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Down Payment Assistance Loan (DPAL) - Detail Verified 07/20/10 Last Updated 02/05/10

Program Overview

Down Payment Assistance Loan (DPAL) - Detail Verified 07/20/10 Last Updated 02/05/10 is a secondary financing for first-time homebuyers who buy a home in one of Portland's Urban Renewal Areas. It is a silent second mortgage loan used in conjunction with a first mortgage loan from the Portland Development Commission or a Participating Lender. DPAL helps homebuyers: • Avoid the cost of mortgage insurance • Increase their purchasing power • Enjoy lower monthly house payments • Obtain funding for immediate or after purchase repairs and improvements. ***Note: Funds are currently exhausted. Apply in June 2010 for funds available in July 2010. Eligible Locations: PDC Urban Renewal Areas - Downtown Waterfront and River District. The application fee is $ 350.

Who is eligible for this program?

• First-time homebuyer • Owner-occupied residences only • Must meet standard first mortgage criteria for credit and down payment. • Combined liquid assets cannot exceed six months of PITIMI payments at closing or $10,000 whichever is more. • Must be a US Citizen or legal resident • Must complete a homebuyer education workshop provided by a HUD Certified Home Buyer Counseling Program. Funds are subject to available funding. Annual household income at or below 100% of Portland's Median Family Income adjusted for family size depending on the number of bedrooms in the home. Funds can be used for closing cost assistance, down payment assistance, post purchase renovation, and purchase rehabilitation. Maximum % of Sales Price: 25% HUD Median Income Limits: 100% Is this program for first time buyers only? Yes

Property Eligibility Requirements

Must be in a PDC Urban Renewal Area - Interstate Corridor, Lents Town Center, ict. For maps of these areas visit www.pdc.us/nhp-ura The sales price cannot exceed $304,950. Allowable property types: Single family one unit homes including warrantable condos and town homes. Other Types available also

Benefit Details

DPAL is a silent second mortgage with deferred payments. It is a below-market rate loan at 4% simple interest. Since the payments are deferred they are not included in their monthly payments and for underwriting purposes. This increases the borrower's purchasing power and lowers their monthly payment. The borrower's first mortgage payment does not include monthly mortgage insurance since the first loan is at or below a loan-to-value of 80%. The loan is assumable by eligible borrowers. Maximum amount is 25% of the purchase price. Benefit: Below market rate (4% interest on an annual basis) secondary financing with deferred payments and is forgiven after 30 year loan term expires. DPAL includes funds for down payment, as well as, funds for repairs (5% of the purchase price). Loan Term: 30 years years Homebuyer Counseling / Education Required: yes Owner Occupancy Required: Yes Other Program Comments: This program is available from certain participating lenders. For a list of these lenders visit www.pdc.us/mcc. For more information about the program in general visit www.pdc.us/nhp

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