shall be paid to the borrower in the manner and at the rate of interest described in ORS 87.245(1).

(8)

The Director may pay property taxes, hazard insurance premiums and other charges from funds collected from the borrower for those purposes. The Director, in the absence of funds collected from the borrower (or if such funds are insufficient in amount), may elect to pay property taxes, hazard insurance premiums, and other charges. Any amount paid by the Director may be collected in the manner consistent with the security documents or other manner agreeable to the Director and borrower. The Director will not add amounts advanced for payment of property taxes or hazard insurance premiums to the principal balance of the loan. On these loans, any amount advanced will be entered as a negative balance in the escrow account.

(9)

The borrower’s loan payment may be increased to repay the money advanced to pay the property taxes, hazard insurance premiums, and other charges against the security, together with interest thereon, within a maximum period of 12 months or such shorter time as established by the Director.

(10)

No borrower is entitled to borrow more than the maximum amount allowed under ORS 407.215 (Certain loans excludable from maximum loan amount) other than for reasons specified in ORS 407.205 (Application for loan) except that when the property on which the loan was made becomes the property of the applicant’s spouse as a result of a judgment declaring a marriage void or dissolved and the loan is repaid, the loan may be excluded from consideration in computing the maximum loan allowable under ORS 407.205 (Application for loan).
274–045–0001
Definitions for OAR 274-045-0001 to 274-045-0481
274–045–0005
Purpose and Objectives
274–045–0010
Eligibility Requirements
274–045–0015
Authority to Protect the Security
274–045–0020
Who May Apply for Loan
274–045–0025
Evidence Required to Establish Eligibility
274–045–0030
Modification of Application
274–045–0035
Cancellation of Application
274–045–0040
Security for the Loan
274–045–0045
Legal Description of Property Offered as Security
274–045–0050
Appraisal of Property
274–045–0060
Terms of Loan
274–045–0070
Interest
274–045–0080
Approval of the Loan
274–045–0085
Loan Funding
274–045–0090
Grounds for Refusing to Make a Loan
274–045–0100
Evidence of Title
274–045–0110
Escrow Closing of Loans
274–045–0120
Transfer of Ownership
274–045–0125
Rental
274–045–0130
Modification of Mortgage
274–045–0140
Temporary Reduction of Payments
274–045–0145
Loan Cancellation Life Insurance
274–045–0150
Property Tax Amortization and Escrow Accounting
274–045–0160
Partial Release of Security
274–045–0170
Confidential Nature of Information Submitted by the Borrower
274–045–0180
Confidential Nature of Information Procured by the Director
274–045–0190
Disclosure of Information and Fees
274–045–0200
Director’s Decisions Control in All Controversies
274–045–0205
Review of Loan Determinations and Other Decisions
274–045–0220
Fees
274–045–0230
Approved Lenders
274–045–0240
Loan Requirements
274–045–0250
Reservation of Funds and Commitments
274–045–0260
Title Insurance
274–045–0270
Hazard Insurance
274–045–0280
Flood Insurance
274–045–0401
Purpose and Objectives
274–045–0411
Definitions
274–045–0421
Interest Rate
274–045–0431
Approval of Veterans’ Home Improvement Loans
274–045–0441
Terms and Requirements of Veterans’ Home Improvement Loans
274–045–0451
Appraisal of Property
274–045–0461
Transfer of Ownership
274–045–0471
Taxes, Hazard Insurance and Flood Insurance
274–045–0481
Title Insurance
Last Updated

Jun. 8, 2021

Rule 274-045-0060’s source at or​.us