Oregon Bond Residential Loan Program
Call: 503-986-2000
Email: [email protected]
Website: https://www.oregon.gov/ohcs/homeownership/Pages/loan-programs.aspx
Oregon Bond Residential Loan
Frequently Asked Questions
Q: Is the Bond program for rst-time homebuyers only?
A: The Bond program is focused on rst-time homebuyers, meaning not having owned a home in the past three years.
There are exceptions if you buy in a targeted area (see below) or if you’re a veteran using our one-time veteran
exemption.
Q: Are there income and property purchase price limits? How often are the limits changed and by whom?
A: Yes. You can nd the income and purchase price limits on our website under the lender toolkit. The income and
purchase price limits change annually and are set by the IRS.
Q: What are targeted and non-targeted areas, and how are they determined?
A: Targeted areas are federally identied areas of slow economic growth where homeownership is encouraged with
higher income and purchase price limits. First-time homebuyer requirements don’t have to be met, but you cannot
have another residence in your name at closing of the new bond home. Income and purchase price limits apply.
You can nd if a home is targeted or non-targeted by using the link at the bottom of the targeted document and
nding the Census code. If the Census code is on the targeted area document, then the home is in a targeted area.
Q: What are the credit score guidelines?
A: Bond doesn’t have a minimum credit score guideline. Please work with one of our approved lenders to determine
program eligibility.
Q: What are the Bond guidelines for bankruptcies?
A: Bankruptcies must be discharged for two years, and if a home was involved in the bankruptcy, then the homebuyer
must wait ve years from discharge.
Q: Can I use Bond to purchase a manufactured home?
A: Yes, but the manufactured home must be on its own land and taxed as real property. Bond doesn’t allow purchase
of manufactured homes in parks on leased land. The manufactured home must be built after June 1976.
Q: Is there down payment assistance with the Bond program?
A: The Bond Cash Advantage program offers 3% of the loan amount to be used for closing cost and pre-paids. The 3%
cannot be used for the down payment.
Down payment assistance may be available from OHCS’ homeownership center partners. Funds are limited and
how to apply varies depending on the center. Please contact a center close to where you want to buy for more
information.
Q: Is there a fee to use the Bond program?
A: No. Bond doesn’t charge a fee to use the program.
Q: Is there a pre-payment penalty or renance fee?
A: No. You can pay off or renance your Bond loan at any time without penalty.
Q: Can I rent out a Bond home?
A: No. Homes purchased using the Bond program must be used as your primary residence and cannot be rented out
at any time.
Q: What loan types can be used with the Bond program?
A: We offer Conventional, FHA, VA, and USDA. When using a government-backed loan, you must meet the
qualications for that program in addition to the Bond guidelines.
Q: Does the Bond program run out of money?
A: No. There are program safeguards in place to ensure there’s enough money to keep the program funded.
Q: How do I apply for the Bond program and what is the process? Does the loan process take longer than a traditional
loan process? Is there additional documentation required?
A: Contact an approved lender to start the loan process. Your loan ofcer will work with you to determine the best
loan program for you. If the Bond program is the best option, then you will follow the same loan process as you would
for a traditional loan. Bond loan processing time and required documentation is the same as for a traditional loan.
Last updated: 6/13/23
