Oregon Housing and Community Services What we do matters!

1. Oregon Housing and Community ServicesWhat we do matters! Homeownership Section Phone: 877-788-2663 www.oregonbond.us

2. Oregon Housing and Community Services • Oregon’s State Housing Finance Agency (HFA). • Assist non-profit and for profit developers finance affordable multi-family housing in Oregon. • Administer federal housing & anti-poverty programs in partnership with a variety of agencies. • Sell tax-exempt bonds to purchase single-family loans and finance multi-family housing projects. • Home of the “Oregon Bond Home Loan” (also known as the Residential Loan Program or Single Family Mortgage Program). • A main sponsor of the Regional Housing Centers.

3. 2008 Borrowers • Served 1,598 households. • 98.34% served were first-time homebuyers. • Average household income was $50,423. • Average loan size in 2008 increased by 7.98% to $177,617. • Average borrower age was 34.68. • Average household size was 2.19 persons. • Newly constructed homes were 13% of the total.

4. Income & Race & Ethnicity • 2008 22.5% of loans were to households less than 80% Median Family Income • 2008 Race: 1.80% American Indian; 2.02% Asian; 1.87% African American; .36% Pacific Islander • 2008 Ethnicity: 9.50% Hispanic

5. Historical • Since program inception, we have purchased nearly 34,000 loans for over $2.6 Billion. • Currently we have a portfolio of 7,780 loans for $956,006,222.

6. Interest Rate Comparison - 2008

7. Benefits • Provide first-time borrowers access to an on-going supply of below market rate home loans to promote homeownership. • Serve more borrowers by increasing their purchasing power. • Generous with rate lock, allowing 120 days, with the possibility of one 60 day extension and no lock fees. No need to worry about rates going up! • OHCS has a history of working well with lending partners.

8. Borrower Qualifications • First-time homebuyers: May not have owned and occupied a Primary Residence in the last three years unless purchasing in a Targeted Area. • Must occupy the property as a Primary Residence. • Income limits apply (higher limits for Targeted Areas).

10. Eligible Properties • Single-family dwellings (1 unit only) in Oregon. • Purchase price must not exceed applicable limits (higher limits for Targeted Areas). • All types of single-family homes qualify, including condominiums, except for manufactured homes on leased/rented land. • Must also comply with Mortgage Insurance property requirements such as FHA Minimum Property Standards.

11. Oregon Bond Purchase Price Limits CountyNon-Targeted AreaTargeted Area • Benton $303,750 NA • Clackamas $376,875 NA • Clatsop NA $382,250 • Columbia $376,875 $460,625 • Curry $316,125 $386,375 • Deschutes $402,750 NA • Hood River $354,375 NA • Jackson $380,250 $464,750 • Josephine NA $357,500 • Lane $309,375 $378,125 • Lincoln $281,250 NA • Marion $265,500 $324,500 • Multnomah $376,875 $460,625 • Polk $265,500 NA • Tillamook $309,375 NA • Washington $376,875 NA • Yamhill $376,875 NA • All Other Counties $243,945 $298,155

12. Other Requirements • Must meet applicable mortgage insurance requirements or other lender requirements. • Bankruptcy must be discharged at least two years prior to closing the program loan. • Foreclosure or deed-in-lieu of foreclosure must be at least five years prior to closing the program loan. • Lender must approve loan as a fully documented, conforming loan of A or A- quality. No Subprime Bond loans!

13. Program Compatibility • Compatible with FHA, USDA Rural Development (Guaranteed Rural Loans), and Conventional Uninsured Loans with 80% LTV. • May be used with all types of secondary loan products, gifts, equity gifts, and other Downpayment Assistance Programs (subject to mortgage insurer approval).

14. Fees • Combined Loan Origination & Discount Fee may not exceed 1.75% of the loan amount. • Total of the Document Preparation, Processing, Underwriting or other similar fees may not exceed $490 (or what is reasonable and customary). • If a mortgage Broker is involved in the transaction, they can also charge up to the $490 (or what is reasonable and customary) other fee limit. • Other standard third party fees that are usual and customary are acceptable.

15. IRS Recapture Tax • The purpose is to assure the lower rate benefits low to moderate income families. • It is possible a borrower could pay a Federal Income Tax if: • Home is sold within the first nine years of ownership, and • Borrower makes a profit on the sale of the home, • And,tax is only applicable if borrowers’ income during year of sale exceeds an income threshold which is significantly higher than the current income limit. Therefore most borrowers do not have a recapture tax liability. • In no case would the tax ever exceed 6.25% of the original loan amount (worst case scenario) but is significantly reduced if the home is sold in any year other than the fifth year of ownership.

16. CashAdvantage Home Loan • Grants 3% Cash Assistance to pay closing costs, pre-paids or down payment. • Interest rate is higher than the RateAdvantage Home Loan. • Not a second lien and borrowers never have to repay the assistance.

17. Future of the Oregon Bond Program • We will continue to be a source of funding to promote homeownership, with a reduced interest rate, for first-time buyers, just as we have since 1978. • While we cannot guarantee the interest rate or volume of loans our program can handle in any given year (since we are dependent upon selling mortgage revenue bonds) we will be here to serve, because: What we do matters!

18. Where can I get more information about the Oregon Bond Loan? • Visit www.oregonbond.us. • Call toll free at 1-877-ST8-BOND! • Work with a local lender listed on our website. • Work closely with the staff at the Regional Housing Center!

19. Any Questions?Thank You! 07/15/2011