My First Home Magazine

PortlandHousingBureau

Looking for an affordable place to live?Looking for an affordable place to live?

Your online search just got easier

www.housingconnections.org can’t get online?

Dial 2-1-1 or 503-802-8562

Search for housing by:• Availability • Schools• Units that accept pets • Accessibility

Housing Connections covers Multnomah, Clark, Clackamas and Washington Counties

Find available, affordable & accessible housing. Housing Connections is a FREE website for renters and home buyers.

MY first hoMe | �

My First Home MagazineA publication of Operation H.O.M.E. to increase homeownership opportunities in

Portland for people of color.

Operation H.O.M.E.222 N.W. Fifth Ave.Portland, OR 97209

Ph: 503-823-4623 • Fax: 503-865-3862www.OperationHOME.net

Operation H.O.M.E. ChairNick Fish

Commissioner, City of Portland

Editorial Advisory BoardJavier Alomia

Sara LibbyOmar MartinezChiEn Montero

Shannon PratuchCheryl RobertsFernando Vélez

Video Production John Cárdenas Art Hendricks

Publisher Ken Raddle Design SCP LLC Writers Amalia Alarcon- Morris Nicci Boots Amy Fauver Jon Gail Art Hendricks Gary Majors Jon Miller Fernando A. Vélez Kate Verotsky Nancy Weber Reproduction in whole or in part is prohibited without written authorization by SK2R Publishing. ©2009 SK2R Publishing

6700 SW 105th, Suite 210Beaverton, OR 97008

P: 503.941.9513 • F: 503.9527

CONTENTS

Looking for an affordable place to live?Looking for an affordable place to live?

Your online search just got easier

www.housingconnections.org can’t get online?

Dial 2-1-1 or 503-802-8562

Search for housing by:• Availability • Schools• Units that accept pets • Accessibility

Housing Connections covers Multnomah, Clark, Clackamas and Washington Counties

Find available, affordable & accessible housing. Housing Connections is a FREE website for renters and home buyers.

SUCCESS STORIESThe Montejo Family ................14The Johnsons ............................15Jackie Blackbird .......................34

Message from Nick Fish ............4

Open the Door to

Homeownership. ........................5

Homeownership: What’s In It For Me ...................6

First Steps ....................................8

Get Smart .................................10

Fact or Fiction? ...........................11

Beating the Barriers ................. 11

Improving Your Credit Score ..12

The Power of Saving .................13

Nonprofit Resources Guide ....16

An Agent can Help You Navigate the Process ...............21

Choosing the Right Home ........22

City Map ...................................24

Dream Builders; Green Builders; Home Builders ..........................26

Getting to Know Your Community ..................... 30

Ask the Lender...........................32

Home Inspection .......................33

Title and Escrow ........................35

Is There Any Money Out There? 36

Do’s and Don’t’s for Homebuyers .......................38

The City can Help you buy a Foreclosed Home ..................39

Smooth Move ......................... 40

Foreclosure, You can Avoid it! ....42

Glossary of Terms ................... 44

Homeownership Resource Directory ...................47

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A Message to My First Home ReadersCongratulations on taking this

important step toward homeownership! By doing so, you are now much more likely to be a successful and long-term homeowner.On behalf of City of Portland, I am

pleased to sponsor the My First Home Homebuyer Guide. My First Home provides information about the services and resources that are available to you from the City of Portland and our many wonderful partners. It was created to help first time homebuyers like you overcome barriers and pursue their dream of homeownership in Portland. The recent launch of the new Portland

Housing Bureau will further our work in

homeownership. This new powerhouse bureau will bring together expert housing staff from the former Bureau of Housing and Community Development and the Portland Development Commission to help the City reach its homeownership goals and ensure broad access to many housing resources…all under one roof! One innovative program to watch

for is the new Own Your Own Loan Program, which will help income eligible homebuyers increase their buying power by providing financial assistance to purchase a foreclosed home. In this magazine you will learn more about this program and the many others that might be the right fit for your needs.

Everyone deserves the chance to learn about purchasing a home. It is my hope that here you will find the information you need to help you realize your dream of homeownership.

Sincerely, Nick FishCommissioner

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Nick Fish, Commissioner

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Open The Door To Homeownership

DEPENDING ON YOUR RACIAL AND ethnic background, your odds of owning a home in Portland differs significantly. The homeownership rates for African Americans, Hispanics and Native

Americans in Portland are 20 to 30 percent lower compared to white households.

As a result of these large gaps, there is also a huge gap in home equity, which is most people’s largest financial asset. According to the Regional Multiple Listing Service, the median-priced house

in the Portland metropolitan area rose from $79,900 in 1990 to $278,000 by the end of 2008. This opportunity to increase equity in homeownership and the potential wealth of ownership has largely passed by people of color.

To address these differences, Operation H.O.M.E. (Home Ownership and Minority Equity) was launched in

the summer of 2006. Operation H.O.M.E. is a 10-year plan, begun by former Portland Mayor Tom Potter, to close the homeownership gap for people of color.

My First Home Magazine is an Operation H.O.M.E. strategy to educate consumers and to encourage more people of color to purchase a home. In this magazine you will find information from organizations that are committed to helping people of color and anyone else who is struggling to own a home of

their own. We hope the following articles, nonprofit profiles, success stories

and tips will serve to inspire and inform you about the many people and organizations in Portland who are committed to helping you purchase a home of your own.

My First Home Magazine is an

Operation H.O.M.E.

strategy to educate

consumers and to encourage

more people of color to

purchase a home.

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HomeownershipWhat’s in it for me?

BECOMING A HOMEOWNER is a life-changing event. Overnight, your whole financial

picture changes. And along with the keys to a newly-purchased home comes a lot of new responsibilities. Before you decide to buy, you should carefully consider both the advantages and disadvantages of owning a home. We’ve outlined just

a few examples for you here.

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Homeownership

Advantages of OwningTax benefits

For first-time homebuyers who purchase a home by November 30, 2009, the IRS is offering income eligible homebuyers an $8,000 fully refundable tax credit. You can even get the money before you file next year by filing a 2008 amended return. If you end up buying after the deadline it would be a good idea to check with the IRS to see if they have extended this tax credit.

In addition to the $8000 tax credit some homebuyers are eligible for the Mortgage Credit Certificate Program administered by the Portland Development Commission. This federal tax credit program provides income eligible first-time homebuyers a tax credit. The credit equals 20 percent of the first mortgage interest paid annually.

Equity Another advantage of owning a home

is that as you begin to pay off your mortgage loan, you build equity in your property. Equity is the value of your home minus how much you still owe on your mortgage. This equity is an asset that can be used as collateral for a new loan or when you sell your home. Many first-time buyers are able to use the equity in their first home to trade up to a nicer or larger second home.

Invest in your future A home is usually a good investment.

If properly maintained, the home should increase in value over time. Compared to other long-term investments, homeownership is usually a good bet. Homeownership is also a great way to get control of changing housing costs and you get to benefit from any improvements you make that add value to your property

When you finally get the keys and open that door

for the first time, you’ll have secured a place in

this world that you really call “home.”

Pride of ownershipWhen you finally get the keys and open

that door for the first time, you’ll have secured a place in this world that you really call “home.”

Disadvantages of OwningHigher monthly payments Your monthly mortgage payment, most

likely, is going to be more than your rent. However, these higher monthly payments may be offset by a tax benefit at the end of the year. (You’ll need to talk to a tax professional to understand your particular situation.)

Appreciation is not guaranteed Property values can depreciate. You

can lose value in your home for a number of reasons such as a recession, if your home is not kept in good condition or if there is a drop in your neighborhood’s home values. If your home loses value and you have to sell it for less than you owe, you are still required to repay the full mortgage.

Time and cost to sell If you have to sell your house and move,

it’s going to take time and cost you money. Depending on the current real estate market, you might not be able to sell your home quickly. You also need to factor in the likely expenses of hiring a real estate professional and other costs incurred when selling a home.

Maintenance responsibility You become your own landlord. If an

appliance breaks, you have to pay for its repair or replacement. You are also responsible for the maintenance and upkeep of your home — inside and out — as well as the land.

Source: Portland Development Commission

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Advice to get, and keep, you on the path to a home of your own

WANT TO BUY A HOME, BUT you have no idea about where to start and in what order to do

things. The better you understand the order and steps of the home-buying process, the more likely you are to have a good home-buying experience. Here is a quick overview of a typical home-buying process so you won’t be surprised at every twist and turn on your way to a home of your own.

1. You decide you want to settle down and it’s time to start looking into buying a home.

2. You take some homebuyer workshops and homebuyer counseling.

3. After some classes, you still feel that buying a home is right for you.

4. You analyze your financial situation. Review your budget, examine your credit standing and decide what you can afford to spend for a home.

5. You shop for a lender by comparing loan programs and good-faith estimates. A GFE shows you the cost and payments of a specific loan option from a particular lender at that point in time.

6. You select your lender, gather your documentation and submit an application for a mortgage.

7. The lender reviews your application and documents, and approves your application. Make sure you get a letter from the lender stating the maximum loan amount and purchase price that is preapproved.

8. You research, interview and select a Realtor.

9. You narrow down the type of home you want and the area where you want to live to begin shopping for a home within your affordable price range.

10. You find the “perfect” house, make an offer and negotiate a sales price.

11. You sign a “real estate sales agreement” and furnish a check for an earnest money deposit. The clock starts ticking toward a closing date, which may be only 30 or 45 days away.

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Source: Portland Development Commission

12. You have the home inspected for its overall condition and needed repairs including a pest and dry rot inspection.

13. Your lender orders an appraisal to determine the property’s value to support the loan amount.

14. You shop for and obtain homeowner’s insurance.

16. The real estate transaction is processed and closed. Around the same time, certain closing tasks are completed by a closing agent, the seller and the buyer: • The closing agent prepares all documents and coordinates the signing of documents, the transfer of money and the transfer of ownership.

• The seller provides a clear title, the deed to the property and must fulfill any other terms of the purchase agreement.

• You provide proof of insurance. You pay the down payment and closing costs.

• The lender funds your loan once all parties involved in the transaction sign all necessary documents.

17. You get the keys and move into your home.

18. You take care of your home. You make your monthly payments on time every month.

15. Your lender notifies the escrow company (closing agent) that your loan is ready to close. The escrow company then informs you of the amount of funds you should bring to closing. You obtain a certified check from your bank for the closing costs.

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The best organizations and staff also are aware of the many programs that help first-time buyers and can help you connect with the lenders and real estate professionals who have the expertise or experience to suit your situation or needs.We are very fortunate in Portland to have

many terrific homebuyer education and counseling providers. There are a number of nonprofit agencies

in Portland that can help you learn more about buying a home. These organizations and their unique approaches to education, counseling and other strategies can help you purchase a home of your own the “classy” way. You can learn more about these

organizations, the services they offer and how to contact them in the organization profiles on pages 16 through 20. ➲

THE DEFINITION OF “CLASSY,” according to Dictionary.com, is “of high class, rank, or grade; stylish;

admirably smart; elegant.” So just how do you get through the home-

buying process and come out feeling even remotely smart or elegant? After all, you are a first-time homebuyer and you have never been through the process before.Furthermore, unless you are in the business you really don’t even need to know this stuff day in and day out. So here’s the short answer on how to buy a home the “classy” way: homebuyer education and counseling.

Homebuyer education and counseling is the key to getting your home-buying plan off to the right start. If you skip this step, you’ll be on your own — flyin’ solo. But with a good homebuyer education

class under your belt and a homebuyer counselor on your side, you won’t be wondering if you made the right moves. With the knowledge from the homebuyer education class and the help of staff from a local agency or nonprofit, you’re more likely to know which questions to ask, what to look for, who does what and who to call for straight answers.

Knowledge really is powerBy Jon Gail

Get Smart

Program Manager Michelle Puggarana teaching a class at the Portland Housing Center.

