In a nation that values the service and sacrifice of its veterans, support and appreciation go beyond mere words. Oregon stands at the forefront of honoring its veterans by offering an Oregon Veterans Home Loan Program program that recognizes the commitment and dedication of those dedicated veterans. Find more about it below!
What is the Oregon Veterans Home Loan Program?
The Oregon State Department of Veterans Affairs is an organization at the state level dedicated to supporting veterans, their families, and caregivers in Oregon. While it operates independently from the Federal Department of Veterans Affairs, it offers akin services, such as an apparent veteran loan program.
This program is separated from the federal VA mortgage benefit. Oregon is one of only five states providing veterans with a specialized home loan program. This state benefit, unique from the federal VA Home Loan Guaranty, has facilitated around $8 billion in low-interest home loans for over 334,000 veterans since 1945.
Who is Eligible for the Oregon Veterans Home Loan Program?
To qualify, you need to meet one of the three service conditions detailed below:
Service Conditions
- Having served in the United States Armed Forces on active duty, as documented on the DD214, and meeting one of the following conditions:
- Serving more than 90 consecutive days before or on January 31, 1955, and being discharged or released under honorable circumstances; or
- Serving more than 178 consecutive days after January 31, 1955, and being discharged or released under honorable conditions or
- Serving 178 days or less and receiving an honorable discharge due to a service-connected disability or
- Serving 178 days or less with an honorable discharge and having a disability rating from the United States Department of Veterans Affairs or
- Serving at least one day in a combat zone and being discharged or released from active duty under honorable conditions.
- Having received combat, campaign, or expeditionary ribbon or medal for service and being discharged or released under honorable conditions.
- Currently receiving a nonservice-connected pension from the United States Department of Veterans Affairs.
The Fixed-rate and Requirements
Presently, the home loan program provides eligible veterans with fixed-rate financing for:
- The owner occupies single-family residences.
- Loans up to the limit of Fannie Mae.
- Solely available for home purchases, with no refinancing option.
- A maximum life benefit of four home loans.
- Requirements for the ODVA Home Loan Program:
- ODVA Loans are standard loans not associated with the federal VA Home Loan Guaranty.
- ODVA loans adhere to conventional conforming FNMA guidelines.
- Financing of up to 95% LTV (Loan-to-Value) is available.
- Private mortgage insurance is mandatory for all loans exceeding 80% LTV.
- Eligible veterans with ODVA confirmation can apply, but not from federal VA Home Loan Guaranty eligibility.
- The property must be situated within Oregon, but veteran applicants need not be residents of Oregon at the time of application.
- The residence must be the primary single-family owner-occupied property.
- Eligible property types include site-built single-family homes, condos, townhomes, and manufactured homes affixed to land, taxed as real estate within Oregon.
- Ownership must begin within 60 days of closing.
- ODVA serves as the first lien only.
- There’s a maximum lifetime benefit of four loans, with only one loan allowed to be open at any given time.
- Loan terms offered: 15, 20, and 30 years.
- No minimum loan restrictions apply.
- There are no income restrictions except for evidence of the ability to repay the loan.
- No recapture or prepayment penalties are imposed.
- Co-borrowers can only be the legally wedded spouse of the veteran borrower, including same-gender marriages performed in states where such marriages are legally recognized or Oregon Registered Domestic Partners.
Must Know about Oregon Veterans Home Loan Program
In contrast to federal VA mortgages that offer 15-year and 30-year loans, ODVA loans offer term options of 15, 20, and 30 years. There are no income restrictions for this particular home loan, and borrowers face no penalties for early loan repayment.
The property purchased through this program must be located within the state of Oregon, although Oregon residency is not a prerequisite at the time of application.
Several property types are eligible for ODVA loans. Qualifying properties include site-built single-family homes, condo units, townhomes, and manufactured homes “affixed to land and taxed as real estate.” However, items such as houseboats, RVs, or those not taxed as real estate are not eligible.
To learn more or begin the process, you can call 1-800-633-6826.
Oregon Veterans Home Loan Program: Loan Limit Increase 2023
The Oregon Department of Veterans Affairs (ODVA) is set to raise the maximum loan limit for the Oregon Veteran Home Loan program in 2023. It aligns with mortgage loan limits established by the Federal Housing Finance Agency (FHFA).
As of January 1, 2023, ODVA will now entertain loans up to the new maximum of $726,200. That is a boost of $79,000 from the previous year’s limit of $647,200. The Oregon Veteran Home Loan Program extends fixed-rate financial assistance to eligible veterans for their owner-occupied, single-family residences within Oregon.
This specific loan product is an enduring, lifelong benefit for any qualifying Oregon veteran and can be utilized up to four times. The program exclusively caters to financing home purchases and does not support refinancing options.
This state benefit is from the federal VA Home Loan Guarantee, which has facilitated nearly $9 billion in low-interest home loans to over 336,000 veterans. To qualify, a veteran must have served on active duty in the U.S. Armed Forces, as evidenced on their DD-214, meeting one of the service criteria delineated on ODVA’s website.
Are You Applying to the Oregon Veterans Home Loan Program?
In conclusion, the Oregon Veterans Home Loan Program is more than a financial aid initiative. It embodies the values of gratitude, respect, and tangible support for veterans. As a result, the government intends to appreciate the veterans by providing this home loan program.
The OVHL program is a testament to the state’s unwavering commitment to those dedicated veterans. This program stands for honoring service and offering a pathway to stability for those who have defended the nation. So, if you meet the requirements and want to purchase a house, look no further than relying on this home loan program.
