ORVET LOAN ORIGINATION GUIDE

ORVET LOAN ORIGINATION GUIDE - SYNOPSIS

Revised edition amendments effective 1/1/2024

THIS PROGRAM SYNOPSIS IS INTENDED FOR USE BY LENDING PROFESSIONALS ONLY AND IS NOT TO BE CONSTRUED

AS THE FINAL AUTHORITY ON ELIGIBILITY, UNDERWRITING OR FINAL LENDING DECISIONS. IT IS TO BE USED ONLY AS

A GENERAL OUTLINE TOOL AND MAY NOT CONTAIN ALL PROGRAM LENDING PARAMETERS.

ODVA LOANS ARE CONVENTIONAL LOANS IN STRUCTURE AND ARE

SEPARATE AND DISTINCT FROM THE FEDERAL VA LOAN PRODUCT.

LENDERS/BROKERS: The Oregon Department of Veterans Affairs (ODVA)

represents itself to follow FNMA guidelines, however, ODVA reserves the right

not to follow FNMA guidelines. Reasons include, but are not limited to, internal

policies, Federal or State legislative limitations, restrictions, impediments or

prudent lending practices. Furthermore, ODVA reserves the right not to accept or

adhere to an AUS, Desk Top Underwriting (DU) Approve/Eligible findings for any

loan or property type at any LTV level and reserves the right to mitigate any

submitted transaction, with or without DU findings at its sole discretion.

PROPERTY

TYPE

MAXIMUM

LTV

MAXIMUM

CLTV

MAXIMUM LOAN

AMOUNT

Site Built

600 sq. ft. min.

Town/Row House

Non-Condo Project

600 sq. ft. min.

Manufactured

Home Dbl. Wide +

600 sq. ft. min.

Condominiums

600 sq. ft. min.

95% Purchase

80% Purchase

100% - All

Property Type

Purchase

Money seconds

are acceptable.

ODVA 1

lien

80% or less with

PM 2

$766,550 per loan. 1

lien

position, conventional loan

limit. Effective 1/1/24

As above.

Manufactured

Home Single Wide

400 sq. ft. min.

80% Purchase

100% CLTV

As above.

Qualified Property

Refinance R/T only

NO CASH OUT

80% LTV max.

100% CLTV

As above.

Farm/Agricultural

or Commercial

Not Eligible

Manuf. Home in

Park/Land Lease

ADU’s – Any R/E

Tiny Home

Multiple Dwellings

Not Eligible

GENERAL PROGRAM PARAMETERS

LOAN

PROGRAM AND

ELIGIBILITY

ODVA LOANS ARE NOT ASSUMABLE.

ODVA LOANS ARE DUE AND PAYABLE UPON SALE OR

TRANSFER.

FIXED RATES ONLY AVAILABLE.

The veteran must have received at least one DD 214

evidencing qualifying military service. Use Member/Service

Copy 2, 4 or 6. To be eligible, the veteran must have served on

active duty, as documented on the DD214, with the United

States Armed Forces and meet one of the following criteria:

□ Beginning on or before January 31, 1955

served more than 90 consecutive days and was

discharged or released under honorable conditions; OR

□ Beginning after January 31, 1955

served more than 178 consecutive days and was

discharged or released under honorable conditions; OR

□ Served 178 days or less and was

discharged or released under honorable conditions because of

a service-connected injury or illness; OR

□ Served 178 days or less and was

discharged or released under honorable conditions and has a

disability rating from the United States Department of Veterans

Affairs; OR

□ Served at least one day in a combat zone and was

discharged or released from active duty under honorable

conditions; OR

□ Received a combat, campaign or expeditionary ribbon or

medal for service and was discharged or released under

honorable conditions; OR

□ Is receiving a non-service connected pension from the

United States Department of Veterans Affairs.

To be program-eligible, veterans did not have to enter the

service from Oregon nor be discharged back into the state.

An eligible veteran is generally limited to 4 ODVA loans and is

a lifetime benefit. Each loan cannot exceed $726,200 which is

the current conventional conforming loan limits as set by

(FNMA) Fannie Mae for 2023.

This information is general. For specifics, or to have an

Eligibility Application sent to you, call 503-373-2012 or go to

our website at www.orvethomeloans.com Eligibility turn time

is about 24 hours.

INELIGIBLE

PROPERTY

TITLE TYPES

Any land held by a Lease, Lease Hold Estate, Lease option, Co-

op, etc. that does not allow for or inhibits, restricts,

compromises or otherwise is prohibitive to secure full interest,

right and title to the real property in its entirety at any time.