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The following local nonprofits offer homebuyer education and counseling:Acorn Housing Corporation www.acornhousing.org 503-788-9989

African American Alliance for Homeownership www.aaah.org 503-595-3517

Clackamas Community Land Trust www.clackamasclt.org 503-654-1007

Community Housing Resource Center www.homecen.org 360-690-4496

Hacienda Community Development Corp. www.haciendacdc.org 503-595-2111

Native American Youth and Family Center www.nayapdx.org 503-288-8177 Ext. 232

Open Door Counseling Center www.opendoorcc.net 503-640-6689

Portland Housing Center www.portlandhousingcenter.org 503-282-7744

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in employment over the past two years. Most lenders will also count any time you spent getting a college degree as work experience as long as you end up working in that field. If you are self-employed, it is very important that you have been so for at least two years. If your income is from self-employment, commission-based or seasonal work, you need to provide a two-year track record of this income to qualify for most home loan programs.

Myth: First-time homebuyers have never owned a home before. Fact: Not true. Most first-time homebuyer programs define a first-time homebuyer as someone who has not owned and occupied a home in the past three years. Therefore, even those who have owned a home more than three years ago are considered first-time homebuyers. �

Myth: You need perfect credit to buy a home. Fact: Not true. A great credit history will certainly help you get a loan, but you may be able to buy a home with less-than-perfect credit. The more time that has past since the problems have been resolved, the better. If you have no credit history, many lenders may still approve you for a home loan. A lender can help you build an alternate credit history by getting proof that you have paid utility bills, rent, insurance and other expenses on time for the past 12 months. And remember, even if you have blemished credit you can improve your credit over time by paying your bills on time, keeping your credit card balance low and by paying off any past due or collection accounts as soon as possible. Get a free copy of your credit report at annualcreditreport.com.

Fact or Fiction?Myth: You need a 20-percent down payment to buy a home.Fact: Not true. For example, many loan programs only require a down payment of 3.50 percent. Often, the funds you use for your down payment can even come from others such as a gift from a family member. Keep in mind that you still need to have funds saved to pay your portion of the closing costs. Some lenders also may want to see that you have enough in savings to cover a few months of house payments after closing.

Myth: To get a home loan you need to be in the same job for at least two years. Fact: Not true. You can change jobs several times in recent years and still get a loan to buy a home, provided you stay in a similar line of work. The important thing is to show a stable income without large gaps

There are lots of myths about buying a home. We help you sort through a few of the common ones.

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of increasing how much house you can afford to buy. Finally, consider homes sold by local nonprofits. In many cases they are able to provide you with affordable options not widely available in Portland.If you are facing any or all of these

barriers, you are not alone. Fortunately, there are quite a few local organizations and programs that can help you overcome these common challenges. Learn more about them in the Nonprofit Resources Guide, pages 16 through 20, and how they can help you beat the barriers. ➲

Beating The BarriersBUYING YOUR FIRST HOME

is the hardest one to buy. First-time homebuyers generally

do not have the same advantages as seasoned homebuyers. Common barriers include not knowing where to start, needing to resolve credit issues, not having enough cash to close the transaction, lower credit scores, or not being able to afford a decent home.

Don’t Know Where to Start or Need Help Resolving Credit Issues?

There are many local organizations that offer prepurchase homebuyer counseling, education and homebuyer fairs. By taking advantage of these local educational opportunities early in the process, you’ll have access to accurate, honest and unbiased information to help you get ready to buy. In addition to education, most of these agencies also offer help in sprucing up your credit as well.

Not Having Enough Cash to CloseWe all know it is hard to save money.

Fortunately, many lenders will permit others to pay some or all of your closing costs and down payment depending on your credit score and the loan program. Such options include down payment assistance loan programs, gifts from family members, individual development accounts and seller-paid closing costs to name a few.

Can’t Afford a Decent HomeUnfortunately, there is a growing gap

between incomes and home prices. To combat this common barrier you’ll need the help of programs that increase your purchasing power and lower your house payments. Home loan programs that offer below-market rates, reduce or eliminate the cost of mortgage insurance or temporarily reduce the interest rate are good options to consider. Tax credit or exemption programs are also good ways

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Length of credit history • If you have been managing credit

for a short time, don’t open a lot of new accounts too quickly. New accounts will lower your average account age, which will have a larger effect on your score if you don’t have a lot of other credit information.

New credit • Do your rate shopping for a given

loan within a focused period of time. FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part, by the length of time over which inquiries occur.

• Re-establish your credit history if you’ve had problems. Opening new accounts responsibly and paying them off on time will raise your credit score in the long term.

• It’s OK to request and check your own credit report. This won’t affect your score, as long as you order your credit report directly from the credit-reporting agency or through an organization authorized to provide credit reports to consumers.

Types of credit • Apply for and open new credit

accounts only as needed. Don’t open accounts just to have a better credit mix — it probably won’t raise your credit score.

• Have credit cards, but manage them responsibly. In general, having credit cards and installment loans (and paying on time) will raise your credit score. Someone with no credit cards, for example, tends to be a higher risk than someone who has managed credit cards responsibly.

• Note that closing an account doesn’t make it go away. A closed account will still show up on your credit report, and may be considered in the score.

Source: Copyright © Fair Isaac Corporation. Used with permission. For more information about credit scoring, improving and managing your credit, getting your free credit reports(s), etc., go to www.myfico.com.

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CREDIT SCORES GIVE LENDERS a fast, objective measurement of your credit risk. Credit scores, especially

FICO (Fair Isaac Corp.) scores, are the most widely used scores. FICO scores range from 300 to 850. The higher your score, the better.

It’s important to note that raising your FICO credit score can take time and there is no quick fix. In fact, quick-fix efforts can backfire. The best advice is to manage credit responsibly over time. The following tips can help you raise your credit score — and save money in the long run.

Payment history • Pay your bills on time. Delinquent

payments and collections can have a major negative impact on your score.

• If you have missed payments, get current and stay current. The longer you pay your bills on time, the better your credit score.

• Paying off a collection account will not remove it from your credit report. It will stay on your report for seven years.

• If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor. This won’t improve your credit score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.

Amounts owed• Keep balances low on credit cards and

other “revolving credit.” High outstanding debt can affect a credit score.

• Pay off debt rather than moving it around. The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.

• Don’t close unused credit cards as a short-term strategy to raise your score.

• Don’t open a number of new credit cards you don’t need just to increase your available credit. This approach could backfire and actually lower your credit score.

Improving Your Credit Score

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The Power of SavingMoney-match program helps your hard-earned dollars add up even faster

DID YOU KNOW YOU CAN quadruple your savings with a matched savings account from

the Oregon Individual Development Account (IDA) Initiative? It’s true. An IDA can help you build your savings faster and keep you on the path to homeownership.

What is a matched savings account?An Individual Development Account,

or matched savings account, is a savings account — in your name — where you can save for an approved goal. Every $1 you save is matched with an additional $3. So your $1 becomes $4, $10 becomes $40 and so on.

IDAs are an innovative way for you to gain greater financial security. You will learn saving and budgeting skills and receive a match on your monthly savings that can be applied toward the purchase of an asset such as a home. While buying a home is a popular use, IDAs can also be used for other purchases.

You can also use your savings to:• Start a business• Go to school• Repair or modify your existing

home to make it accessible• Purchase equipment or technology

that will allow you to work

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By Amy Fauver

Am I eligible?You may be eligible for an IDA if you:• Are income qualified• Are an Oregon resident• Want to learn how to better manage

and save money• Can deposit money each month

toward your goal

How do I get involved?Several organizations in the Portland

area offer IDAs to qualified persons. You can check out your options online to find the one that’s right for you. Visit http://ida.tnpf.org for more information. �

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When Louis Montejo arrived in the United States from Cuba in 2005 with his wife and two children, he was eager to work hard in exchange for the security, dignity and pride that comes with the American dream’s most tangible symbol – a home of his own. Unfortunately, it’s a goal that at first glance appears beyond

the reach of many a deserving immigrant family, due to the staggering challenges presented by language barriers and the complex buying process, not to mention the difficulty of saving a down-payment on a working-class salary. It’s enough to make even the most ambitious new arrival give up hope. Undaunted, Montejo made an appointment with a local

lender in 2006 and one year later, realized his dream of homeownership through the support of several local agencies including the Portland Housing Center and Hacienda Community Development Corporation’s Homeownership

At Home with the American Dream

Program.The Hacienda Program works closely with the Portland Development Commission to develop affordable housing and create healthy communities for working Latina families. Participants of Hacienda’s homeownership program are offered services including homebuyer education, individual counseling and the opportunity to participate in an Individual Development Account (IDA), which matches funds saved by the buyer toward the down payment on a home. Since the successful purchase of his home, Montejo

enthusiastically recommends these same programs to friends and family. “It’s very important that anyone seeking homeownership take similar steps to prepare with education and counseling through the Hacienda Program and the Portland Housing Center,” he stresses. “It would not have been possible for me to realize this dream in my country – only in America,” he says proudly.

Visit www.myfirsthomepdx.com to watch related videos and read the magazine online.

Story By Kate Verotsky The Montejo Family


The Johnsons

Story By Nicci Boots

Optimism Fuels HomeSearch

didn’t have any homes within their price range. But they knew it was just another step in the process they needed to get past, so they decided to move back to New Columbia, find an affordable apartment and keep saving money for their future home.As the family prepared to make their next move, they received

the phone call that would change their lives. Due to a sale that fell through, a HOST home had just become

available, and it was at a price the Johnsons could afford. Charode and Jenee went to tour the house and immediately knew they had found the home they wanted.“We’re sure that we made the right choice — we just love

this neighborhood,” Charode says. “And the house seemed made for us.”The location was just what the family needed, and HOST was

just the program to help them wrap up the home-buying process. That next month, HOST provided the Johnsons with a check for closing cost assistance. They combined it with their loan money to make the purchase complete. They are truly grateful for the help all of the programs

supplied them, Charode says. There were bumps in the road along the way, but they were bumps easily overcome with help through HOST, PDC, AAAH and others, he notes. That’s why Charode urges other first-time homebuyers to take advantage of all that is available.“This was just so smooth and easy that we were in awe — and

the ease is what really kept us going,” he says. “Be patient and enjoy the process of getting into a new home; because if you don’t, you won’t appreciate moving into it as much as you can.”


