If an interest rate below 4% is appealing to you, you should consider the Oregon State Bond Loan as an option in your next home purchase.
Yes – it can be used in a “next” situation. Though the program is a first time home buyer program, there are options for previous home owners to use this program. The Bond Loan defines a first time home buyer as someone who hasn’t owned a home in the last three years. So, if you owned a home, but sold it prior to 2007, it’s possible that you could qualify for this loan.
Currently, the State Bond Loan has an interest rate of 3.875%* and an APR of 4.721%*. These low interest rates might be a once in a lifetime opportunity.
The program is underwritten to FHA guidelines so it’s a pretty easy program to qualify for. FHA allows for less than perfect credit, and has flexible debt-to-income guidelines as well.
There are income limitations, but they are quite generous. You should plan on being a long term owner due to the potential “recapture” tax penalty (which isn’t automatic, nor is it as bad as many loan officers make it out to be).
Any “first time” home buyer should be considering this tool to minimize their housing expense!
*Based on a $200,000 sales price and $194,930 loan amount. Finance Charge $157,406.55, Amount Financed $190,935.08 and Total of Payments $348,341.73. Credit on approval. Terms subject to change without notice. Not a commitment to lend. Call for details. Equal Housing Lender.
Brett Reichel’s Blog http://www.brettreichel.com
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