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Down Payment Assistance Loan (DPAL) - Detail Verified 8/7/14 Last Updated 1/18/13




Program Overview


Down Payment Assistance Loan (DPAL) - Detail Verified 8/7/14 Last Updated 1/18/13 is a secondary financing source for first-time homebuyers who buy a home in Portland's Interstate Corridor 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 and the Lents Town Center Urban Renewal Areas. The application is free, but if approved, the loan processing fee is $500 plus third party closing costs.


Who is eligible for this program?


Households must apply for the program by contacting one of the 4 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 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 $1,000 (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-$38,850; 2-$44,400; 3-$49,950; 4-$55,500; 5-$59,950; 6-$64,400; 7-$68,850; 8-$73,300.

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) or Interstate Corridor Renewal Area (URA). For maps of these areas visit http://www.pdc.us/our-work/urban-renewal-areas.aspx

The sales price cannot exceed $ 273,200.

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 . 20% of the debt is forgiven each year after the end of the 11th year, provided the borrower has maintained the property as owner occupied for the life of the loan. After 15 years the loan is completely forgiven. The DPAL Program includes loan funds for down payment, as well as grant funds for repairs. Maximum loan amount is $32,000 with an additional $8,000 maximum Home Improvement Grant.

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:15 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

Please note: Every attempt is made to reflect accurate and up to date information on housing programs displayed on this site. Some inaccuracies may exist. For verification contact a certified REALTOR member.



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