Exception for such is Condominium financing where the land

may not be held in title. Co-ops, Leases, Time Share, Hotel,

Motel, Stock Ownership, Shared or Split Loan of any kind or in

relation thereto are not eligible.

PROPERTY

TYPES

PRICING/RATE

ADJUSTMENT

Property securing an ODVA loan are limited to Owner Occupied

Primary Single-Family Residence located within the State of

Oregon. Non-owner occupied 1 to 4 units, Farm/Ag,

Commercial, Houseboat, RV, ADU/Second Residential dwelling

or multi-use properties are not allowed.

There are no pricing or rate adjustments for any property types,

credit scores, DTI or LTV. Residential value emphasis is on the

dwelling, such contributory value of significant excess acreage

or ancillary outbuildings are discounted from value and

reviewed with the appraisal. See Federal Tax Code for restrictive

provisions.

LOAN -TERM

15, 20, & 30 year terms only. See rate sheet for rates and term.

LOAN AMOUNT

LIMITATIONS

Minimum: None.

Maximum: For 2024 is $766,550

INCOME

LIMITATIONS

There are no income limitations for ODVA loan applicants,

other than evidence of capacity to repay indebtedness.

RECAPTURE

ODVA loans are not subsidized, therefore no recapture penalty.

PREPAYMENT

PENALTY

None for Borrower(s).

See EPO parameters contained in the loan origination

agreement or amendment addendum for Brokers & Lenders

OCCUPANCY

REQUIREMENT

ODVA requires the loan to be an Owner Occupied Primary

Single-Family Residence and the property must be located

within the State of Oregon.

MORTGAGE

INSURANCE

See DU narrative findings for reference to coverage.

MI Coverage requirements for 30, 20 & 15 year terms:

90.01 - 95% LTV = 16% coverage.

85.01 - 90% LTV = 12% coverage.

80.01 - 85% LTV = 6% coverage.

ELIGIBLE FOR BROKER SUBMISSIONS ONLY.

SELLER-PAID

CLOSING

COSTS

Unlike FEDERAL VA loans ODVA does not require the seller to

pay all or part of the borrower’s closing costs. Participating

Lenders or Mortgage Brokers are not expected to pay any of the

closing costs.

SELLER

CONTRIBUTION

Please see Fannie Mae guidelines for seller contributions, the

seller may contribute 3%, 6% or 9% of the transaction amount

toward closing costs, depending upon the LTV. See 301.02 IPC’s.

LENDER AND

MORTGAGE

BROKER

COMPENSATION

AND FEE

LIMITATIONS

Lenders retain the ODVA origination fee as applicable to the

interest rate chosen if said rate includes an origination fee

charge of up to 1.375% or as amended from time to time, and

may charge up to $600 as a documentation fee. If the

documentation fee is not charged, ODVA will not pay as

compensation that like amount to the Lender. Refer to the

Mortgage Lenders’ Purchase Agreement. No other fees may be

charged or retained. Lenders may charge all true pass-through

costs such as appraisal, credit, 1004-D, and courier fees. ODVA

will add a premium to the loan purchase price to bring the

lender fee income to 2.00% from the scheduled loan origination

fee which is tied to the specific interest rate selected by the

borrower.

NOTE: a lesser documentation fee may be charged, however

the $35 as noted above will be deducted in any case.

EXAMPLE: $200 documentation fee charged, compensation

paid is $165 as the $35 is deducted.

Mortgage Brokers: May quote or charge the scheduled loan

origination fee applicable to the specific interest rate chosen, if

said rate includes an origination fee charge of up to 1.375% or

as amended from time to time, if it is not quoted and charged

this fee will be deducted from compensation paid. Additionally,

a $635 loan processing fee may be charged to the Borrower,

$600 of this fee will be paid as compensation to the Broker and

the remaining $35 is retained by ODVA for redraw document

fee. Both $600 and $35 (combined amount $635) are to be

collected from the borrower at escrow closing. These amounts

are to be reflected in the Fee Worksheet. Pursuant to the

Mortgage Brokers’ Loan Origination Agreement, at closing

ODVA will remit funds to escrow to pay the originating

mortgage brokerage 1.60% of the loan amount, plus the $600

processing fee. Mortgage brokers may also charge, but not

retain, all true pass-through costs such as appraisal, 1004-D, and

credit fees. If the origination/processing fee is not disclosed or

charged by Broker or Lender, it will not be paid as

compensation. Example: $100 processing fee charged, ODVA

will deduct the $35 and compensation paid is $65.

UNDERWRITING

OPTIONS

ODVA loans “may be” underwritten to FNMA (Fannie Mae)

conventional conforming guidelines. Additionally, other local

lending practices, underwriting policies, procedures and

standards may be applied as applicable to the proposed loan, or

as set forth or authorized by and through ORS and/or OAR.