Charode and Jenee Johnson knew that if they wanted to own a home, they needed to get to work, and fast. Home prices were steadily on the rise in the Portland area, and it seemed imperative they get out of the rental situation they were in and find a larger home for the family to enjoy.The Johnsons and their children, Keenan, Mataya and Natalya,

had lived in a New Columbia apartment for some time, always with the hope they would someday own a house. “It’s always been a dream of ours,” Charode says. “We rented for all those years, but we always wanted to get out of it.”In August 2007, the family got a feel for home living when they

relocated from their apartment and began renting a friend’s house. Soon after their move, though, the friend decided to sell, and he offered it to the Johnsons for a reasonable price.The couple were eager to make the purchase, but they knew it

would be smart to take their time, look into every option and see what financial assistance was available. Charode and Jenee’s optimism quickly grew. At a community

festival, the couple found the Portland Development Commission (PDC) and other local programs that offered extensive financial and educational resources. They then elected to attend a class put on by the African American Alliance for Homeownership (AAAH). It was that class that prepared them for the process ahead.Another crucial step came when the couple met with PDC loan

specialist Kari Hernandez. She helped the Johnsons understand their options and select the right loan program that best met their needs. The couple decided to get preapproved for a loan through the PDC, then got to work on the application.The loan amount the Johnsons qualified for was helpful, but it

was not quite enough to buy their friend’s home in North Portland. But it didn’t deter the family and they quickly began looking into other options.They had seen the Home Ownership a Street at a Time (HOST)

Development company building homes in their former New Columbia neighborhood, and were excited to see if there was a reasonably priced unit available for them to buy. “We loved the community that we lived in, especially since we’d

seen the whole thing built from the ground up,” Charode says. At first, the Johnsons were disappointed to learn that HOST

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The BeginningStarting in late 1999, the Asian Pacific Island Community

Improvement Association (APICIA) functioned as an ad hoc committee known as the Asian Home Buying Association (AHBA). The Portland HUD office, with support from Key Bank, convened the first series of the committee’s planning meetings.Partnering with the Portland Housing Center, an established

nonprofit housing organization, APICIA is engaged in organizing and hosting home-buying fairs and educational workshops targeting the Asian and Pacific Islander community and limited English-speaking Asian populations. Before APICIA existed, the needs of these groups were not effectively met and their ability to access home-buying information was severely limited. APICIA sponsored its first Asian Home Buyer’s Fair in 2000 and

has successfully presented these fairs on an annual basis, reaching

Committee Grows to Serve Community

increasing numbers of fair attendees each year. Workshops have been presented in different Asian languages including Hmong, Laotian, Chinese, Thai, Korean, Vietnamese and Tagalog (Philippines), as well as Russian and English. The workshops are free to the public and are supported by public funds and sponsorship fees. These funds have helped APICIA initiate a down payment assistance

program, providing up to $750 per qualified family. Additionally, the city of Portland awarded funds to APICIA from the Bureau of Housing and Community Development (BHCD) American Dream Down Payment Initiative (ADDI). The funds helped provide low-income families financial assistance of up to $10,000 per qualified family to cover down payment assistance and closing costs. The FutureTo expand its efforts and increase its effectiveness, APICIA’s ad hoc

committee established itself as a nonprofit organization in 2004. Through the formal formation of APICIA, the new organization intends to expand its programs and services and address the housing and community development needs of the API community. While the primary focus of its activities will be on the API community, all fairs and resources are available to qualified members of the public.Learn more about APICIA at www.apicia.org or call 503-334-2915.

503-334-2915 • www.apicia.org

African American Alliance for Homeownership (AAAH) is a nonprofit 501(c) 3 community-based organization. The AAAH Board of Directors comprises housing and business professionals who volunteer their time to ensure the goals of the organization are successful. Our mission is to increase homeownership and economic stability

for African Americans a nd ot her under ser ved individuals by

The African American Alliance for Homeownership

improving access, ensuring advocacy and providing awareness and education. AAAH is a HUD-certified housing counseling agency under the Mission of Peace National Housing Counseling Intermediary. Since 1999, AAAH has been successful in stimulating home-

buying activities and resources through innovative programs such as the Homebuyer Coaching Project, the Annual Homebuyer Fair, Individual Development Accounts (IDA Program), One-on-One Homebuyer/Credit Counseling, Monthly Homebuyer Education Classes, MHAC Financial Assistance, and Mortgage Foreclosure & Loss Mitigation Counseling. To date, AAAH has assisted over 500 individuals and families in achieving their dream of homeownership. If you would like more information about AAAH, or to

enroll in one of our programs, contact us at 503-595-3517 or [email protected]. You can also log onto www.aaah.org.

503-595-3517 • [email protected]

It’s Within Your Reach


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Hacienda creates ‘living communities’

Hacienda Community Development Corporation develops affordable housing and builds thriving communities in support of working Latino families and others in Oregon by promoting healthy living and economic advancement.Hacienda CDC is a leading affordable housing organization.

Hacienda has served the Latino community since 1992 and expanded last year into other complementary program areas such as homeownership education and counseling, health awareness, after-school education and community building resident programs. Hacienda’s motto is Comunidad Viva – A Living Community.Hacienda is a HUD Housing Counseling Agency through its

affiliation with the National Counsel of La Raza (NCLR), the city of Portland and the state of Oregon, which has given the organization

the means to diversify its services in the affordable housing field. Hacienda provides access to a complete package of bilingual financial and homeownership counseling services comprised of homebuyer education and financial literacy classes as well as personal one-on-one counseling. Hacienda also offers Individual Development Accounts (IDA).

These savings accounts offer a 3-to-1 match for participants preparing and saving for homeownership. Each dollar the qualified participant saves is matched with another

$3 from the IDA program. Hacienda’s annual Latino Homebuyer Fair provides the Latino

community with trusted information and resources available in achieving homeownership.Hacienda CDC continues to be a leader in building a regional

home ownership initiative for the Latino community in Portland. Hacienda’s reputation and experience in affordable housing have earned the organization the confidence and credibility to work with HUD, the state of Oregon, the city of Portland and other partners to close the minority homeownership gap. For more information about Hacienda CDC’s annual home-

buying fair, counseling, workshops and related services, please call 503-595-2111, ext. 512, or visit www.haciendacdc.org.

503-595-2111 • www.haciendacdc.org

The Latino Home Initiative was formed in 2005 by a small group of volunteers, all with the same passion: to close the homeownership gap for Latinos and other individuals and families. The Latino Home Initiative hosts an annual homebuyers fair in

September with a variety of informational booths, from housing to employment opportunities, for community members to come and enjoy. Each year, families are given the opportunity to receive a grant in the amount of $5,000 or $10,000. Awarding these monies is possible through the sponsorship of many organizations that believe in the mission of the Latino Home Initiative. Through education (by partnering with the Portland Housing Center) and down payment assistance grants, the Latino Home Initiative has helped more than 30 families purchase their first home.

Latino group’s passion helps close ownership gap “The day I attended

the Latino Home Initiative’s Abriendo Puertas fair is a day I won’t forget,” says Maria Rivera, a recent homeowner. “When we arrived, I got familiarized with different agencies and attended the different informative sessions on how to buy a home. We were one of many families to win a raffle prize of $5,000 toward the purchase of a home. We were all excited, especially my children. They enjoyed all the different activities at the fair and they were ready to buy a home that very same day.”The 2009 homebuyers fair on Sept. 26 will once again be held

at the Portland Community College Southeast Center located at Southeast 82nd Avenue and Division Street. With the assistance of our sponsors, we will award grants to some families so they, like Maria, can own a home.For more information, you can call Maabi Munoz, Latino Home

Initiative chair, at 503-975-5724 or visit the LHI Web site at www.latinohomeinitiative.com.

503-975-5724 www.latinohomeinitiative.com


Owning your own home can move from a dream to a reality – and the Native American Youth and Family Center can help! Our dedicated Homeownership Program staff provide services to meet our community’s need for safe, affordable housing and works to increase homeownership opportunities for Portland’s thriving Urban Native American community.

Our homeownership staff start by meeting with you individually to identify your steps to homeownership and continue by providing the supports you need to complete each one. We provide individualized home buyer coaching and Pathways Home our culturally specific Homebuyer Education Class; and referrals to financial resources, down payment assistance and loan programs, including the Section 184 Indian Home Loan Guarantee Program. Our strong partnerships with Portland’s foremost nonprofit homeownership organizations and financial institutions ensure you have the best options to choose from. In addition, we tailor our services to fit your income, tribal affiliation, family size, and location. Please visit our website for a current class schedule and to set up a meeting with Sharon Sanders, our Homeownership Coach.

NAYA Family Center also provides culturally specific Tax Assistance, Financial Wellness Education and a Homeownership IDA

NAYA Family Center Supports Native American Homeownership and Housing Stability

(or Individual Development Account). An IDA is a long-term savings account designed to help you save for your first home by matching your savings deposits three to one. For example, if you deposit $25 dollars in your IDA savings account, we will match it with $75! With an IDA, the more you save the more match money you get to help buy your home. Contact us for program qualifications and terms.

Every year we host the Native American Housing to Homeownership Fair on the last Saturday in July. This day-long family event features fun, informative workshops on housing and homeownership and specific resources for the Native community. You can meet and talk with representatives from local banks, nonprofit homeownership organizations and realtors and eat a delicious lunch — all for free!

Serving over 1,400 youth and their families yearly with comprehensive, culturally specific programming, NAYA Family Center is committed to increasing Native American family stability in the Portland Metro area. We are an equal housing opportunity provider and welcome all of Portland to utilize our services.

For more information on NAYA Family Center’s Homeownership Program, contact Sharon Sanders at [email protected] or 503-288-8177 ext. 223 or visit us on the web at www.nayapdx.org. Our offices are located at 5135 NE Columbia Boulevard in Portland, Oregon.

503-288-8177 • www.nayapdx.org

Where can first-time homebuyers receive education, meet trusted professionals and obtain financial help to buy their first home? The Portland Housing Center! PHC was founded in 1991 on the belief that everyone deserves access to homeownership.

The center provides quality education, counseling and financial services, and has helped more than 5,000 families in the Portland area purchase their first home.

To get started, buyers attend a free orientation, where they hear success stories and learn about resources to help make wise consumer choices. Local down payment assistance programs and grants are covered. Community Homeownership Trainer Itzel Spehar says, “Our informal orientation is fun – a great way to learn about the steps to homeownership in a no-pressure environment.”

PHC’s services include HomeBuying 101, an interactive class where trusted industry professionals teach the home-buying process.

Portland Housing Center: A Wise Choice

“This class is invaluable. It gives homebuyers the tools they need to make educated decisions, be comfortable with the buying process and understand their options,” says Program Manager Michelle Puggarana. PHC offers classes in money management and planning a home purchase. The program also guides buyers through a document review to make sure they confidently understand loan terms and payments.

Money for down payment and other costs doesn’t have to be a barrier to purchasing a first home. The PHC IDA Matched Savings Program helps buyers save money with a 3:1 match for each dollar saved; this can result in up to $9000 for a down payment. The Mortgage Assistance Program (MAP) provides low fixed interest rate 2nd mortgage of up to $50,000 to help make home purchase more affordable through eliminating mortgage insurance, says PHC Fiscal Manager Michele Cruse. PHC also provide a range of financing options including conventional and FHA loans.

The Portland Housing Center, a member of the NeighborWorks America Homeownership Center Network, was ranked the nation’s No. 1 affiliate in creating new homeowners in 2006. PHC is a HUD Certified Housing Counseling Agency and classes are available in Spanish and English. To learn more, call 503.282.7744, visit www.portlandhousingcenter.org or come by the office at 3233 N.E. Sandy Blvd. in Portland.

503.282.7744 www.portlandhousingcenter.org

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resale, plus their down payment and mortgage principal. (note: this estimate is based on our resale formula and March ‘09 zillow.com estimates; not based on actual resales.)

Who buys through Proud Ground? Parents with children, grandparents, young couples, single folks – all kinds of people. Proud Ground homeowners have steady incomes and can qualify for a traditional 30-year mortgage, but they do not have incomes that are high enough to purchase a home the traditional way even in today’s market. Proud Ground homeowners all share an important goal: to own a home of their own.

We’d like everyone to be able to enjoy market-rate homeownership. For those unable to access traditional homeownership, Proud Ground offers a sure road to equity. Want to get started? Please contact us at 503-493-0293, x10 or e-mail [email protected].

Proud Ground is a nonprofit organization that provides affordable homeownership opportunities for people who work and live in our community. Working with community partners, lenders, builders and others, we:

• Prepare families and individuals for homeownership.• Help them purchase existing homes.• Build new, affordable homes.• Offer homeowners tools to be successful.In exchange for a reasonable purchase price (our average home

price in 2009 will be about $150,000), Proud Ground and the homeowner enter into a legal agreement upon purchase. This agreement ensures that, if a homeowner decides to sell, the home resells at a price working families can continue to afford, while providing the seller with a return on her investment. On average, a Proud Ground homeowner of 5+ years would earn $25,000 at

5288 N. Interstate Ave.

503-493-0293 www.proudground.org

Buying your first home is easier than you think! ROSE Community Development is a community-based nonprofit with 17 years experience producing quality housing at affordable prices in outer Southeast Portland, including the Lents Town Center Urban Renewal Area.

ROSE has built and renovated homes for sale for families with children, senior citizens and those with disabilities. In addition to homeownership, ROSE provides affordable homes for rent, works to improve child care and supports a variety of other community

improvements. ROSE gives families a secure place to build lives, raise children and feel like part of the neighborhood.

