Oregon Mortgages

Put Err There "PAL"

Well in the middle of the so called “mortgage crisis” I feel that it is very important to be on top of program guidelines (even though they seem to change daily if not hourly) as well as programs that can assist buyers. Over the last 4-5 years it seems that people got lazy because they had the motto “If they have a pulse give them 100% financing!”

Those days are gone now it must make sense so to speak. Stating $10,000 a month for a baby sitter apparently won’t go through anymore. WHAT??? That is just nuts, they have a 730 fico! haha…sorry, i find that portion funny.

Anyways, programs are tougher to qualify for and that includes government programs that have gone through some recent changes. Now people, agents, loan officers…etc need to be a little more savvy with how they approach loans and the real estate world in general.

Oregon has a program that offers down payment assistance. It is known as the Purchase Assistance Loan (PAL) hence the title of the post. I thought it was a fun little knock off version of “Get err done” but hey, what do I know… The PAL program offers Low Income buyers a secondary loan to help with down payment. The loan is a 0% interest loan

• Up to a $10,000 loan for qualifying consumers
• The loan may be used for Closing Costs or a Down Payment
• 0% interest loan that doesn’t require ANY payment but must be paid off if the home is sold, title is transferred or a default happens
• Designed for low income borrowers
• Income guidelines based on County
• Borrower(s) must be first time home buyers and intend to occupy the residence
• At NO time can the property be rented or leased out

With all of the recent changes a $10,000 down payment on a $200,000 loan would equal 5% of the loan so now you are at a 95% Loan To Value and that can make a world of difference in the eyes of a lender. That can effectively lower their interest rate, their mortgage insurance and their overall payment. PLUS the loan is interest free and doesn’t require a repayment unless one of the above mentioned things happens.

For more information about this down payment assistance as well as Income guidelines please email me at the following address Rick@LoansByRickGrand.com

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