Oregon Bond raised interest rates on Friday, March 23rd for the first time in over a year. The Rate Advantage product now has a rate of 3.625% (previously 3.25%) and the Cash Advantage product now has a rate of 4.125% (previously 3.75%). These are still amazing 30 year FIXED interest rates for first-time homebuyers who qualify.
With a 20% down payment, Oregon Bond can be used with a conventional loan. With less than 20% down, Oregon Bond is used with an FHA loan.
Income limits and purchase price limits did not change. These vary by county and also how many people living in the house. Qualifying income is based on all household income, not just borrowers on the loan. Please visit Oregon Bonds website for specific details: www.oregonbond.us
Portland-metro income limits are:
· $87,921 annualized income for 1-2 people
· $101,109 annualized income for 3+ people
Portland-metro purchase price limit is: $375,882
The Cash Advantage program provides 3% of loan amount as cash assistance to help reduce the first-time homebuyers closing costs and prepaid items. This cash assistance cannot be applied to the down payment but it greatly reduces the cash required to buy a home while also providing an amazing interest rate.
There is a potential IRS recapture tax if all three apply:
- Home is sold within first 9 years of ownership
- Home is sold at a profit
- Income at time of sale exceeds qualifying income limit growing at 5% per year
Therefore, this program may not be for every first-time homebuyer that qualifies. This is something we go into detail about with our clients to make sure they are aware of any potential IRS recapture tax.
Please reach out to us if you are interested in learning more about the Oregon Bond program.