Interest-Free Loans For Portland Foreclosure Buyers

Posted on 07/8/09 5:06 PM

City of Portland To Offer Up To 50k Interest Free Loans

The City of Portland’s new Portland Housing Bureau is preparing to launch a brand new homebuyer assistance program called the Own Your Own Loan Program. With federal and state Neighborhood Stabilization Program funding, the program is estimated to help first-time homebuyers purchase a home of their own by providing them a silent second mortgage of up to $50,000 to be used for down payment, closing costs and home repairs. The secondary loan, payable to the State of Oregon, does not accrue interest and does not require monthly payments. The program does have a declining five year share of appreciation provision to encourage longer term ownership and also requires the borrowers to occupy the homes for the life of the loan.

Eligible Properties Are Limited To Foreclosed Properties

Eligible properties are limited to foreclosed properties in specific target areas located in Fairview, Gresham, Portland, and Troutdale. Click on the map below to find out which areas are included:

The Fine Print…

Neither the purchase price or the after-rehab appraised value of eligible properties may exceed $266,000.
The purchase price of the property must be at least one percent below the property’s appraised value.
Program is only open to borrowers who have not owned a home in the past three years (first time homebuyers)
Borrower may not earn more than 100 percent of the Median Family Income (MFI) adjusted for household size.

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