Oregon Statutes 407.205 – Application for loan; amount of loan; limit on number of loans
(1) A person qualified under Article XI-A, section 3, of the Oregon Constitution, to apply for a loan for the acquisition of a home or farm must submit the application to the Department of Veterans’ Affairs pursuant to the provisions of this chapter.
Terms Used In Oregon Statutes 407.205
- Acquisition: means the purchase, improvement or refinancing of a home or farm or the payment of down payments or closing costs for such purposes. See Oregon Statutes 407.085
- Contract: A legal written agreement that becomes binding when signed.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Fee simple: Absolute title to property with no limitations or restrictions regarding the person who may inherit it.
- Home: includes real property connected to a residential structure, including any long-term leasehold and any outbuildings. See Oregon Statutes 407.085
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Person: includes individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies. See Oregon Statutes 174.100
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- United States: includes territories, outlying possessions and the District of Columbia. See Oregon Statutes 174.100
(2) An applicant may not borrow more than the maximum amount allowed for a loan under this section.
(3) The maximum amount allowed for a loan made under this section may not exceed the least of:
(a) The maximum original principal balance permitted on a single-family first mortgage loan published by the Federal Housing Finance Agency, at a rate of interest provided by ORS § 407.325;
(b) The maximum loan-to-value ratio or combined loan-to-value ratio permitted by the United States Department of Veterans Affairs for its Home Loan Guaranty Program (38 U.S.C. § 3701 et seq.; 38 C.F.R. part 36); or
(c) If the property to be acquired with the funds from the loan is a farm, 90 percent of the net appraised real property value.
(4) When calculating the maximum amount allowed for a loan under this section, the Department of Veterans’ Affairs shall exclude:
(a) Funds disbursed under ORS § 407.145 (2) and 407.275 (4); and
(b) The amount of a loan that has been repaid, or for which the property securing the loan has transferred by deed or otherwise, if the property:
(A) Is destroyed by fire or other natural hazard; or
(B) Is taken through condemnation or lost or disposed of for a compelling reason devoid of fault on the part of the applicant.
(5) An eligible person may not receive or, under ORS § 407.305, assume more than four loans under this chapter.
(6) For the purposes of this section, an applicant owns a home when the applicant has fee simple title to the home or is the purchaser of the home under a contract of sale or other instrument of sale. Earnest money or preliminary sales agreements, options or rights of first refusal are not contracts or instruments of sale under this subsection. [Formerly 407.040; 1989 c.677 § 5; 1991 c.67 § 97; 1993 c.192 § 1; 1997 c.36 § 1; 1999 c.41 § 1; 2005 c.625 § 30; 2007 c.43 § 1; 2013 c.227 § 1; 2014 c.30 § 1; 2019 c.223 § 10]
[Amended by 1963 c.9 § 23; renumbered 407.575]