Grants & Loans

First Time Buyers Down Payment Assistance

Many people who thought they could never own their own home can...with a little help. For most families the down payment and closing costs are the biggest barriers to home ownership. On a $175,000 house the cost to close (down payment, lenders fees, escrow fees, insurance, etc.) can be as much as $16,000.

Fortunately, several agencies offer grants and loans to low and moderate income buyers, and most of these programs can be used together.

Do You Qualify?

If you haven’t owned a home in the past 3 years, you qualify as a first time home buyer.

Credit: You do not have to have perfect credit, but you do need fair to good credit. That means you may have some late payments, charge-offs or collections, but not a steady history of them. The past 3 years are the most important.

HAP & SHOP

The City of Eugene offers the Homebuyers Assistance Program (HAP) and Springfield has the Springfield Home Owners Program (SHOP). They are both $10,000 loans, and are interest free, but must be paid back when you sell.

Qualifications

HAP and SHOP recipients must contribute at least $1500 of their own funds to the purchase. It can be a gift from a family member however. The home must meet HUD's "Minimum Housing Quality Sandards" This means it is safe, the plumbing, heating and electrical systems work, any dryrot and water damage is repaired and the "interior and exterior paint surfaces are smooth and intact". Also, "at the time the house is listed for sale it must be either seller occupied, buyer occupied (as a renter) or vacant. This is so the programs aren't responsible for displacing a tenant.

OREGON MORTGAGE BROKERS ASSOCIATION

The OMBA offers a $1500 grant to buyers who qualify for HAP or SHOP. The only requirement is that you are getting one of the other grants.

OREGON STATE BOND PROGRAM

The Oregon State Bond Program is a state subsidized interest rate. Even if you don't qualify for the other grants you probably qualify for the State Bond Program. The income limit is $58,600 a year, and the purchase price of the home must be under $189,682.

State Bond offers two options: The RateAdvantage Loan has the lowest interest rate, currently only 5.25%. The CashAdvantage Loan gives buyers 3% of the purchase price to use toward their purchase and a low interest rate (5.95%, currently). (STATE BOND IS TEMPORARILY OUT OF FUNDS.)

Remember, these programs can all be used together! If you qualify for all of them you could get about $16,000 toward $175,000 home at 5.95% interest or $7,500 at 5.25% interest. You can buy a home now! Reach!