OHCS Rate Advantage USDA Loan
Best For: First Time Homebuyers, Lowest Rates, Zero Down
Oregon Housing USDA program for first time homebuyers or exempt veterans in rural Oregon areas featuring below market interest rates.
Program Description
30-year fixed rate USDA mortgage from Oregon Housing for first time homebuyers or exempt veterans. This rural area loan option offers below market interest rates and 100% financing, but has strict purchase price and income limits that vary by county. The property must be located in a designated USDA eligible area of Oregon.
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OHCS Rate Advantage USDA Loan
Min. Credit Score
600
Min. Down Payment
0%
Max Loan Amount
$726,200
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Pros & Cons
- Standalone program with below market interest rates
- Allows up to 50% DTI (Debt-to-Income)
- Also available for manufactured homes
- Income limit and purchase price restrictions apply
- Only available for 1-unit primary residences
- Restricted to USDA areas only
- USDA funding and annual fees apply
Program Availability
OHCS Rate Advantage USDA Loans are available in 1 state.
*Limited Availability: This program is for non-targeted areas, and is not available in Oregon Counties that are considered 100% targeted areas. Properties must also be located in a USDA-designated Oregon rural area.
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“This USDA option from Oregon Housing has great rates and 100% financing, but is subject to considerable income and purchase price restrictions."
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
50.00%
Purchase Price Limit
$349,525 - $497,809
Income Limit
$103,500 - $122,500
Annual Household (1-2) Income
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
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Key Features
- USDA loan program from Oregon Housing for rural areas
- Offers below market interest rates
- Must be a first time homebuyer or exempt veteran
Additional Conditions
- Veteran's Exemption: Eligible Veterans with proof of active duty and honorable discharge via Form DD214 may be exempt from the first time homebuyer requirement
- Can be combined with other down payment assistance programs (non-OHCS)
- Homebuyer education is required only for first time homebuyer(s), including co-borrower(s)
- Co-signer(s) not permitted
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class may be required for this loan program.
Class Name: NeighborWorks Homebuyer Education Class or Other
Homebuyer education is required only for first time homebuyers, including co-borrowers. Education must be completed through an OHCS Homeownership Center, which can be found on the OHCS website.
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
No Mortgage Insurance
This program does not require Private Mortgage Insurance (PMI).
Type: USDA Gurantee Fee
The USDA loan program requires the borrower to pay a funding fee called the "Upfront Guarantee Fee" that is equal to 1.00% of the loan amount and can be financed into the loan.
Type: USDA Annual Fee
The USDA loan charges an annual fee based on the total remaining balance of the mortgage at a .35% rate.
Estimated Closing Costs: 2.5%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
OHCS Rate Advantage USDA Loan Targeted
Best For: First Time Homebuyers, Lowest Rates, Zero Down
Oregon Housing USDA program for targeted rural Oregon areas featuring below market interest rates.
OHCS Rate Advantage Conventional Loan
Best For: Flexible Terms, First Time Homebuyers, Low Credit Scores, Lowest Rates
Oregon Housing Conventional program for first time homebuyers featuring below market interest rates and no mortgage insurance.
Related Resources
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Read MoreVisit our Mortgage Education Center for more resources.
* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
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