Currently, ROSE is marketing the Woodmere Condo Homes – newly built condos located a few blocks from Woodmere Elementary School on Southeast 81st Avenue and Duke Street. These spacious three-bedroom homes are priced at $169,900 and include a one-car garage, natural gas heat and hot water, and a range, refrigerator, dishwasher and garbage disposer. In short, they’re ideal for families or individuals.

When you buy a house with ROSE you are buying a house in a great neighborhood with lots to offer: a diverse population, top-rated schools, large natural attractions, community recreation amenities, and the new Tri-Met rail line.

If you would like to learn more about East Portland, please join us at the annual East Portland Homeownership Fair. This free annual spring fair is a fantastic resource to learn about homeownership and offers a free raffle for a home buyer’s assistance grant.

Please call us at 503-788-8052 or visit our website www.rosecdc.org to find out what ROSE has to offer.

ROSE believes that every family deserves a safe and decent place to live.

We work to revitalize Outer Southeast through building affordable housing.

503-788-8052 •www.rosecdc.org

CommunityDevelopment

Building a Better Southeast Portland


As the oldest Habitat for Humanity affiliate on the West Coast, and the largest in Oregon, Portland Habitat for Humanity has served low-income, hard-working Portland families for over 25 years. Portland Habitat for Humanity homeownership is unique, since we serve many families whose income level is not high enough to qualify for other homeownership programs. Partnering with the community, Portland Habitat for Humanity

builds decent, affordable homes, which are then sold at cost with a zero-interest mortgage to families who qualify for our program. Their mortgage payments — payments that are often lower than what they were paying in rent — go into a revolving “Fund for Humanity” that is used to build more homes in the Portland area.Families need to meet the following criteria in order to qualify for

consideration of Habitat for Humanity homeownership:

Portland Habitat for Humanity: Hope Builders

• Earn 30 to 60 percent of the median Portland household income (for example, about $20,350 to $40,750 annually for a family of four).

• Currently live in public subsidized or substandard housing (overcrowded, unsafe or with a family spending more than 50 percent of gross monthly income on rent).

• Demonstrate the ability to purchase a home based on good credit history, a steady income and a solid work history.

• Commit to 500 hours of sweat equity working on their own home as well as other Habitat homes.

• Be a resident of the Portland area for at least six months.

• Be a U.S. citizen or legal permanent resident.

Habitat homeowners are committed and successful. Portland Habitat for Humanity has experienced less than a 1 percent default rate on mortgages, lower than the national average. By providing a hand up, not a handout, the Habitat program maintains the dignity and pride of our homeowner families.Please call us at 503-287-9529 for more information or

visit www.pdxhabitat.org.

503-287-9529 • www.pdxhabitat.org

So you’re preparing to buy your first home. That is wonderful news and congratulations for all the hard work it’s taken to get you to this point. At the Fair Housing Council of Oregon (FHCO), we don’t want to see your hard work, your savings, your determination — your dreams — squandered by the very real and very harmful effects of illegal housing discrimination.This is an exciting and celebratory time for you, but even as you apply

for a mortgage and interview for a buyer’s agent, as you make an offer and look for a home insurance policy, even as you get to know your new neighbors, we want you to know what housing discrimination is and to know that free resources are available to you. Forty years ago, the Fair Housing Act was enacted to protect

consumers from housing discrimination based on certain protected classes. This original federal law, followed by subsequent addendums as well as state and local laws, protects every housing consumer in any housing transaction if discrimination is based on race, color, national original, religion, gender, familial status, disability (federal), marital

Nonprofit works to erase housing discrimination

status, source of income, or sexual orientation (Oregon). Housing discrimination may take the form of less favorable loan

or insurance terms, or being told that homes aren’t available when they really are, or being steered toward certain neighborhoods or school districts, or being treated differently by neighbors or sellers. Unfortunately, decades after the Fair Housing Act was passed, you may experience illegal housing discrimination. It may be subtle or it may be painfully blatant; either way, if you feel you’ve been treated differently than others because of any of the protected classes listed, please call the Fair Housing Hotline, 503-223-8197, to report it and allow us to assist you in what should be a momentous and joyful experience in your life.Jo Becker is the education/outreach specialist with the Fair Housing

Council, a nonprofit serving Oregon and Southwest Washington. Its mission is to eradicate housing discrimination through education, outreach and access to enforcement in order to ensure housing is available to all without regard to protected class status.Questions …… about your rights and responsibilities under fair housing laws?Visit FHCO.org or call 503-223-8197 or 1-800-424-3247 (TTY) … about this article?Want to schedule an in-office fair housing training program or

speaker for corporate or association functions? Contact Jo Becker at [email protected] or 503-453-4016.…about searching for a home to rent or buy? Search online for free across the Portland/Vancouver market at

www.HousingConnections.org.

503-223-8197 • www.fhco.org

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20 | MY first hoMe

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BUYING OR SELLING A HOME IS ONE OF THE most important — and biggest — investments that most people will make in their lifetime, as well as one

of the most complex. If you’re a first-time homebuyer, it can seem overwhelming. Help is available to you through two important resources.

First, make sure to work with a Realtor, a real estate licensee who is a member of a Realtor association. Unlike real estate practitioners who are simply licensed by their state to do business, Realtors subscribe to the organization’s strict code of ethics and standards of practice. And your Realtor will manage your transaction for you. Tallies vary because each transaction is unique, but estimates indicate there are over 180 steps that a Realtor may need to take during a real estate transaction from start to finish.

There are some basic questions you should ask when evaluating a potential Realtor. You may want to add to the list depending upon the personal expectations that you have for your transaction.

• Do you have an active real estate license in good standing? Are you a Realtor?

• How long have you been in residential real estate? Is it your full-time job?

• What designations do you hold?

• Will you represent me exclusively, or will you represent both the buyer and the seller in the transaction?

• How will you keep me informed about the progress of my transaction?

• Please provide names and phone numbers of three of your most recent clients.

An additional resource available to first-time and returning homebuyers is HOWNW.com, the brand-new Homeownership Opportunities Website NorthWest. This Web site was created as a public service by the Portland Metropolitan Association of Realtors Homeownership Opportunities Committee, and contains a wealth of helpful information for homebuyers. A searchable summary of homebuying programs for Multnomah, Washington and Clackamas counties is provided — simply enter in the areas where you wish to live, your household income, and other information and a list of programs you may qualify for will be provided. Additional resources include 100 Questions and Answers for Buying a Home, information on finding a loan, a real estate glossary and much more. Visit www.HOWNW.com today.

Gary Majors, president of the Portland Metropolitan Association of Realtors, provided this article. For more information, call 503-228-6595 or visit pmar.org.

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MY first hoMe | 21

An Agent Can Help You Navigate The Process

22 | MY first hoMe

UST ABOUT WHEN YOU FINISH PICKING A LENDER and a real estate professional, it’s time to select the type of house you want to buy. Do you prefer a new or an existing

home? What about a condo or townhome? Another important consideration is the type of ownership you select: fee-simple, condo or a land-trust property.Truth be told, they are all good choices depending on your

needs and desires. Take a closer look at the following options so you’ll know the differences between them when it comes time to choose what is right for you.

New beginningsA brand-new home is one that is newly constructed and has

never been occupied. Due to higher building standards, newly constructed houses are often more energy-efficient than older homes. Some newly constructed homes in one of Portland’s “Homebuyer

Opportunity Areas” are eligible for a 10-year limited property tax exemption. To qualify, the builder must apply for each home, must sell the home for less than $275,000 and the homebuyer’s

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Choosing the Right HomeUnderstand and consider all your

options before you start shopping

for a home

By Jon Gail

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TOP LEFT: Newly constructed homes at HOST Development’s Crystal Springs subdivision. BOTTOM RIGHT: Older homes like this one can offer a lot of character and charm.


annual household income must be $70,000 or less. During the exemption period, property taxes on a qualified home are about half, or even a third, of the normal amount — potentially saving you thousands of dollars. The Portland Development Commission (PDC) administers

the program and publishes a list of these homes on its Web site at www.pdc.us/nhp. Another benefit of buying a new home under this scenario is the one-year warranty that is included by Oregon law. And when you buy a new home, you typically get new appliances, flooring, roofing, countertops and the latest and greatest the building industry has to offer. You might also ask your builder if it’s a “green” home, meaning it has been built or outfitted to an energy-saving standard such as EarthAdvantage or Energy Star. However, even when buying a new home, it is still important to get a full home inspection to make sure the home is in good shape before you buy it.

Old standbysBuying an existing home will provide

you even more choices. Older homes can be very charming and a great investment, but pay special attention to how well it has been maintained and updated. Of course, you’ll want to get a home inspection to verify the condition of the home before you buy. Do keep in mind that homes built

prior to 1978 might contain lead-based paint, either inside or outside. Watch for chipping and peeling paint in older homes, as it can be especially toxic to children younger than 6 years old. Another factor to consider when buying an older home is the cost of heating and cooling. Ask to see utility bills to determine whether the energy costs are reasonable and affordable for your budget.When considering an older home, be sure to confirm there is

not an old underground oil tank on the property. But older homes come with many benefits. Often, they are

more centrally located, are in established neighborhoods, are on larger lots, have mature landscaping, fencing and other amenities. With so many existing homes to choose from, you are bound to find at least one that you love. Be prepared if you intend to buy a fixer-upper to find a lender who can help you finance the purchase and repairs all at once.

Condominium comfortIn addition to the age of a home, you will need to choose

the type of home and ownership model you want to buy. In Portland, you can choose between the standard fee-simple form of ownership or a shared ownership model. Fee-simple ownership means you own both the land and the

home; typical of a detached, single-family dwelling.On the other hand, condominiums are typically owned by the

members of a Homeowners Association (HOA). When you buy a condo you become a member of the HOA and are granted exclusive rights to a certain unit, and in some cases a yard as well.

A condo purchase usually comes with HOA dues in addition to your mortgage payments, taxes and insurance. HOA dues generally range between $100 to $300 a month. This cost may seem steep, but the monthly HOA dues may cover some or all of the utility costs, exterior maintenance of your siding, roof and gutters, and even amenities like swimming pools, hot tubs, workout rooms and other common areas for residents.If you are buying an older condo, make sure to check its

condition very carefully. Ask about the maintenance of the condos and if any “special assessments” are being planned. As with any property, it’s a must to get a home inspection.

Sharing the valueYou may find yourself looking into buying a home through

a local community land trust. The land trust model is a unique form of shared ownership. You get the home and the land

trust keeps the land. The land trust then leases you the land for a nominal fee. This option offers very affordable homes with all of the usual benefits except one: You don’t get to keep all of the increased value of the property when you sell. With the land trust model, you’ll

pass along some of this equity to future homebuyers to keep the home permanently affordable. With the purchase of a land-trust home you still get to deduct the

property taxes and mortgage interest, just like other forms of ownership. To learn more about the land trust model, check out the Proud Ground, formerly known as Portland Community Land Trust, at www.proudground.org.

Choose wiselyThere are so many choices for new homeowners today, it can

be intimidating just to get the ball rolling. After all, investing in your first home is serious business and a decision you will live with for many years. That’s why it’s so important to know about the options available in your community and within your budget. Of course, everyone is different and finding the perfect

home is based on your individual needs and preferences. So it is essential to think about all the things that are really important to you when it comes time to choose a home. Also remember that you can always change the home’s qualities such as color, flooring, window treatments, but you can’t change where it is located or easily change its surrounding uses and properties. Location, location, location is still a good rule to follow. One thing that is certain is you should carefully consider

all of your housing options before making this most crucial decision. Remember, you’re not just buying a house. You’re investing in your future. �

These newer condos are not only modern, but also energy efficient and green built.




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By John Miller

MANY DREAM OF BUYING their first home, but fear that all they can afford is a dump. You may feel that

buying a newly-constructed green built home is too costly to even consider Well think again.

