Eugene, OR – First Time Home Buyer Programs
Are you looking to purchase your first home? Our first time home buyer programs might be the perfect solution to help you obtain the financing you need to purchase the home you desire. We provide excellent home financing options, and encourage you to compare our offered loan terms to other mortgage lenders.
Eugene First Time Home Buyer Loans
There are 5 types of first time home buyer loans. You may select different loan terms, such as a fixed rate or adjustable rate mortgage, and the number of years to repay the loan (such as a 30 year fixed rate mortgage).
Types of Mortgages:
- Conventional Loans – Conventional loans offer the best loan terms to borrowers with good or excellent credit, as well as those who can afford to place a larger down payment. If you are able to put 20% or more down, you will be able to avoid paying private mortgage insurance (PMI). However, conventional loans also offer low down payment options, such as programs that only require 3% down.
- FHA Loans – FHA loans are a good option for borrowers who may not be able to qualify for a conventional loan. The qualification requirements for FHA loans are much more lenient than conventional loans. This includes options for home buyers with credit scores as low as 500 (in order to qualify for a 3.5% down payment, you must have a credit score of at least 580).
- USDA Loans – USDA loans provide home buyers the opportunity to purchase a home without any down payment. These loans are intended for borrowers with low-to-moderate income. In addition to not requiring any money down, you can also finance the closing costs into the loan. This means you can essentially buy a home with no money out of pocket!
- VA Loans – Active duty military members and veterans can apply for a VA loan which allows you to buy your first home without any down payment. These loans are not available to the general public, but exclusively to military/veterans.
- Jumbo Loans – Any loan that does not meet the conforming or FHA loan limits is a jumbo loan. The 2019 FHA loan limits for Eugene (Lane County) are as follows: Single unit: $314,827. Two units: $403,125. Three units: $487,250. Four units: $605,525. For conforming loans, which are used for conventional and VA loans, the maximum loan limits are: Single unit: $484,350. Two units: $620,200. Three units: $749,650. Four units: $931,600. If you want to buy a more expensive home, and have the income to qualify, we provide what are known as jumbo loans up to $2,000,000.
The above 5 types of loans are the main first time home buyer options that exist. We can help you determine which loan is the right fit for you based on your particular needs and eligibility.
Eugene, Oregon – Down Payment Assistance Programs
There are a variety of down payment assistance loan programs available in Eugene, Oregon. The two primary programs that exist are the Oregon Housing and Community Services Residential Loan Program, and the City of Eugene Home Buyer Assistance Program.
Eugene Homebuyer Assistance Program
The City of Eugene Community Development Department is currently offering an assistance program for low income households. This is an opportunity to receive up to $10,000 in down payment assistance. How this works, is the loan is deferred (does not require payments or to be paid back) until you sell the home, or no longer occupy the property as your own primary residence.
- Only first time home buyers are allowed. If you have not owned any residential real estate in the last 3 years, you are considered a first time home buyer again and can apply.
- It is required that you provide 50% of the total required down payment. The amount of the down payment depends on multiple factors, including the type of mortgage program, price of home, and your personal qualifications.
- You must purchase a single family residence (detached, 1 unit home), or a qualifying condo. You can not buy a multi-family property (including 2-4 unit homes). It is easy to determine property eligibility and we can assist you if you would like to find out what types of homes in Eugene are eligible.
- The maximum purchase price allowed is $209,00.
- In order to qualify, you must not exceed the income limits which are based upon how many people live in your household. You can view these limits below:
Household Size Income Limits
- 1 $32,500
- 2 $37,150
- 3 $41,800
- 4 $46,400
- 5 $50,150
- 6 $53,850
If you are interested in seeing if you qualify, or would like to apply, get in touch with us today. The procedure requires that a lender submit your application on behalf of you. We can also answer any of your questions and help you see if you qualify. To learn more give us a call, or submit a request for a free consultation through our online form.
You can also review information the City of Eugene website.
Oregon Housing and Community Services – Residential Loan Program
Periodically, Oregon Housing and Community Services will issue mortgage revenue bonds as a way to assist eligible households in obtaining lower than market rate interest loans on their first home. More commonly referred to as the Oregon Bond Loan, this program helps families both make a house purchase and keep monthly payments low enough to afford.
It is split into two distinct choices eligible applicants can choose from. These are:
- Cash Advantage, is the down payment assistance loan. It gives borrowers a fixed rate loan of lower interest along with cash assistance of up to 3% of the loan itself. These fund can then only be used to pay for down payment and closing costs.
