The state of Oregon recently expanded its eligibility requirements for the Oregon Veteran Home Loan Program (ORVET). This state loan program is exclusively designed for veterans looking for a home loan in Oregon. It is secured through special federal bonding that is only available to state home loan programs. This allows the state to provide veterans with lower interest rates than typically available.
Extended Eligibility for Oregon Veterans
The eligibility requirements for this type of loan have recently been expanded to make more veterans eligible. Oregon voters in the November 2010 ballot approved Measure 70 that expands veteran eligibility for the ORVET Home Loan as well as eliminates the constitutional 30-year eligibility restriction previously in place. This constitutional amendment took effect on January 2, 2011.
The new amendment includes more veterans to be eligible for this type of loan. A veteran must have served on active duty with the United States Armed Forces, been discharge or released with honorable conditions and meet one of the following criteria to be eligible for this type of loan:
1) Beginning on or before January 31, 1955 served more than 90 days or 178 consecutive days;
2) Served 178 days or less and was discharged or released from active duty because of a service-connected disability; or has a disability rating from the United States Department of Veterans Affairs; or
3) Served at least one day in a combat zone.
These are the three most common circumstances but there are also many other situations and special situations that allow one to apply. To further investigate a specific veteran's eligibility it's best to talk to a VA loan expert.
In addition, veterans must also meet one of the two following criteria to complete eligibility requirements:
1) Received a combat, campaign or expeditionary ribbon or medal for service; or
2) Is receiving a non service-connected pension from the United States Department of Veterans Affairs.
Similarities of a VA Loan and ORVET
This product is very similar to a federal VA home loan, both programs offer up to 100% financing and no prepayment penalties. In addition, there are 15 and 30-year terms available, interest rates are generally low and the current maximum for the loan amount is $417,000.
Differences Between a VA Loan and ORVET
Although, an ORVET is similar to a VA loan its eligibility is separate and distinctly different from a federal VA loan. The ORVET program offers conventional loans so there is no funding fee but there may be monthly mortgage insurance instead.
Other ways that it is different from a VA loan is that an ORVET is serviced exclusively in Salem, Oregon and not sold to investors. In addition, there are no pricing adjustments for manufactured homes classified as real property and there is guaranteed acceptance loan cancellation life insurance available.
It is important to understand that an ORVET is not a federally-guaranteed VA loan, but a conventional loan. However, the expanded eligibility of this type of loan makes it advantageous for many veterans living in Oregon. To learn more about the new eligibility requirements, research this program and VA loans.
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