Fortunately for hard working Portlanders they do have an affordable option to buy a new energy efficient green built home. HOST Development

creates high-quality, affordable homes for individuals and families. With more than 380 homes and counting, HOST has become the leading nonprofit, affordable home builder in Portland. HOST builds a range of housing types that not only fit comfortably into their surroundings, but act as the catalyst for revitalizing and strengthening neighborhoods. The organization’s 20 years of experience in building homes for first-time homebuyers


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means you get a quality built, energy-efficient home and a company that stands behind its homes and its homebuyers. In addition, HOST homes provide a $5000 closing cost assistance grant and come with a 10 year limited property tax exemption as well. This means you pay less to get in and stay in their homes.

You get a home that provides you and your family with independence and security, tax benefits that give you

Do you want to buy a home that is affordable?Do you care about saving money on your energy bills?Do you care about your carbon footprint?Do you care about your community?

Dream Builders; Green Builders; Home Builders

TOP LEFT and CENTER: Homes at HOST’s Helensview Subdivision. BOTTOM LEFT, BOTTOM RIGHT and TOP: Recent homebuyers who bought a home from Proud Ground, formerly the Portland Community Land Trust. Like HOST Development, Proud Ground sells affordable homes to first-time homebuyers.


Going for GreenMany of Portland’s affordable home builders are also green builders. Green-built

homes are easier on the environment, easier on your pocketbook and easier on you because they are healthier homes. A green-built home is one that is energy efficient, has good indoor air quality, uses building materials responsibly and strives to have a minimal impact on the environment. The most common types of green-built homes are EarthAdvantage, Energy Star or LEED-certified homes. Some homes may even qualify as all three.

Homes built to the EarthAdvantage standard are now fairly common in Portland. EarthAdvantage homes are significantly more energy efficient than current building codes require and include a number of other green features. HOST homes, for example, include “hot water on demand, energy-efficient appliances, low VOC (volatile organic compound) paints, a fresh-air exchanger, a gas fireplace insert, higher-than-code insulation and zonal heating,” explains Alyssa Isenstein Krueger, a HOST sales associate.

LEED, which stands for Leadership in Energy and Environmental Design, is another common green building standard established by the U.S. Green Building Council. Buildings that meet certain environmental and efficiency standards, and are independently verified by a third party, can receive a LEED rating. It is still rare for detached single-family homes to meet these standards, but Portland has more certified LEED multi-family and commercial buildings than any other city of its size. Additionally, Portland has one of the first “Silver Level” LEED-certified Neighborhoods in the nation. It was created by HOST Development. That development is HOST’s Helensview subdivision located at Northeast 64th and Killingsworth in Portland.

Environmentally-conscious homebuyers should also look for the Energy Star logo. Energy Star is a federal seal of approval that recognizes green-building practices. Energy Star appliances, for example, mean they use less energy to operate than standard appliances or fixtures. The Energy Star seal also applies to lighting, heating, water heaters and even entire homes.

Buying into green building is easier than you may think. You can even ask your real estate professional to limit your property search to green homes, which is now a search feature offered by the Regional Multiple Listing Service. If you do choose to go green you’ll be happy you did every time you pay your utility bills, breathe the air in your home and examine what you are doing to reduce your environmental impact for future generations.

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more monthly take-home pay, and monthly mortgage payments that won’t increase like rent can. You get stability: homeowners move less often than renters. And your own home provides a secure base for kids: homeowners are involved in their schools and neighborhoods.

As a homeowner, you’ll have the freedom to paint, landscape and have a pet. In other words — make your home your own. No more “throwing money away” on rent. You can fulfill a dream and that’s not all. HOST Development has helped over 380 Portland families realize the dream of homeownership. The company builds energy-efficient homes and markets them to first-time homebuyers earning between 70 and 100 percent of the area’s median family income. HOST’s mission is based on the belief that strong, healthy communities are created and sustained when families have a stake in their neighborhoods. The professionals at HOST also believe that high-quality, affordable housing should focus on sustainability.

HOST already builds its homes to EarthAdvantage standards, but now has set its sights on even higher greenbuilding standards. HOST is building homes to LEED (Leadership in Energy and Environmental Design) standards at Helensview in Northeast Portland. By meeting LEED requirements, HOST is employing construction and development practices that will have the least impact on the environment and the greatest benefit to improve people’s quality of life. Helensview is one of the first certified LEED Neighborhood Development communities in the nation. Helensview is a 52-home subdivision at 64th and Killingsworth in Northeast Portland’s Cully neighborhood. This four-acre site features 52 single-family detached homes and a large green space for the enjoyment of homeowners.

For more information, go to www.hostdevelopment.com or call 503-331-1752. John Miller is the Executive Director of HOST Development.

LEFT: These homes at HOST’s Helensview subdivision are green built homes.

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Would you like to buy a new home and have lower property tax bills, too? If so, you should look into buying a new home from a local home builder that participates in the Single-Family New Construction Limited Tax Exemption Program, or what is commonly known as the single-family “LTE” program.

The way the LTE program works is a participating builder applies for the LTE with the Portland Development Commission (PDC) before construction is complete. The builder sells the home to an eligible homebuyer for up to $275,000 (2009, adjusted annually). The eligible homebuyer then files an application and the required documents with PDC to secure the tax exemption.

If granted, the exemption significantly lowers the homebuyer’s annual property tax bill for as long as the first 10 years of ownership. Under the LTE, the property tax bill is based only on the value of the lot and does not include the additional value of the new home. This results in a tax bill that is often less than half the amount it would be if the structure was included in the calculation. The homeowner saves thousands of dollars over the full 10-year exemption period. The lower property tax payments may also help homebuyers increase their purchasing power.

To qualify, the homebuyer must earn less than $70,000 (2009, adjusted annually), must apply and pay an application fee; and must purchase an approved LTE property that is within a designated “Homebuyer Opportunity Area.” To continue receiving the exemption, the LTE homeowner must occupy the home. When the exemption expires in 10 years, the annual property tax bill reverts to the full amount assessed including the structure and all improvements.

Some of the more active participating nonprofit homebuilders are Habitat for Humanity, HOST Development and Rose Community Development. The list of participating builders also includes numerous private-sector builders and a variety of condominium developers.

For a complete list of properties approved for the LTE program in 2009, visit www.pdc.us/lte or call the Portland Development Commission at 503-823-3270.

PDC administers the program on behalf of the city of Portland. Don’t miss your chance to save big with a brand new LTE home.

— Jon Gail

Program extends tax help for new homeowners

To learn more about buying your first home visit:

www.MyFirstHomePDX.com

• More Homebuying Resources • Homebuyer education and counseling providers• Down payment assistance• Home loan programs • Tax credit programs• Free fairs, workshops, tours and events• Online education and videos• Online Resource Directory• And a whole lot more!

MOVING INTO A NEW home — moving from the familiar to the unknown — can be very stressful.

Fortunately, there are resources available to help you deal with this major life change. These community resources can give you all kinds of information about your prospective neighborhood and help you start building those new relationships that will ease your transition.

When you are considering a new home, you will want to know things like:

• How close is our new house to our children’s school?

• Where is the closest grocery store?• Is the house located close to public

parks? • How safe is the neighborhood? The City of Portland provides a handy

website if you want to know specifics about your potential new neighborhood. Go to www.portlandmaps.com, type in your new address and click on the many links provided. They will lead you to crime statistics, aerial photos, school district information, transportation options, property tax information, nearby parks, water, sewer and garbage services, zoning and much, much more.

But “home,” as you know, is about people as much as it is about services

Getting to Know Your CommunityBy Art Hendricks and Amalia Alarcon-Morris

and geography. It is about relationships with friends, neighbors, teachers and grocery store and shop owners. Moving and relocating to a new house and neighborhood involves not only moving arrangements and packing and unpacking mountains of boxes, but also settling into a new neighborhood, meeting your neighbors and getting your kids comfortable in their new school.

Here are some tips to help you in this transition.

• Invite your friends and family over for a move in party or barbeque. This will help you and your family transition into the new neighborhood

• Be willing to move beyond your basic comfort level. Make walking your dog around the neighborhood a family activity. Take the kids to the neighborhood park and strike up a conversation with other parents there. Or just take a stroll by yourself and plan something to help you get to know your community.

• Volunteer to do community service. It is one of the best ways to create meaningful new ties. Find opportunities through local community centers or community gardens, your job, churches, or schools. Search online or call the City at 503-823-4000 for options.

• Take a class at a community center! Whether it’s Salsa dancing, swim classes, or an art class, these are fun, low cost ways to be social and learn something new. Participate with your kids in your local center or immediately resume one or two activities you did before moving. You’ll meet people with common interests right off the bat! Call Portland Parks at 503-823-7529.

• Find a support network. If you have kids, look for a “young families” group. Religious or faith traditions? Start looking for a new church within your neighborhood, or invite church members at your present church to visit you at your new home.

• Get a walk or bike map from Metro at www.oregonmetro.gov and start exploring your neighborhood. Or just get on a bus and let yourself be driven around. Exploring your new environment is fun and immediately gives you something in common with other people. And you’ll start identifying your favorite coffee shops, restaurants, shopping centers — a true sign of home!

• Attend a neighborhood association meeting; find your neighborhood association at www.portlandonline.com/oni or by calling 503-823-4000. Or get involved with a cultural group. For more

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information on different cultural groups contact (503) 823-5827.

• Attend a neighborhood block party. If you want to know if your neighborhood has an existing block party, or you want to start one, go to www.portlandonline.com to learn about the many community activities and organizations within the city. Visit the Office of Neighborhood Involvement (ONI) at City Hall, 1221 SW Fourth to learn more about neighborhood associations and how you can become involved. ONI can also assist you if you have questions or concerns about livability issues or crime within your neighborhood.

• Find general information about the City of Portland and Multnomah County by calling 503-823-4000.

But probably most importantly — get to know your immediate neighbors! Introduce yourself and your family. Having a good relationship with your neighbors will help you to feel comfortable in your new place. Relationships take time to develop, but if you are willing to get to know your neighbors, take that first step with a jar of jam in hand. This will benefit not only you and your family but will also strengthen the fabric of the neighborhood, making it a place you’ll be happy to call home.

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Ask Lenders About Their Loan Programs

12. Can you prepare and show me a Good Faith Estimate GFE) document for the loan programs you feel best meet my needs?

13. Which figures on the Good Faith Estimate can change and under what circumstances?

14. When can you lock in my interest rate? How long does the rate last once it’s locked in? Is there a cost to me to lock in the rate?

15. Will a different company purchase or service my loan? Who will I be paying on an ongoing monthly basis?

So now you know some of the best questions to ask when shopping for a lender and a loan. Make sure to ask these questions before you make a final selection. It is a good idea to talk to at least three or more lenders before you settle on one. Of course, never let anyone pressure you to sign anything or make you feel like you have to make a rush decision. Also, don’t let multiple lenders pull your credit report because it can lower your credit score by a few points. Sometimes, even a few points can make a big difference. By being a smart shopper and asking a lot of questions, you’ll save a bunch of money and be happy knowing you chose the best lender and loan program to meet your needs.

K NOWING THE RIGHT QUESTIONS TO ASK IS half the battle when selecting a loan officer and loan program. The questions you ask are a critical part of your

research, but how do you know which questions to ask? To save you time and a few headaches, here are some of the key questions you should ask a lender about their loan options.

1. Are you new to lending or have you been in the business for a while?

2. Who oversees or regulates your company? Where do I check to see if it is in good standing?

3. Do you offer PDC’s Mortgage Credit Certificate program?

4. Does your company have any programs created especially for first-time homebuyers or low- to moderate-income buyers like a Community Reinvestment Act (CRA) loan program or other loan products?

5. Are any of the fees you charge paid up-front and nonrefundable? If so, which fees are they and under what circumstances are they nonrefundable?

