The CHAP Program can loan up to $14,000 to help qualified first-time homebuyers pay for downpayment and reasonable closing costs. A CHAP loan is a zero-percent interest deferred-payment loan. Here is a fact sheet.
Follow these steps to apply for a CHAP loan:
- You (the Buyer) must complete a County-approved eight-hour homebuyer education class. You may take a class through the Portland Housing Center , Hacienda CDC , NAYA or APICIA. Other training options can be found on this list of training classes. The County may approve an online class if it is combined with one-on-one homebuyer counseling.
- (We no longer require the Buyer to attend a CHAP orientation.)
- The Buyer must get pre-qualified for primary financing by an Oregon-licensed lender. Check out the State of Oregon -- Housing and Community Services' website:
- The Lender must contact Community Development for a current CHAP application packet
- The Buyer shops for an eligible property --- finds an affordable house that is in excellent condition
(Use this guide to help you learn how to look for problem areas in a house)
- Buyer and Seller sign a purchase/sale agreement and these required CHAP forms:
- The Buyer orders and pays for whole house inspection and pest & rot inspection
- The Lender submits a complete application packet to Clackamas County Community Development. The packet must include:
- The home inspection report
- The pest and dry rot report
- A completed CHAP inspection request form 05
- Allow a minimum of 30 days from submission of a complete application packet to closing
- Our staff will make every effot to conduct the property standards inspection within five business days from receipt of the whole house/pest & rot inspection report and the request for a property standards inspection form.
- Be a “first-time homebuyer”. HUD defines a first-time homebuyer as someone who:
- has not owned a home during the past 3 years, or
- is a displaced homemaker, or
- is a single parent.
- Be low-income -- see chart below.
- Demonstrate a financial need for CHAP assistance.
- Be a US citizen, non-citizen national or a qualified alien.
- Complete a homebuyer education program approved by the County.
To be a "Qualified Borrower", the homebuyer must:
- Have sufficient income to qualify for and support the primary debt.
- Be pre-qualified by a primary lender. (Contract sales are not allowed.)
- Have good credit.
- Contribute $1,000 in cash toward the purchase from the buyer’s own funds. (Does not include items that the buyer paid out-of-pocket, e.g. inspection and appraisal.)
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- Be located in Clackamas County
- Be in excellent condition! (Use this guide to help you learn how to look for problem areas in a house)
- Have a purchase price at or below:
- $228,000, and
- the appraised value
- Meet the definition of affordable, standard single family housing (a single unit)
- Meet property standards and pass an inspection by the County
- Be free of chipped or peeling paint if the house was built before 1978
- Not be occupied by a tenant (unless the buyer is the tenant)
- Full house inspection conducted by an Oregon-licensed inspector
- Pest and dry rot inspection conducted by an Oregon-licensed inspector (can be part of full house inspection)
- CHAP property standards inspection conducted by this office at no charge to the buyer. Allow a minimum of five business days from submission of the CHAP application packet.
The CHAP program is funded by a grant from the federal Department of Housing and Urban Development (HUD). The program is subject to funding availability. Homes purchased through the CHAP program must be the primary residence of the homebuyer. Other program requirements apply.
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