From Bend.com news sources

June 2 - SALEM - Gov. Ted Kulongoski issued a proclamation declaring June 2004 as "Homeownership Month" in Oregon. The proclamation acknowledges the important role homeownership plays in building strong communities and improving the quality of life in Oregon.

"Homeownership stabilizes neighborhoods, strengthens communities, fosters jobs and economic development throughout the state. We appreciate the Governor's acknowledgment of the key role homeownership plays in Oregon's vitality," said Bob Repine, Director of Oregon Housing and Community Services.

Oregon Housing and Community Services (OHCS), the state's housing finance agency, supports the creation of new homebuyers through its Residential Loan Program, also known as the "Oregon Bond Loan". The state-sponsored program helps eligible homebuyers increase their purchasing power by offering below-market interest rates and closing cost assistance when financing a home purchase. The below-market rates and closing cost assistance are made possible through the sale of tax-exempt bonds issued by OHCS.

OHCS provides eligible low and moderate-income households two pricing options: RateAdvantage Home Loan which offers the lowest rate or CashAdvantage Home Loan which includes cash assistance to pay closing costs. The RateAdvantage Home Loan provides eligible borrowers the Department's lowest fixed rate, which is currently 4.95%. The current CashAdvantage Home Loan rate is 5.45%, which includes cash assistance equal to 3% of the first mortgage loan amount to help pay a portion of the borrower's closing costs. Both pricing options are for fixed rate loans with a maximum 30-year term (loan fees not to exceed 1.75% of the loan amount). These rates are current as of June 1, 2004, and are subject to change. The special rates offered by OHCS are priced well below market for 30 year fixed rate loans. For the week ending May 27, 2004 the average 30 year fixed rate was 6.32% according to www.freddiemac.com.

To qualify for the program the borrower must be within the program's household income limits, be a first-time homebuyer (for most areas of the state), and the property's sales price must be within the program's purchase price limits. These limits cap sales prices between $189,682 and up to $281,875 depending on where the property is located. The household income limits are $58,600 statewide; $67,400 for Benton County; $67,900 for Clackamas, Columbia, Multnomah, Washington and Yamhill Counties. For most areas of the state, a borrower must be a first-time homebuyer which means they have not owned and occupied a home in the past three years.

OHCS works in partnership with the private sector lenders and individual loan officers who take loan applications and finance the mortgages. To make it easy to find a local lender, OHCS's web site www.oregonbond.us has created a Lender Locator search engine. Once an interested borrower selects the county where they want to buy, the search engine will tell them which loan officers are most active in that county. To find a local lender and to learn more about the program please visit our web site at www.oregonbond.us or call OHCS toll free at 1-877-ST8-BOND (1-877-788-2663).

OHCS is the State's housing finance agency and community services program administrator. The Department provides financial and program support to create and preserve opportunities for quality, affordable housing for Oregonians of lower and moderate income, and administers federal and state antipoverty, homeless, energy assistance and community service programs. The OHCS mission is to "Reach out for opportunities to create partnerships that improve Oregonians' lives, and the quality of our communities." For more information, visit our web site at www.hcs.state.or.us.

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