6. Once I am approved for a loan, how long is the preapproval or commitment letter valid?

7. Is this loan a fixed rate, adjustable rate or interest- only loan?

8. Does this loan have a prepayment penalty if I pay it off early? If so, how much is the penalty and how long is it in effect?

9. Does this loan have a balloon payment? If so, what is the amount and when would it be due?

10. What is the annual percentage rate, or APR, for the loan products you are recommending?

11. What are all of the fees and costs associated with getting this loan that I must pay? What does each fee or cost cover?

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A PROFESSIONAL home inspector can spot existing

defects and conditions that the seller may be unaware of or might not be spotted easily.A home inspection is a general,

visual examination of the current condition of the house. The inspector’s report describes the mechanical systems of the house including interior plumbing, electrical, heating and cooling, the general condition of the interior, attic, visible insulation, ventilation, siding, windows, doors, roof, garage, foundation and visible structure. Home inspectors will not move furniture,

rugs or other obstacles, nor will they inspect areas that are inaccessible such as wall interiors, wet crawl spaces and steep or wet roofs.Features that are not part of the main

structure such as septic systems, wells, underground piping and swimming pools, are usually not included in a home inspection report. If you want these items inspected, discuss it with the inspector and be sure to include those and any other additions in the contract.

A Home Inspection Is Vital

You may want to consider finding your own home inspector. Contracting with your own home inspector provides you complaint rights with the Oregon Construction Contractors Board if anything goes wrong. Ask friends, coworkers, neighbors, your attorney or lender for recommendations. Always have a written contract between

you and the home inspector. Don’t sign the contract until you have read it thoroughly and understand everything in it. Always ask for clarification if you do not understand something — even if it’s a single word or term. It is important to be present during the

home inspection so you can discuss the inspector’s findings. Keep in mind that a home inspection is an educated opinion,

not a warranty or guarantee that the house is sound or that there will never be problems.Most people do not buy a used car

without having it checked out by a qualified mechanic or researching the value of the car. Why would you buy a home without having a home inspection done first?Visit www.hirealicensedcontractor.com

to download the Construction Contractors Board publication, “Looking for a Home Inspector,” and to check a home inspector’s license.

Nancy Weber is the consumer education coordinator at the Oregon Construction Contractors Board.

By Nancy Weber

Before purchasing a house, many people contract with a home inspector to objectively evaluate important aspects of the home’s condition

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Story by Nicci Boots

Diligence Overcomes Doubts

Jackie Blackbird’s friends used to tell her about the benefits of owning a home so often that she couldn’t help but take their advice.Five years of paying rent in Beaverton had left her thinking she

would rather be using that kind of money to own a home of her own, and she knew the tax breaks that come with ownership would be highly beneficial. When discussing this with her friends, they offered nothing but encouragement and promised that finding a home would be a great experience for her. But she was hesitant, convinced that the home-buying journey

would be difficult. “I definitely had my doubts, so I looked into it as much as I could,” she says. Blackbird got started by doing what she does best: She first

devoted an ample amount of time to analyze data on home buying, then diligently researched the process online.Attending the Native American Housing to Homeownership

Fair at NAYA Family Center, connected her to the many programs available in the area that she could use in her search. She also became aware of the HUD Section 184 Indian Home Loan Guarantee Program, and was happy to learn that it is available on all land in Oregon, Washington and many other states, not just for those living on reservation land.Blackbird, a member of the Gros Ventre/Assiniboine tribes, grew

up on the Fort Belknap Indian Reservation in Montana, and was excited to know she might become the first member of her family to buy a home outside of the reservation.She knew she was receiving adequate and constructive information

through the Portland home-buying programs she had found, but Blackbird also knew there was still a lot of work to do, particularly in planning to save the money she would need.“It all comes down to learning how to budget,” she says. “It was a

question of, ‘Can I really make those mortgage payments?’”Blackbird began working with a financial adviser at her credit

union and she soon began to set goals and efficiently “put money into savings and leave it there.” She also increased her knowledge

and attended homebuyer education classes to learn more about the buying process and found a great mortgage broker that effectively tended to her many questions and concerns. Something that kept her motivated throughout the process was

the thought of owning a place she could make her own – a house that could be painted whatever color she wanted; a place where she could practice her culture without any worry of being bothered.Her hard work paid off and her hopes were answered in 2007

when she found a condominium that she felt was just the right size and was located conveniently close to work. After moving in, she says, she began to appreciate the sense of ownership and security even more, and is excited to be developing friendships in a growing community.As a first-time homeowner, Blackbird feels she has a responsibility

to share her experience with others and encourage people in situations similar to her own to embrace the many programs available to get into a home. This has included her brother, who is following her lead and looking into purchasing his first house.“Participate in those programs that are available to all groups of

people, including minorities and Native Americans,” she says. “Be sure to get all the facts, find a good Realtor and be confident that you can actually do it.”In the end, Blackbird is grateful for both her friends’ advice and

for what she learned in her search. She couldn’t be more pleased with the end result.“It’s been a life-changing decision, and I’m so happy I made it,”

she says.

Jackie Blackbird

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ONE OF THE MORE OBSCURE but important partners in the home-buying process is the

title and escrow company. First-time homebuyers often are unclear about the role these companies play and why they are a critical part of your home-buying team. A title and escrow company is a neutral third party, helping to ensure the transaction goes smoothly. The selection of the title and escrow company is negotiable, so feel free to exercise your right to choose if you so desire.

Soon after your offer is accepted, the title and escrow company will provide you and your lender a preliminary title report. The preliminary title report shows you,

Don’t Buy a Home Without Them

your lender and the seller if there are any financial claims or other restrictions on the property that need to be paid prior to closing the transaction.

To prepare the report, the company researches the history of the property and past liens to make sure you can purchase the property free and clear of any unpaid liens or other debts against the property. The company also conducts a search for judgments on you and the seller to make sure neither of you have any unpaid judgments. In other words, the title insurance company’s work allows you to purchase and the lender to finance the home with confidence knowing there are no old liens or debts owed on the home.

The title insurance policy also protects you and your lender’s interest in your home from any claims that may arise down the road.Most title companies offer escrow

services and employ escrow officers,

another neutral member of your home-buying team. The escrow arm of the title company is involved early in the transaction as the holder of the earnest money you deposit to show that you intend to purchase the property. Throughout the process, the escrow

officer ensures that the terms of the sale agreement and the loan are fulfilled. The escrow company is very involved at the end of the transaction, coordinating the signing of required documents, the balancing of funds paid by you and the seller, the funding of your loan and, finally, the transfer of ownership from the seller to you.So now you know why you don’t want

to buy a home without using the services of a title and escrow company. The fees you pay for title insurance and escrow services are well worth the value these professionals add with their expertise and neutrality.

Title and Escrow

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Yes! Lenders are still Lending

DURING THE PAST YEAR WE WATCHED AS MORTGAGE investors cut loan programs and tightened credit standards. Many sub-prime loans which got us into all this trouble are now gone. The days

of getting loans that allowed you to “state your income” or get a loan regardless of your payment are definitely behind us. While some loans are a thing of the past, fortunately there still are a lot of loan programs and lenders who are making loans.

The Bond LoanOne of the biggest casualties of the credit crisis is the Oregon Bond Loan.

Due to poor conditions in the bond market the Oregon Bond Loan, the State-sponsored first–time homebuyer program, is currently out of funds. For over 30 years the program and its Participating Lenders have offered great rates to income-eligible first-time homebuyers. Generally, the interest rate offered by this program is well below market. As soon as conditions in the bond market improve, Oregon Housing and Community Services will sell more mortgage revenue bonds and resume taking reservations for the program, but no one knows for sure when that will be.

The Oregon Bond Loan’s web site, www.oregonbond.us, is still a useful tool. It allows you to search for local lenders who are top producers and even for non-English speaking loan officers. Using their “Find a Lender” feature you can also search for lenders by loan programs such as an FHA loan. As you get ready to shop for a loan you should definitely check and see if the Oregon Bond loan is back in business.

The FHA LoanOne of the loan programs that made a real comeback is the FHA loan program.

FHA stands for Federal Housing Administration and is the federal agency that insures this type of loan. While an FHA loan (www.FHA.gov) is not just for first-time homebuyers, it does have a lot to offer them. It is also widely available from almost all the mortgage lenders in town.

One of FHA’s best features is it can help borrowers with lower credit scores get a loan with a low down payment of 3 ½ percent. For some lenders the lower limit is a 620 score while others may go as low as a 580 score. Borrowers must still be creditworthy to qualify, but FHA is more flexible than many other loan programs. An FHA-insured loan is also compatible with seller-paid closing costs, down

Is There Any Money Out There?

By Jon Gail


payment assistance programs and gifts from family members. With an FHA loan you can even have a family member be a co-signer on the loan without occupying the home.

The IRS First-Time Homebuyer CreditOne of the best new programs that

first-time homebuyers can tap if they close on their first home by November 30, 2009, is the new First-Time Homebuyer Credit available from the Internal Revenue Service. While it won’t help you come up with the cash you’ll need to close, it can put money in your bank account after you file an amended return. Some lenders permit you to borrow from your 401k account or a family member for your down payment and then you can repay that loan with the tax credit. You do need to meet certain income limits and you must live in the home for at least three years to avoid repaying the credit. There is even a chance that Congress may extend the credit, so check it out even if you are closing on your home after the deadline. Check out www.irs.gov for more details and updates.

The Mortgage Credit CertificateAnother newer tax credit program

that has ample funding for first-time homebuyers is called the Mortgage Credit Certificate (MCC) program administered by the Portland Development Commission (PDC). The MCC program allows income-eligible buyers in Portland to claim up to 20 percent of the interest on their first mortgage as a dollar-for-dollar tax credit instead of the traditional tax deduction. An MCC can increase the amount of money you can borrow, which in turn, expands your housing choices. To qualify, a household of one or two people must have an annual income at or below $70,000; or $80,500 for a family of three or more. PDC currently has funding to help approximately 90 more first-time homebuyers.

The program is available from specific Participating Lenders which can be found at www.pdc.us/mcc. The program is also compatible with FHA, VA, HUD 184 loans, conventional loans, but it is not compatible with the Oregon Bond Loan.

Is There Any Money Out There?

Choices for Native AmericansIf you are enrolled in a federally

recognized tribe, the Housing and Urban Development (HUD) Section 184 Indian Home Loan Guarantee program just might be for you. The HUD 184 loan program can be used to buy property on or off approved reservations throughout the United States, making it one of the best programs available for Native Americans.

Like FHA, it has a low down payment, but the neat thing about a HUD 184 loan is that it does not require an ongoing monthly mortgage insurance premium. Finding an experienced HUD 184 loan officer can be a little tricky, but help is available through the Native American Youth and Family Center (NAYA), which can assist with referrals.

The Veterans Loan ProgramsIf you are a Veteran you likely earned

the right to get a great loan insured by the Federal Veterans Administration or a below-market rate loan from the State. A federal VA loan can be obtained from most mortgage lenders. What makes the federal VA loan great is that it does not require a down-payment and it does not require an ongoing monthly mortgage insurance premium. The State of Oregon’s Department of Veterans Affairs (ODVA) also has a special loan program for vets which typically comes with a below market rate. So if you are a Veteran ask your lender about these programs.

The Community Reinvestment ActOther loan programs you should know

about are those offered by the big banks under the Community Reinvestment Act, or CRA. The CRA is a federal law that requires federally-regulated banks to make loans available to customers regardless of income throughout their service area. As a result, many banks offer some super CRA loan programs.

These CRA programs are usually limited to Portland residents who earn no more than $56,000 annually. Higher income households may also qualify if the home is located in certain low-income areas. New buyers looking for some of the

best loan programs should definitely ask their bank if they offer any special CRA loan programs.

