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Program: Down Payment Assistance Loan (DPAL)

Detail Verified 7/15/15 Last Updated 3/31/15

Program Overview

Down Payment Assistance Loan (DPAL) is a secondary financing source for first-time homebuyers who buy a home in Portland’s Interstate Corridor, Gateway Regional Center, or Lents Town Center Urban Renewal Areas. It is a second mortgage loan used in conjunction with a first mortgage loan from a first mortgage lender. DPAL helps homebuyers who are selected by the Minority Homeownership Assistance Collaborative to: • Increase their purchasing power • Enjoy lower monthly house payments • Obtain funding for after-purchase repairs and improvements.

Eligible locations are the Interstate Corridor, Gateway Regional Center, and Lents Town Center Urban Renewal Areas.

The application is free, but if approved, the origination fee is $500 plus third party closing costs.

Who is Eligible for this Program?

Households may apply for the program by contacting one of the four organizations that make up the Minority Homeownership Assistance Collaborative (the African American Alliance for Homeownership, Hacienda Community Development Corporation, Native American Youth and Family Center, and the Asian & Pacific Islander Community Improvement Association) or the Portland Community Reinvestment Initiative. The application form lists selection criteria. Those who meet the minimum threshold score are eligible, with priority given to the highest scores • First-time homebuyer • Owner-occupied residences only • Must meet standard first mortgage criteria for credit and down payment. • At closing combined liquid assets cannot exceed $10,000. • Borrower must provide a minimum investment of no less than $500 (Gift funds are allowed). • Must be a US Citizen or legal resident • Must complete an 8 hour Housing and Urban Development (HUD)-approved homebuyer education class. Funds are subject to availability.

Annual household income must be at or below 80% of Portland's Median Family Income adjusted for family size: 1-$41,200; 2-$47,050; 3-$52,950; 4-$58,800; 5-$63,550; 6-$68,250; 7-$72,950; 8-$77,650.

Maximum loan amount is $48,000 with an additional $12,000 maximum Home Improvement Grant.

Loan funds are for down payment assistance and include a post purchase renovation grant that is equal to 25% of the loan.

HUD Median Income Limits: 80%

Is this program for first time buyers only?: Yes

Property Eligibility Requirements

Must be in an Urban Renewal Area in Lents Urban Renewal Area (URA), Gateway Regional Center Urban Renewal Area (URA), or Interstate Corridor Renewal Area (URA). For maps of these areas visit http://www.pdc.us/our-work/urban-renewal-areas.aspx

Allowable property types: Single family unit homes including existing condos and town homes. Newly constructed condos are not eligible.

Benefit Details

No interest secondary financing with deferred payments. The DPAL Program includes loan funds for down payment, as well as grant funds for repairs.

Benefit: DPAL is a second mortgage loan with deferred payments and does not charge any interest. Since the payments are deferred they are not included in their monthly payments or for underwriting purposes. This increases the borrower's purchasing power and lowers their monthly payment.

Loan Term: 30 years

Homebuyer Counseling / Education Required: Yes

Owner Occupancy Required: Yes

Other Program Comments: This program is available from any lender who can get approved to offer financing that is compatible with the program. For more information about the program in general visit www.portlandonline.com/phb/dpal

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