Believe it or not…there are a lot of great, valuable homebuyer programs out there. Unfortunately, many (if not most) lenders don’t offer them. Probably not your credit union, not your big bank, and not your brother-in-law mortgage guy.
“Why?” you ask. That’s a good question.
Mainly it’s out of ease. The fewer specialized programs a lender offers, the less studying they have to do, the less paperwork they have to fill out, etc. Obviously, that’s not a great reason to their clients!
So to help you out, I’ve written this article, which gives you a quick summary of each program. I’ve also added links to other articles, websites & blog posts that you can check out if you want a more detailed breakdown.
Remember: Filling out a Pre-Approval Application is the only way we’ll know which loan program (or programs) will provide you with the most value, for your specific situation.
• The newest & currently most popular homebuyer program we offer. The Eagle Edge Cash Grant is a proprietary program to Eagle Home Mortgage, so you can’t get it anywhere else.
• Offers a true cash grant to eligible borrowers. There is NO repayment required. It’s not forgiven over time. The money really is yours, the day you close!
• PLUS…the Eagle Edge program is available statewide (and nationwide too!).
• There is NO first-time homebuyer requirement. And it has extra-high income limits, so homebuyers of all kinds could benefit from this program
• It can even be used on 2-4 unit properties.
• For all of you out there that have low interest rate as your #1 home loan priority, then The Oregon Bond is for you!
• It offers eligible borrowers a deeply-below market interest rate! Click to see the latest interest rate
• The Oregon Bond also has a ‘cash advantage’ option, if you prefer that over the lower rate.
• This one is specifically for first-time homebuyers. BUT in certain parts of Washington Co, and elsewhere in the state, that first-time buyer requirement is waived!
• This program is not credit score sensitive. If you qualify for the program, then you will receive the deeply-below market rate.
• This is one of the most valuable tax credits in the country! AND…The MCC Tax Credit never expires as long as you are in the home & the loan!
• It’s a large annual tax credit that could offset more than 10% of your mortgage cost.
• It can even be combined with the awesome Eagle Edge Program above. Pretty cool. Seriously valuable.
• The MCC is for first-time homebuyers. But, that includes people who have not owned a home in the past 3 years.
• This program offers eligible borrowers a choice of 4%, 5%, 6%, or 7% in down payment assistance, of the loan amount. You decide how much you want.
• The Portland Homebuyers Assistance Program is ideal if you want to retain more of your savings, and pay less out of pocket. Cash is king…so keep yours in the bank if you can!
• It is currently limited to the Portland city limits. (But they could change in the future)
• There is NO first-time homebuyer requirement. Just can’t own another property at closing.
• It also has very generous income limits – which apply only to ‘Applicant & Qualifying Income’. Give me a call any time and I’d be happy to explain how this works.
• USDA 100% Financing — Another great option with generous household income limits. PLUS, we are one of the few lenders that can bundle this program with The Oregon Bond Loan, for even more savings! This program is available in specific areas, so check out the USDA Eligibility Page for more info.
• MAP 100% Financing — No money down financing AND with no mortgage insurance. Eligibility requirements apply. Pretty sexy if you are a mortgage geek like me. Or if you happen to like the lowest payment possible, with no down payment.
• Chenoa 100% FHA Financing — An awesome statewide program, with no first-time homebuyer requirement. And it’s the one and only program in Oregon that has NO INCOME LIMIT. So this is perfect for higher income household that may not qualify for other programs.
• Keys To My Home Grant — Another option that offers a grant to help cover your down payment. Offered by the Portland Housing Bureau. Contact me to learn more about it.
• Renovation/Rehab Loans — While this isn’t technically a homebuyer program, it does allow you to buy that fixer-upper that you were told you wouldn’t qualify for financing on. Plus, you can also use these loans to build an amazing basement apartment that you can rent out nightly on Airbnb, for some great passive income!
• Gresham’s Welcome Home Down Payment Assistance
• Clackamas CHAP & NCRA
• 1% Down Conventional Financing
• Programs that are lenient on student loan debt — Contact me for details. There’s some good options out there.
No matter your situation, if you’re working with the right lender, they should have programs and strategies that can be tailored to your needs. As a result you can almost always receive some serious value from these programs. This is especially true for first time home buyers. Working with a lender who specializes in first time home buyer programs is just about the most important decision you can make in the mortgage process. So remember, know your options and work with the right lender.
Thanks for reading,
See ya next time!