Own Your Own Program

Program Announcement:

December 1, 2009 - The Own Your Own (OYO) Program is no longer accepting OYO Entry Packets as the 5:00 p.m. November 30, 2009 deadline has passed and the deadline has not been extended. The Portland Development Commission (PDC) will conduct a lottery to select which of the eligible OYO Entry Packets it received will be further considered for OYO funding. The lottery will be conducted at 10:00 a.m. on Thursday December 3, 2009 at the offices of the Portland Housing Bureau located at 421 SW Sixth Avenue, Suite 500 in Downtown Portland. The lottery selection process is open to the general public. All persons who submitted an eligible OYO Entry Packet will be notified about the results and if and when they will be offered OYO funding.

Features/Benefits

The Own Your Own (OYO) Program is a zero percent deferred payment loan to help income eligible homebuyers purchase foreclosed homes located in specific areas of Fairview, Maywood Park, Portland, Troutdale and Wood Village. The purpose of the program is to revitalize these areas by encouraging low and moderate income households to purchase and occupy vacant foreclosed properties. The maximum loan amount is up to $50,000 and may be used to pay for the down payment, closing costs and repairs.

Eligibility Requirements

Eligible Homebuyers

Owner Occupancy:	Must occupy the property as their principal residence.
Income Limit:	Gross annual household income may not exceed 120% of the HUD median income, adjusted by size: One person $58,800 Two person $67,200 Three person $75,600 Four person $84,000 Five person $90,720 Six person $97,440 Seven person $104,160 Eight person $110,880
Homebuyer Education:	Must complete an approved homebuyer education class prior to closing.
Credit:	Borrower(s) must comply with credit standards determined by the first mortgage lender and first mortgage loan program, subject to PDC approval.
Ratios:	Maximum debt-to-income ratio cannot exceed 45% (no exceptions) and the front end housing payment ratio (PITI) may be no less than 30%.
Down Payment:	Borrower must make a minimum contribution of at least 1% of the purchase price but no less than $1,000 of their own funds.
Liquid Assets:	No more than $15,000 in liquid assets after loan closing.

Selection Process

PDC will use a lottery system to select which households will be offered OYO funding. To enter the lottery, households must deliver an OYO Entry Packet to PDC between the dates of November 9, 2009 and by 5:00 p.m. on November 30, 2009.

General Loan Terms

Interest Rate:	0.00% simple interest (0.00% APR).
Type of Loan:	Secured second mortgage and deferred payments.
Maximum Loan:	For properties without rehab- 20% of the purchase price plus allowable lender closing costs up to a maximum of $50,000. For properties with rehab- the maximum loan amount is $50,000.
Loan Fees:	None, but there are recording fees and other third party costs.
Eligible Uses:	Down payment (max of 20% of the purchase price), allowable lender closing costs, and necessary home repairs.
Subordinate Financing:	Permitted, but must be in a subordinate lien position and as permitted by the first mortgage loan product and lender.
Repayment:	The principal plus any applicable “windfall profits” must be repaid when the property is sold, the title is transferred, the property is refinanced, or if the borrower no longer occupies the home.
Windfall Profits:	During the first three years of ownership, borrower’s profit from the sale or refinance of the property is limited to $10,000 per year.
Escrow Holdback:	If a property requires post closing repairs, PDC will hold the repair funds in an escrow account and disburse the funds upon completion of the work as determined by a PDC Construction Specialist. OYO Recipients will need to check with their selected lender to ensure this is compatible with the lender’s lending practices and requirements.

Eligible Properties

Eligible Areas:	NSP targeted areas located within Multnomah County Oregon include portions of Fairview, Gresham, Maywood Park, Portland, Troutdale and Wood Village. Download a map of these areas in the "Downloads" sidebar at the top of this page.
Property Type:	Foreclosed upon or deed-in-lieu of foreclosure Single Family Residence (one-unit).
Discount:	Must be purchased for at least 1% below the property’s Fair Market value.
Inspections:	Properties must pass a Lead Based Paint (LBP) Visual Assessment (pre 1978 houses only); Housing Quality Standards (HQS); Pest and Dry Rot inspection(s), and Environmental review.
Vacancy:	Properties must be vacant.