PDC will begin accepting OYO Entry Packets between the hours of 9:00 a.m. and 5:00 p.m. on Monday, November 9 at 9:00 a.m. until Monday, November 30 at 5:00 p.m. To be considered for the OYO program households must submit an OYO Entry Packet to PDC prior to the deadline. Once the deadline has passed no further packets will be accepted unless the number of entries is deemed to be insufficient to allocate the funds budgeted for the program.
A complete OYO Entry Packet must be delivered to the Portland Development Commission (PDC) to the attention of the Neighborhood Housing Program at 222 NW 5th Avenue, Portland Oregon 97209 by the above deadline. If the packet is mailed, regardless of when it is postmarked, it must still be stamped as received by PDC prior to the deadline.
An OYO Entry Packet must include all of the following relevant documents:
A fully completed and signed OYO Questionnaire (which will be posted at www.pdc.us/oyo, November 9, 2009 by 9 a.m.)
Proof of current income for all adults in the household, such as one month of current pay stubs, 2008 W2’s or award letters for all income earners in the household. If self-employed, provide copies of 2007 and 2008 federal tax returns and a current profit and loss statement for 2009.
A credit approval letter from a first mortgage lender for a 30-year fixed rate loan. The approval letter must demonstrate that the application has been fully underwritten including a credit approval, credit scores and the underwriter’s signature.
Certification from the first mortgage lender that they can close a first mortgage loan with a second OYO loan and that the OYO loan meets their programmatic requirements (form will be posted at www.pdc.us/oyo on November 9, 2009 by 9 a.m.).
A copy of the signed Uniform Loan Application (1003) that was submitted to the first mortgage lender.
A copy of the Good Faith Estimate and Truth in Lending Disclosure provided by the first mortgage lender.
Proof that the borrower has at least 1% of the purchase price in their own funds to purchase the home.
Appropriate documents include bank statements (checking and savings account) and/or a gift letter from a family member.
FIRST MORTGAGE FINANCING TERM LIMITATIONS:
To obtain the approval letter, applicants select a lender of their choice. The loan MUST be a 30 year fixed rate conventional, FHA, HUD 184, or VA loan.
The interest Rate cannot significantly exceed the current market interest rate as determined by PDC.
Loan fees cannot exceed a 1% loan origination fee, a 1% yield spread premium (if applicable) and cannot exceed $1,000 in other direct lender or broker fees.
Lenders need to confirm that their first mortgage underwriting guidelines will permit a Community Second up to 105% combined loan-to-value, or other limits imposed by the loan type they have selected.
The total Debt-to-Income Ratio must be under 45% and the proposed house payment (PITI) must be no less than 30% of the household’s gross monthly income.
When PDC receives a OYO Entry Packet it will be date stamped by the PDC receptionist or security guard to prove the package was received by the deadline, 5:00 p.m. on November 30. Upon request the deliverer of the packet will be provided a receipt documenting it met the submission deadline. PDC will NOT accept electronic submissions of an entry packet by fax or e-mail.
Prior to the drawing all packets will be reviewed by PDC staff to determine which entry pool they fit into. The two types of entry pools are:
Low-income (80 percent of Median Family Income as adjusted for size) first time homebuyers (applicants who have not owned and occupied a home in the past three years); or all other eligible entries.
All eligible entries will be sorted into these two different types and then assigned a sequential number. From the pool of all eligible entries, 32 of the entries will be randomly selected made up of 24 entries from the first pool and 8 entries for the second pool according to the approved selection process (link to detailed selection process). All households who are selected via this process will then be notified that they will be considered for the program subject to qualification and funding availability. The drawing will be held at 10:00 a.m. on Thursday, December 3 at the office of the Portland Housing Bureau located at 421 SW 6th Avenue Suite 500 in Portland.
This selection process will be conducted in accordance with federal, state and local fair housing laws and is an equal opportunity housing event. For more information about the selection process please contact Jon Gail at 503-823-3292 or by e-mail at [email protected]