OAR 274-045-0240: Loan Requirements

(1) To be eligible for purchase or underwriting and closing by the ODVA pursuant to a commitment to an approved lender, a program loan shall be made or processed by the approved lender during the period of that commitment. The loan shall comply with the terms of such commitment, the requirements set forth in the agreement between ODVA and the approved lender, and the conditions set forth in the rules and the Post Vietnam Era Veterans' Home Loan Origination Guide/Mortgage Brokers Loan Origination Guide. (2) Each Approved Lender shall make loans for single-family dwellings. (3) Each program loan shall have a final maturity of at least 15 years and not more than 40 years from the date of its mailing. (4) Each program loam shall be secured by a first lien mortgage or trust deed. The veteran shall hold title to the home in fee simple. (5) No program loan shall be made to refinance an existing construction or rehabilitation loan, unless such loan was considered temporary financing. If a program loan is made to refinance such a loan, the approved lender shall certify to Oregon Department of Veterans' Affairs that the construction or rehabilitation has be satisfactorily completed before the delivery of the program loan for purchase. (6) Each program loan shall be executed on forms approved by the ODVA. Such forms shall prescribe program loan requirements regarding insurance, escrow payments, late charges, defaults, and similar matters. (7) The ODVA shall require that program loans be subject to acceleration at the option of the ODVA if at any time the veteran does not reside in the home as his/her primary residence, or if the veteran is determined to have been ineligible at the time the program loan was made. (8) The interest rate on each program loan shall be at the rate stated in the applicable commitment issued by the ODVA. [Publications: Publications referenced are available from the agency.]