Services Departments Government

Quick Reference Comparison

Program CLACKAMAS HOMEBUYER ASSISTANCE PROGRAM (CHAP) NORTH CLACKAMAS REVITAILIZATON AREA (NCRA)
Target area Clackamas County Within NCRA boundary -- See maps on website. To confirm a property is in NCRA boundary call the Development Agency: Ken Itel 503-742-4324 or Mary Anderson 503-742-4323.
Funding Source: HUD - HOME Investment Partnership Program Local Urban Renewal Funds.
Availability of Funds: First-come, first-served basis. Same as CHAP
Processing Time:
  • Allow 30 days -- from the day the complete application packet is received in our office – to close
  • See application instructions for details on what to include in packet
  • Please contact our office to make sure you have the most current forms
Same as CHAP
Loan approval / Commitment CHAP loans are approved when the buyer and property have been determined to be eligible for our program. Same as CHAP
Income Maximum 80% of area median income, adjusted for family size 120% of area median income, adjusted for family size
First Time Homebuyer Required Same as CHAP
Homebuyer Education: Required: 8 hours from a HUD-approved agency, completed within one year prior to closing. Same as CHAP
First steps: REQUIRED
  1. Take the required Homebuyer Education class
  2. Find a homebuyer class and register for orientation online
  3. Get pre-approved by a 1st mortgage lender
  4. Shop for a home
Same as CHAP
Application Process: Apply through Primary Lender Same as CHAP
Lender Qualification & Compliance: Oregon-licensed Lender Same as CHAP
Lien position: Second Mortgage. No exceptions. Second Mortgage. No exceptions except to CHAP
Debt to Income Ratio:
  1. Front-end ratio / housing debt ratio – 1st mortgage principal, interest, taxes, insurance and mortgage insurance (PITI) compared to income cannot exceed 35%.
  2. Back-end ratio / risk assessment -- PITI plus all other debt cannot exceed 45% (firm).
Maximum ratio cannot exceed 41%.
Maximum Assistance: Greater of 6% of purchase price or $10,000 up to a maximum of $14,000 Same as CHAP
Rate: 0% Deferred Payment Loan. Same as CHAP
Term: Due upon sale, transfer of title, change of use or refinance of first mortgage. MUST BE OWNER-OCCUPIED for the life of the loan. Due upon sale, transfer of title, change of use or refinance of first mortgage. Forgiven after 10 years if owner-occupied for full 10 years.
Forgivable: No Yes, after 10 years if owner-occupied for full 10 years after recording.
Closing Costs: None – there are no fees for our program Same as CHAP
Borrower’s Contribution: $1,000 of borrower's own funds. Cannot be gifted. POC items -- appraisal, pest & dry rot fee, whole house inspection report – do not count towards borrower's contribution. $1,000 of borrower's own funds. Cannot be gifted. POC items -- appraisal, pest & dry rot fee, whole house inspection report – do not count towards borrower's contribution.
Asset Limit: $10,000 liquid assets after closing. Retirement accounts excluded. $25,000 liquid assets after closing. Retirement accounts excluded.
Assumable: No Same as CHAP
Occupancy: Must be owner occupied. Same as CHAP
Title Insurance: Not required. Same as CHAP
Homeowners Insurance: Required. Beneficiary is Clackamas County, 2051 Kaen Rd., STE 245, Oregon City, OR 97045 Same as CHAP
Additional Assistance / Combo: Can be combined with other down payment assistance programs, products and gifts and with NCRA if property is in NCRA boundary. Can be combined with other down payment assistance programs, products and gifts and with CHAP.
Credit:
  • No foreclosure within 5 years.
  • Bankruptcy (Chapter 7 or 13) must have been discharged at least 2 years prior.
Same as CHAP
Primary Mortgage:
  • Up to a 30-year term.
  • Fixed interest rate only.
Same as CHAP
Ineligible Loan types: No contract sales, prepayment penalties, refinance, ARM’s, Interest-only, Hybrids, Combo or second mortgages with variable interest rates, or sub-prime loans. Same as CHAP
Reasonable Closing Costs: As a general rule:
  • Combined loan origination fee and discount points ≤1.75% of the note.
  • Total closing costs ≤3.5% of the note.
  • This does not include pre-paids.
Same as CHAP
Pre-Paids: Can be used to pay for up to one year of:
  • Mortgage insurance premiums
  • Property taxes
  • Homeowner’s insurance.
Same as CHAP
Combined LTV: As a general rule, the combined Loan to Value Ratio should not be more than 105% of the appraised value. Same as CHAP
Purchase Price Limit: The maximum purchase price must be at or below:
  • $276,000 existing homes; $281,000 new construction
  • The fair market value, i.e. the appraised value.
Same as CHAP
Funds for closing
  • County funds are in the form of a COUNTY CHECK
  • Clackamas County does not wire funds nor issue cashier’s checks
  • County funds – the check is released only to the title company in exchange for our signed documents
  • PLEASE PLAN ACCORDINGLY
Same as CHAP
Office Hours / Loan Closing Our office hours are:
  • Monday to Thursday 7am-6pm
  • Closed on Fridays
We are unable to review documents or release funds on Fridays.
Same as CHAP
Properties – Eligible:
(Single Family Housing Unit)
  • Be occupied by the seller (owner), the first-time homebuyer or be vacant.
  • Current on property taxes
  • Have clear title
  • Large enough to accommodate household
  • In excellent condition - must pass County HQS Inspection. See Inspection information sheet
Same as CHAP
Manufactured Housing:
  • Constructed after 06/15/1976 in accord with 24 CFR Part 3280
  • Installed with permanent tie downs on a permanent foundation
  • Connected to permanent utility hook-ups
  • Located on land held by homebuyer or by a land trust
  • Taxed as real property
Same as CHAP
Properties - Ineligible:
  • Tenant-occupied properties
  • Multi-family, investment or 2nd homes
Same as CHAP
Appraisal Required Same as CHAP
Required Inspections:
  • Home inspection by Oregon-licensed home inspector– buyer pays
  • Pest and Dry Rot Inspection – paid for by buyer
  • Environmental Review – by our office – no fee
  • Property Standards Inspection – by our office – no fee
Same as CHAP
LBP Requirements:
If built before 1978:
Must meet HUD, EPA, DEQ and state requirements pertaining to Lead-Based Paint. Must meet EPA, DEQ and state requirements pertaining to Lead-Based Paint.
LBP Assessment:
If built before 1978:
Visual Paint Inspection Same as CHAP
Repairs and Rehabilitation Prior to closing, must meet:
  • HUD Housing Quality Standards at 24 CFR 982.401
  • HUD Property Standards at 24 CFR 92.251(a)(2)
  • Clackamas County Housing Rehabilitation Standards
Same as CHAP

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Public Services Building

Community Development

Phone number 503-655-8591
Email cdgeneral@clackamas.us
Address 2051 Kaen Road
Oregon City, OR 97045
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