OAR 813-070-0025
Program Loans
(1)
To be eligible for purchase by the Department pursuant to a commitment to or agreement with an Approved Lender, a Program Loan shall be made by the Approved Lender during the term of the Program. The Program Loan shall comply with the terms of such commitment or agreement, the requirements set forth in the purchase agreement between the Department and the Approved Lender and the conditions set forth in the Program rules and the Program’s Procedural Guide.(2)
Intentionally left blank —Ed.(a)
Each Program Loan shall have a final maturity at least 24 months and not more than fifteen years and 32 days from the date of its making;(b)
The Program Loan shall be secured by a recorded deed of trust granted by the Eligible Borrower and any additional persons in title, on the Residential Dwelling for which improvements are being financed. Title shall be held by the Eligible Borrower in fee simple, life estate or under a contractual interest. Program Loans shall only be made to finance alterations, repairs or improve-ments which substantially protect or improve the basic livability or energy efficiency of a Residential Dwelling;(c)
Such Residential Dwelling shall be used as a permanent, primary residence of the Eligible Borrower; and(d)
No Program Loan shall be made to refinance an existing loan unless such loan was a temporary loan for the improvement of a Residential Dwelling. Such loan shall have been made during the commitment under which the Program Loan is sold to the Department.(3)
Each Program Loan shall:(a)
Be executed on forms approved by the Department;(b)
Be originated according to normal lending procedures;(c)
Meet the standards set forth in the Program rules; and(d)
Comply with applicable rules and regulations for Title I insurance.(4)
There shall be no penalties or charges for prepayment of a Program Loan.(5)
Interest on each Program Loan shall be at the rate stated in the applicable commitment. To establish the interest rate for Program Loans, the Department shall consider the rates of interest on the Bonds, prevailing rates for similar loans and the ability of Eligible Borrowers to afford such rates. The Department shall also take into account the community development objectives of the Participating Local Governments. Interest or other charges established for any Program Loan shall not exceed the limits imposed by any applicable usury laws.(6)
The principal amount of a Program Loan shall not exceed $15,000.
Source:
Rule 813-070-0025 — Program Loans, https://secure.sos.state.or.us/oard/view.action?ruleNumber=813-070-0025.