The 80/20 OptionIf you thought all of your 100%

financing options had all but dried up, think again. An 80/20 loan is really two loans that are combined to cover 100% of the purchase price. This is a great option to consider if you’re short on cash to close, need to increase your purchasing power and your household earns a low to moderate income. Although not widely offered by most lenders the Portland Development Commission, The City of Portland and the Portland Housing Center all have these types of programs still available.

With this type of loan, borrowers can eliminate the cost of mortgage insurance and increase their purchasing power. In some cases the second mortgage may or may not require monthly payments. The City of Portland, Portland Development Commission (PDC) and the Portland Housing Center (PHC) are among the few organizations that still offer an 80/20 loan option to first-time buyers. The City’s Own Your Own Loan Program, PDC’s Down Payment Assistance Loan and PHC’s Mortgage Assistance Program (MAP 80 or MAP 100) are among the best 80/20 loan options still available in Portland. Contact these organizations for details about these exceptional programs.

Lenders are LendingDespite the credit crisis and all the bad

news you may have heard, lenders are still lending. Programs like FHA, VA, and HUD 184 loans are still within reach of many first-time buyers and do not require you to have perfect credit and tons of savings. So flexible money is out there to help you buy a home if you ask the right people and look in the right places.


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Do: >>Attend homebuyer fairs and workshops.

>>Take a homebuyer training course.

>>Continue to rent if that works best for you.

>>Sign up for an Individual Development Account, if eligible.

>>Ask lots of questions.

>>Ask for referrals from those you trust.

>>Shop around for a lender, Realtor and home inspector..

>>Get at least three good-faith estimates from reputable lenders.

>>Build an alternate credit history if you have no credit history.

>>Get preapproved for a home loan before you shop.

>>Order a home inspection.

>>Get a buyer’s agent to represent you.

>>Get to know the neighbors and neighborhood before you buy.

>>Negotiate with the seller to pay some of your closing costs.

>>Consider the cost of utilities before you buy.

>>Make sure you can get out of your rental lease without penalty when you buy a home.

>>Keep your official documents.

>>Visit www.PortlandMaps.com to learn more about the property you want to buy.

DON’T: >>Let anyone pressure you to make a quick decision.

>>Feel you have to buy a home.

>>Be late making any of your monthly payments.

>>Co-sign loans for others unless you can afford the payments.

>>Sign documents until you know what you are signing.

>>Buy a home you don’t really like.

>>Wait until you have a 20-percent down payment (3.5% percent will do).

>>Overlook your other expenses, even if the lender does.

>>Let a lot of lenders pull your credit report.

>>Settle for a payment if it’s too high.

>>Shop for a home until you know how much you can afford.

>>Take on new debt until after your loan closes.

>>Forget your fair housing rights.

>>Lose your official loan documents.

Do’s and Don’t’s For Homebuyers

Foreclosure Prevention

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Staff from the Portland Development Commission will help the City in making these loans. The program is not restricted to certain first mortgage lenders, brokers or Realtors, but all loans must be 30 year fixed rate loans with reasonable fees and rates charged to the borrower. Multnomah County and the City of Gresham have also contributed funding and support for the program. For updated information on the program’s availability, forms and other eligibility requirements visit www.pdc.us/oyol or call 503-823-3400.

The City Can Help You Buy a Foreclosed Home

THE CITY’S PORTLAND housing bureau has launched a new homebuyer assistance program called

the Own Your Own Loan Program. With federal and state Neighborhood Stabilization Program funding, the program will help eligible homebuyers purchase a foreclosed home by providing them a silent second mortgage of up to $50,000 to be used for down payment, closing costs and home repairs. The secondary loan, payable to the State of Oregon, does not accrue interest and does not require monthly payments. The program does have a declining five year share of appreciation provision to encourage long-term ownership and also requires the borrowers to occupy the homes for the life of the loan.

To qualify, the foreclosed properties must be located in specific target areas within Fairview, Gresham, Portland, and Troutdale. A map of these target areas is

available on line at www.pdc.us/oyol. Prior to being occupied the properties must meet certain Housing Quality and

Lead-Based Paint Standards. The buyer must also obtain a Pest and Dry Rot inspection and address any required repairs. The property’s purchase price must be at least one percent below it’s appraised value. Neither the purchase price or the after-rehab appraised value may exceed $266,000.

To qualify for the program borrowers may not earn more than 120% of the Median Family Income (MFI) adjusted for household size.


The following are the proposed income limits based on the household’s size

One person .............................$58,800 Five person ...........................$90,720

Two person ...............................$67,200 Six person ............................$97,440

Three person ............................$75,600 Seven person ......................$104,160

Four person ..............................$84,000 Eight person ......................$110,880

Foreclosure Prevention

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SmoothMove

By Jon Gail and Donna Schmidt

DON’T WAIT UNTIL YOU GET THE KEYS TO your home to start planning your move. Here are some tips to make your move super-smooth.

Utilities and other services — You’ll need to stop the utilities at your old address and connect the utilities at your new address. These may include cable, garbage, electricity, natural gas, phone, sewer and water services to name a few. Don’t forget to fully pay all remaining balances as you don’t want any unpaid bills messing up your credit down the road.

Buy some time — If you can afford it, you may want to extend your lease just a little longer to build in a week, or even two, before you have to be out of your rented property. Having extra time to clean, paint and move can make the transition to your new home a whole lot easier and less stressful.

Clean it up — Like it or not, now is the best time to do a deep cleaning of your new home. It’s going to be a lot easier to do it before you start moving in all your stuff.

Pick your palette — An empty room is much easier, and faster, to paint than one full of furniture, boxes and other personal items. Plus, you don’t want to get paint splatters on grandma’s antique teapot. Consider using recycled paint from Metro (www.metro-region.org/paint) to save money and help the environment at the same time. You’ll be surprised at the number of color options. Both interior and exterior recycled paints are available.

Have a moving party — Call your friends and anyone you know who owns a pickup truck and “bribe” them with pizza to help you make the move. Your employer or local grocery store might have plenty of strong boxes you can have for the asking so you don’t have to buy them. Be sure to ask first and make prior arrangements, though, as many businesses break down and recycle cardboard promptly after unpacking their boxed goods.

Change the locks — Who knows who still has a key to your home, so you’ll want to re-key or change the locks to make sure you’re the only one who is coming and going from your home. Contact a local locksmith to learn more. Consider reprogramming the garage door opener as well.

Voter registration — Don’t forget to update your voter registration record with county elections officials so you don’t miss the opportunity to have your voice heard in any upcoming elections. Visit www.mcelections.org for information and/or the forms to register, change your address, change your political affiliation or get information about your precinct and your elected representatives.

Driver’s license/Oregon I.D. card —You also need to update your address with the Oregon Department of Motor Vehicles (DMV). It’s a real “no-no” to let this go. In fact, your time is limited to make the change. Oregon law requires you to notify DMV within 30 days of moving. Not only is it a priority, it’s easy to do. You can make the change in person, by mail or update your address online at www.oregondmv.com. Don’t forget to include your vehicle registration and to contact your car insurance agent or company.

Change of address — You’ll want to officially change your address with the U.S. Postal Service right away. You can do so online at https://moversguide.usps.com or at your local post office.

After you close on your new home it is time to get ready to make the move

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Let your friends and family know your new address and phone number, too. After all, you definitely don’t want to miss that care package containing your aunt’s famous home-baked cookies.

Creditors and others — Update your contact info with your creditors and others. The list may be longer than you think. For starters, make sure to include credit card companies, car loans, insurance providers, investment providers, student loans, club or organization memberships; newspaper, magazine and catalog subscriptions, and your health and dental care providers. You can check your credit report at www.annualcreditreport.com. It’s free and provides a full list of your current creditors. Remember to contact government agencies such as the Veterans Administration or the Social Security Administration if you receive benefits from either of those organizations.

Credit offers — Don’t be surprised if you start getting all kinds of home loan offers, credit card offers and other unsolicited mail. Companies and marketers — even scammers — get your name and address from public records and will begin sending you offers to refinance or tap your equity in your home. Be wary of any unsolicited offers that could affect your finances.

Stop junk mail —While you’re at it, you can also stop unsolicited mail including credit or insurance offers at www.optoutprescreen.com.

Your employer — Make sure to update your phone number and address at work and check your emergency contact information to verify it is all still current.

Look for lead — If your home was built before 1978 it may contain lead paint. Consider getting signed up for the Community Energy Project’s Lead Poison Prevention Workshop at www.communityenergyproject.org. Visit www.pdc.us/lead to get a lead-based paint test kit from the Portland Development Commission. The kits are free.

Fire safety — Install new batteries in smoke alarms throughout the house. Who knows when they were last replaced? Additionally, it’s also a good time to put together an emergency plan, an escape route and a family meeting place in the event of a fire or other emergency.

Block calls — Unless you like talking to telemarketers at 3 a.m., make sure to register your phone number with the National Do Not Call List at donotcall.gov.

Introduce yourself — Take the time to introduce yourself to your new neighbors. Getting things off to a good start right away shows them you are a friendly, courteous neighbor they ought to get to know. Plus, it never hurts to have somewhere to go for that proverbial cup of sugar.

Energy checkup — Schedule your new home for a free energy audit with the Energy Trust of Oregon. The nonprofit

will send a representative to inspect your home and tell you the improvements you can make to reduce your energy costs. Little things may help you save a lot. You can learn more by visiting www.energytrust.org.

Pets — Know that moving can be a stressful time for your pets. Take precautions to ensure they don’t get loose or, worse, lost during all of the trips back and forth. Once things have settled, you can introduce them to their new home and neighborhood. To ease the transition, show pets the new location of their food and water dishes, toys and bedding. Those things, as well as your belongings, represent security for them. Also, let your veterinarian know you’ve moved so changes can be made in your pet’s record, to microchip information and/or collar tags.

Make it your own — Now that you own your home, it’s time to make it your own. Painting, landscaping and home décor are just a few of the ways you can add that personal touch to your new home. �

When you make the move to your new home, don’t forget to contact area utility companies to ensure a smooth transition of services — or a timely first connection if that is the case. In some instances, your service provider may change depending on where you relocate. For instance, you may not have the same garbage hauler or the same electric company if your new address isn’t within your current provider’s service territory.

Use the following list as a handy reference guide to contact Portland-area utilities to switch or begin services.

City of PortlandWater Bureauwww.portlandonline.com503-823-7770

Comcast Cablewww.comcast.com800-266-2278

Metro Recycling & Garbagewww.metro-region.org503-234-3000

Northwest Naturalwww.nwnatural.com 503-226-4211

Getting Connected

PacifiCorpwww.pacificorp.com888-221-7070

Portland General Electricwww.portlandgeneral.com503-228-6322

Qwestwww.qwest.com800-491-0118

Verizonwww.verizon.net800-483-3000

BECOMING A HOMEOWNER IS A GREAT accomplishment, but retaining that home ownership is just as important. Most everyone experiences financial difficulties at some time, but if you’re not careful, those

difficulties could lead to foreclosure. Foreclosure is the legal means your lender can use to take your house if you are not complying with the agreements you signed when you bought your house. These agreements are described in detail in various documents such as the Deed of Trust, Note or Promissory Note and Servicing Disclosure, often overlooked or misunderstood.

Foreclosure not only means losing your home, it also causes long-term damage to your credit that could make it difficult to buy a home in the near future.

Foreclosure, You Can Avoid It!