- Rate Advantage, simply helps give borrowers the lowest fixed rate possible as a way to maximize property purchasing potential through affordability.
How to qualify for the Residential Loan Program:
- Household income levels must fall under the limits set forth by Oregon Housing.
- Borrowers can only be first-time homebuyers, meaning they cannot have owned any sort of principal residence in three years prior to closing. This is waived, however, if the property is located in a designated area.
- Borrowers must be Oregon residents and must agree to inhabit the home primarily.
- Applicants cannot have been discharged from bankruptcy in the past two years or have suffered foreclosure in the past five years.
- Mortgage length may vary from 15 to 30 years. This loan may be an FHA insured, USDA Guaranteed Rural or Conventional Uninsured.
- Eligible properties must be located in Oregon and can be either existing or newly constructed. Units include site-built homes, condos, homes in a planned development and manufactured homes permanently tied to foundations. If it is a manufactured home, it must have been built after 1976 and offer its residents a living area of at least 400 feet.
- A recapture fee is in effect for properties that are sold or refinanced within the first nine years.
Frequently Asked Questions About Buying Your First Home
How much do I need for a down payment?
It depends on the type of loan you want. USDA and VA loans often will not require any down payment. FHA loans require a 3.5% down payment, which if you get down payment assistance, only .5% is required. Conventional loans typically require either 3% or 5%.
How do I know if I am ready and prepared to own a home?
It is critical to consider the often unexpected expenses of buying a home. This includes repairs, maintenance, and of course furnishing the home, monthly utilities, and all other expenses that are associated with homeownership. A common mistake is to just look at the difference in rent to your total mortgage payment. Almost every year, you can expect to have to pay for various upkeep to keep the property functional. This can include anything from repairing a hot water heater that broke, to landscaping, and various maintenance.
Something else financial consultants advise is that you have at least 3 months of reserves. This means that you could afford to make your new mortgage payment for at least 3 months in the event that you lose a job or have some other unforeseen circumstance that the savings would be needed for. This is not a requirement for most home loans, but it is good advice to consider.
How much can I afford to borrow?
The amount that you can borrow depends on your particular loan type and income. There are maximum loan limits which are set at the county level. Conforming loan limits are the maximum lending amount allowed for conventional mortgages. FHA loans have their own loan limits. You can search the maximum loan amount for your county for each particular loan type by entering your zip code (or any zip code for the county you want to buy a home in). This will display the maximum amount available for all loan types. This is not necessarily how much you can borrow though, but the max amount in your location. Your personal limits will be based upon your income and how much debt you have. For instance, with most loans, you can not have a mortgage payment and debts exceed 43% of your income.
Can I buy a home without a real estate agent?
It depends on your state and the type of loan program. For some states, you must use an agent. In other states, you are not required to use a real estate agent for many loan program, such as conventional mortgages. However, some loan types require that you use a real estate agent regardless of your location, such as USDA loans.
Can I buy a home if I owe tax debt?
For government-backed loans, such as FHA, VA, and USDA loans, you can buy a home with tax debt as long as you have made a payment plan with the IRS and are not behind on the payments. Any federal debt must be in good standing in order to get a government-based mortgage. If your tax debts have moved into the status of a tax lien, this will prevent you from getting a home loan until it is resolved.
Can I buy a home if I have student loans?
As long as you are not delinquent on the student loan payments and the monthly payments do not cause excessive debt-to-income ratios, you can still get a mortgage.
Can I buy a home without my spouse?
A common question is if you can buy a house without your wife or husband. The short answer is yes. There are numerous reasons someone may want to exclude their spouse from a mortgage application, such as lower credit, lack of job history or income, or one spouse having excessive debt that could prevent an approval. You may be able to qualify and get a home loan without your spouse.
Can I buy a home after foreclosure?
Most loan programs will require you to wait 3 years before you can buy again after a foreclosure. There are some instances that you might be able to get an approval in as little as 12 months. This includes the FHA extenuating circumstances program (more commonly known as the “FHA back to work program”). If you lost your job due to a job loss or some other event out of your control, you might be able to purchase a home with a FHA loan after only 1 year.
I do not have much credit, can I still get approved?
A 580 minimum is required for a FHA loan. A 620 is required for all others. You may find a lender who can help you if you have poor credit. We do not offer any bad credit mortgage programs
Have more questions about buying your first home? View our list which covers even more commonly asked questions about buying a home. Or you can give us a call at 1-800-731-3560.