OAR 813-020-0022
Eligible Borrowers
(1)
A person is eligible to receive a loan under the Single Family Mortgage Program if, on the dates of application and loan closing:(a)
The total of the annualized gross household income, from any source and before taxes and withholding, of all non-minor persons who will reside in the single family residence to which the loan applies does not exceed the applicable income limit established by the Department and by the Internal Revenue Code of 1986, as amended;(b)
The person:(A)
Is a resident or intends to be a resident of Oregon;(B)
In good faith intends to occupy the single-family residence as a permanent principal residence;(C)
Possesses the legal capacity to incur the obligations of the program loan;(D)
Has a credit standing acceptable to the Department;(E)
Agrees that any other residential property owned by the person will be sold by the time of closing; and(F)
Meets applicable requirements established by Section 143 of the Internal Revenue Code of 1986, as amended and as described in OAR 813-020-0070 (Federal Eligibility Requirements), if the program loan is to be made from the proceeds of bonds sold after September 15, 1982.(2)
A loan under the program is also subject to the following provisions:(a)
The application for the loan must be processed according to the rules of this division;(b)
The acquisition cost may not exceed the limit established by the Department and in effect when the loan application is made; and(c)
An applicant for a loan may not have held a present ownership interest in a principal residence at any time within the three years immediately preceding the date of the loan application unless the residence is located within a targeted area as designated under OAR 813-020-0070 (Federal Eligibility Requirements).(3)
Subject to OAR 813-020-0045 (Lender Action on Loan Application) regarding a lender’s refusal of a program loan, a lender shall determine the applicant’s qualifications to be a borrower under the program.(4)
If a program loan is insured by the Federal Housing Administration or a Qualified Mortgage Insurer or guaranteed by the Veterans’ Administration or USDA Rural Development, the Department authorizes the lender to accept approval by such a federal agency or a qualified mortgage insurer as satisfactory evidence of the creditworthiness of the applicant. In all other instances, a lender must determine the acceptability of the applicant’s credit standing after thoroughly evaluating the applicant’s credit, taking into account such factors as:(a)
The ratio between the applicant’s stable monthly income and estimated housing expenses, including repayment of the program loan and any secondary housing debt financing;(b)
The ratio between the applicant’s stable monthly income and the estimated monthly payments on all indebtedness of the applicant, including the program loan;(c)
The applicant’s ability to accumulate wealth, including funds needed for down payment and closing costs on the program loan;(d)
The history of the applicant’s previous ability to meet debt service requirements; and(e)
Any other factors commonly considered by prudent institutional mortgage investors, such as prior bankruptcy of the applicant, history of slow payments on previous obligations, job tenure, frequent changes of residence and the existence of lawsuits, judgments or foreclosures involving the applicant.
Source:
Rule 813-020-0022 — Eligible Borrowers, https://secure.sos.state.or.us/oard/view.action?ruleNumber=813-020-0022.