But you can avoid foreclosure! There are many things you can do after you sign your mortgage papers and move into your new home that could help you if you experience financial difficulties down the road. At the end of this article we offer some Do’s and Don’ts…

Be careful with foreclosure scammers! Unfortunately homeowners in distress are the target of individuals who want to take advantage of people desperate to save their homes. The information about your property is a matter of public record and fairly accessible by anyone interested in obtaining it. In addition to the information recorded with the county when you bought your house, notifications of default (in foreclosure) filed by the lender or a lien holder or if the house is going to be auctioned

By Fernando A. Vélez


Do’s:• Establish an emergency fund of at least three to six months’ worth of living expenses • Make sure your payments are credited /posted properly. Review your statements when you receive them • Contact your lender as soon as you foresee difficulties in making your loan payments • Explain your situation. Ask your lender/servicer for forbearance or other loan workout plan that fits your

financial situation • If you are unable to resume the regular monthly payments, ask the lender for time to sell your home to pay

off the mortgage balance • If you are uncomfortable in contacting your lender, seek the assistance of a HUD-approved nonprofit

counseling agency • Seek for information and understand your rights from reliable sources such as government agencies

Don’ts: • Overuse your equity to consolidate other debt • Ignore late payments or any other notifications from your lender • Respond to offers in the mail or media offering good deals to refinance • Give direct access to your bank accounts or give your personal identification number • Sign any documents you don’t understand! • Respond to aggressive offers to “save” your house • Give away the title of your house without first consulting with an attorney

are all public record. Scammers use this information to offer their services and their tactics varies in nature. For example they may pressure you into giving them your personal financial information or to have direct access to your bank accounts. They may prohibit you to contact your lender directly or they may tell you not to make your mortgage payments and instead give them the money you would use to pay your mortgage.

Assisting homeowners in negotiating with a lender is not prohibited by law, but agencies often receive complaints about individuals charging exorbitant amounts of money and do nothing to help the homeowner to keep their homes or obtain realistic agreements to help homeowners in improving their financial situation. Some of them advertise their services on TV or the Internet and want to be portrayed to be related to government or nonprofit groups, guaranteeing successful results.

If you choose to hire a private party to help you in negotiating with your lender, make sure you ask for a copy of the contract you will be signing. Understand exactly what they will do for you and what will be the total amount you will have to pay. There are new federal and state laws to protect homeowners against these practices. You can file a complaint with the Oregon Department of Justice by visiting www.doj.state.or.us or by calling (877) 877-9392. You can obtain more information about the foreclosure process in Oregon, resources and recent updates to the state and federal laws related to foreclosure by visiting the Oregon’s Division of Finance & Corporate Securities by visiting www.dfcs.oregon.gov or by calling (866) 814-9710.

There are various government approved nonprofit organizations offering their assistance for free! For the nearest nonprofit call 800-SAFENET (800-723-3638.) Each organization has

trained and certified counselors who can provide you with reliable and unbiased information. They may also be able to help you in negotiating with your lender. Please bear in mind these organizations are very busy, so it is important you are prepared by providing copies of ALL documents they will ask you to bring when you have the opportunity to meet with a HUD-approved counselor.

There are various programs to help you keep your house! One for example is the “Making Home Affordable Plan” (MHAP) recently launched by the current administration. The program is intended to help eligible homeowners keep their homes by making the mortgage payments of the homes – provided they are occupied as a primary residence - more affordable and realistic to their budgets. Homeowners are encouraged to learn more about this program by visiting www.makinghomeaffordable.gov . Access to the program and information is free.

The information provided in this article should be used for reference purposes only and does not constitute legal advice. For legal assistance please contact the Lawyer Referral Services from the Oregon State Bar at www.osbar.org or (503) 684-3763.

Some do’s and dont’s to help you:



Adjustable rate mortgage (ARM): This mortgage has an interest rate that is periodically adjusted based on certain indexes. Typically, the interest rate is lower initially, then rises or falls.

Affordability analysis: A detailed look at your ability to buy a home. It includes your income, assets and debts.

Appraisal: The estimated value of the property. It is required by lenders to help determine the loan amount.

Appreciation: The increase in property value due to market conditions, improvements, etc.

Assessment: Taxes levied on a property for specific purposes such as sewer, streetlights, sidewalks, etc.

Backend ratio: Your monthly debt (credit cards, student loans, etc.) divided by your gross monthly income.

Binder: An agreement, secured with earnest money, when a buyer offers to purchase a home.

Broker (mortgage): A professional who arranges funding or negotiates loan terms for a client. Brokers usually charge a fee or receive a commission for their services.

Building code: Regulations governing the design and construction of a building.

Clear title: A property title with no liens or judgments.

Closing: The final meeting where a property legally changes hands from the seller to the buyer.

Glossary of Terms Closing costs: The fees charged to transfer ownership of property. Costs can include taxes, title insurance, transfer fees, origination fees, etc.

Contingency: A condition that must be met for a sale to go through. Common contingencies include passing a home inspection and that the borrower is able to get the loan.

Default: Not meeting the legal obligations of your contract such as failing to make your monthly mortgage payments. If you default, you can lose your home.

Delinquency: Not making your payment on time. This, too, can lead to foreclosure and losing your home.

Down payment: The money you pay up front, which is often the difference between the purchase price and the loan amount.

Earnest money: Money paid to the seller by the buyer to show you are serious about purchasing the home. It also solidifies the transaction. If the sale is successful, the money is credited to the purchase price.

Easement: A right of way giving certain people such as a neighbor, government entities or utility providers legal access to a specific part of your property. If the home you are buying has an easement, be sure you fully understand its location and terms.

Equal Credit Opportunity Act (ECOA): A federal law requiring lenders and other creditors to make credit available without discrimination based on race, color, religion, national origin, age, sex, marital status or receipt of income from public assistance programs.


Equity: The difference between what the property is worth and what you owe. It can fluctuate with market conditions.

Escrow: Money that is held in trust for payment of taxes and insurance.

Fixed-rate mortgage: A mortgage with a set interest rate for the entire term of the loan.

Foreclosure: The legal process used when the lender or the seller takes back or forces the sale of a property when the borrower fails to meet the terms of the mortgage agreement.

Hazard insurance: Insurance to protect you and your property from losses such as fire or even certain weather-related events, such as a windstorm.

Home inspection: Used to assess the physical condition of a property, an inspection looks at a home’s major systems and structural elements.

Homeowner’s insurance: Required insurance that combines personal liability, hazard insurance and coverage for your home’s contents such as furniture and other personal items.

Homeowner’s warranty: This warranty, provided by either a seller or builder, covers specified repairs to a home for a specific period of time.

Interest: The amount of money your lender charges you for your loan. The interest rate you pay depends on several factors such as market conditions, or credit history and the amount of the loan.

Late charge: A financial penalty charged to you when your payment is late, usually by a certain number of days. Be sure you know what it is. By law, the amount must be clearly stated by the lender.

Lien: A legal claim to a portion of property to ensure the payment of a debt. When the debt is satisfied, the lien is removed.

Mortgage: The legal contract between you and your lender.

Mortgagee: The lender.

Mortgagor: The borrower or homeowner.

Origination fee: A fee lenders charge to cover their costs in preparing loan documents, making credit checks, inspections and other administrative details.

Points: A point is a fee paid to the lender at closing. How many points you pay at closing can vary. Each point equals 1 percent of the loan amount. For example, 3 points on a $100,000 loan is $3,000.


Glossary of Terms Prepayment penalty: A specified dollar amount set by some lenders that a borrower must pay if a loan is paid off early. Not all states allow prepayment penalties. Oregon does.

Principal: The amount you owe on your loan, not including interest.

Recording fees: A charge for recording a home sale with local authorities such as a county, where it becomes a public record.

Term: The length of your loan and/or contract.

Title search: A search of public records to validate legal ownership of property.

SOLD




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Homebuyer ResourcesAcorn Housing Corporation 503-788-9989 www.acornhousing.orgAfrican American Alliance for Homeownership 503-595-3517 www.aaah.orgAsian & Pacific Islander Community Improvement Assoc. 503-334-2915 www.apicia.orgClackamas Community Land Trust 503-654-1618 www.clackamasclt.orgClackamas County - Community Development 503-655-8591 www.clackamas.us/cdCommunity Housing Resource Center 360-690-4496 www.homecen.orgCommunity Vision 503-292-4964 www.cvision.orgConstruction Contractors Board 503-378-4621 www.ccb.oregon.govDepartment of Consumer & Business Services 503-947-7854 www.dcbs.oregon.govEarthAdvantage 503-968-7160 www.earthadvantage.orgEast Portland Enhancement Project 503-788-8052 x105 www.rosecdc.orgFair Housing Council of Oregon 503-223-8197 www.fhco.orgHabitat for Humanity International 800-422-4828 www.habitat.orgHabitat for Humanity-Portland/Metro East 503-287-9529 www.pdxhabitat.orgHacienda Community Development Corporation 503-595-2111 www.haciendacdc.orgHomeownership Opportunties Website NorthWest 503-228-6595 www.HOWNW.comHOST Development 503-331-1752 www.hostdevelopment.comHousing Counseling (HUD) 800-468-8558 www.hud.govHousing and Urban Development (HUD) 800-669-9777 www.hud.govLatino Home Initiative 503-802-4252 www.latinohomeinitiative.orgNative American Youth and Family Center 503-288-8177 x223 www.nayapdx.orgOpen Door Counseling Services 503-640-6689 www.opendoorcc.netOperation H.O.M.E. (Home Ownership & Minority Equity) 503-823-4623 www.operationhome.netOregon Bankers Association 503-581-3522 www.oregonbankers.com Oregon Mortgage Lenders Association 503-223-6622 www.oregonmla.orgOregon Housing & Community Services (Oregon Bond Loan) 503-986-2015 www.oregonbond.usOregon Real Estate Agency (Salem) 503-378-4170 www.oregon.gov/reaProud Ground 503-493-0293 www.proudground.orgPortland Community Reinvestment Initiatives Inc. 503-288-2923 www.PCRIhome.orgPortland Development Commission 503-823-3400 www.pdc.us/nhpPortland Housing Center 503-282-7744 www.portlandhousingcenter.orgPortland Maps 503-823-4000 www.portlandmaps.comPortland Metropolitan Association of Realtors 503-228-6595 www.pmar.orgRegional Multiple Listing Service 503-236-7657 www.rmls.comRose Community Development 503-788-8052 www.rosecdc.orgWashington County - Housing Services 503-846-8814 www.co.washington.or.us

Homeowner ResourcesCity of Portland 503-823-4000 www.portlanonline.comClackamas County - Community Development 503-655-8591 www.clackamas.us/cdCommunity Energy Project 503-284-6827 www.communityenergyproject.orgConstruction Contractors Board 503-378-4621 www.ccb.oregon.govDepartment of Consumer & Business Services 503-947-7854 www.dcbs.oregon.gov Energy Trust of Oregon 503-493-8888 www.energytrust.orgManufactured Dwelling Park Community Relations 800-453-5511 www.ohcs.oregon.govManufactured Home Owners of Oregon (formerly OSTA) 800-423-9371 www.mhoo-osta.orgMultnomah County Tax Assessor 503-988-3326 www.co.multnomah.or.usMultnomah County Weatherization 503-248-3999 x 4052 www.co.multnomah.or.usPortland Development Commission 503-823-3400 www.pdc.us/nhpReach CDC - Community Builders Program 503-231-0682 www.reachcdc.orgRebuilding Together 503-943-7515 www.rebuildingtogether.orgUnlimited Choices 503-234-6167 www.unlimitedchoices.orgWashington County - Housing Services 503-846-8814 www.co.washington.or.us

Homeownership Resource Directory




The Portland Development Commission (PDC) has helped make Portland a great place to call home.

Our work includes keeping Portland an affordable place to rent or buy a home.

PDC funds affordable housing projects and offers homeowner and homebuyer assistance programs that increase purchasing power and lower monthly house payments. PDC’s homebuyer assistance tools include:

News You Can UseNewsletter

To learn more about how we can help you call Portland home, please visit

Your partner for home purchase, repair & renovation.

With help from PDC, Guadalupe Avila fulfilled her “dream to own my own home and provide a safe place for my kids.”

222 NW Fifth AvenuePortland, OR 97209

www.pdc.us

“PDC gave us so much information during our homebuying process. They worked with us on our payment and even got us closing assis-tance. Everything went so smoothly – an amazing experience.Thank you PDC.”

Charode and Jenee Johnson, Homeowners

Documents

My First Home Magazine