All loans (Lender or Broker) “may be subject to” a full manual

underwrite upon receipt by ODVA. Oregon Administrative Rules

direct that, except for certain underwriting aspects, ODVA may

conform to FNMA underwriting guidelines. Any loan requiring

mortgage insurance is “subject to” the underwriting

requirements of the mortgage insurer and/or ODVA limitations

or restrictions. See first page narrative LENDERS/BROKERS.

CO-BORROWER

LIMITATIONS

FEDERAL LAW (not State of Oregon Law) restricts who may be

a co-borrower to any ODVA loan. Co-borrowers may only be the

legal spouse of the veteran borrower, including same-gender

marriages that were performed in states where such marriages

are legal; Oregon Registered Domestic Partners are acceptable

and evidence of the RDP is required.

UNDERWRITING

SPECIFICS

AGE OF DOCUMENTATION:

Asset and credit documentation age must comply with Fannie

Mae requirements. ODVA reserves the right to request

supplemental or more current documentation.

APPRAISAL

Appraisers: Must be licensed in the State of Oregon. There is

No approved appraiser list.

Appraisal Format: ODVA requires a full (URAR) Uniform

Residential Appraisal Report (Form 1004). (Form 1073 for

condos), for each loan, with no exceptions, even where DU

indicates a reduced appraisal allowance. Federal VA

appraisals are not accepted. Appraisal must note remaining

economic life, site, dwelling and other structure values (If the

appraisal is void of these values, the appraisal will NOT be

accepted).

Single Wide manufactured homes must have at least 2

comparable sales of similar type. If the appraiser is unable to

find comparable sales an “under contract to sell” may be

substituted.

ASSETS

ODVA overlay for both checking and savings account

statements are required for the most recent two-month

period. This is in addition to any asset account represented.

“Asset accounts that are represented must be proven”.

ASSUMABILITY OF LOANS

ODVA loans are NOT assumable. Loans are due and payable

upon Sale or Transfer.

AUTOMATED UNDERWRITING

DU FINDINGS are required on all loans where Mortgage

Insurance applies, and where an Approve/Eligible finding is

required. DU findings are encouraged to be submitted for all

other LTV transactions but are not required. Reduced

appraisal documentation is NOT accepted as a full URAR is

required for all loans even if DU notes otherwise. LP findings

are not accepted. NOTE: ODVA reserves the right to

mitigate DU findings in all cases. See Underwriting Options

above.

BI-MONTHLY PAYMENTS: Not available.

BORROWERS

Only a veteran who has established his or her ODVA eligibility

as described under “Loan Program and Eligibility”, above, is

program eligible. See the marginal “Co-borrower

Limitations” section above for recently expanded co-

borrower opportunities. Natural Persons Only: Only a natural

person may be a borrower. Trusts, corporations, and other

such entities are not eligible and therefor the loan must close

in the individual name(s).

BROKER-PAID CLOSING COSTS

ODVA does not require a mortgage broker to pay any of the

borrower’s closing or prepaid costs, exceptions may extend

to Loan Estimate violations. Mortgage Insurer guidelines must

be adhered to should it apply.

BUSINESS USE OF HOME - PROPERTY

Federal regulations strictly limit business use of property

securing an ODVA loan. Not more than 15% of the square

footage of the dwelling may be used for business purposes,

and any income derived from such use must be “incidental”

in nature. Any activity that allows a borrower to take a

“business use of home” tax deduction, such as a daycare

business, may disqualify the property as ODVA loan security.

Foster care for juveniles is an exception to this rule, as long as

such foster care is not the principal source of income for the

household.

CASH-OUT/BACK REFINANCE or

PURCHASE TRANSACTIONS NOT

ALLOWED.

CLOSING COSTS AND PREPAID

Any Fannie Mae approved source of funds for closing costs

and prepaid costs is acceptable. ODVA does not prohibit

interested-party contributions from paying usual and

customary closing costs and prepaid costs

Contributions must conform to the 3% / 6% / 9% FNMA rule.

CLOSING DOCUMENTS FOR LENDERS

ODVA will NOT purchase any loan that cites an entity other

than the originating lender as nominee, beneficiary, or

grantee. MERS TRANSACTIONS ARE NOT ACCEPTED!

CO-BORROWERS

FEDERAL LAW (not State Law) restricts who may be a co-

borrower on an ORVET loan. Co-borrowers may ONLY be the

lawful married spouse of the veteran borrower, including

same-gender marriages that were performed in states where

such marriages are legal; OR Oregon Registered Domestic

Partners. Documentation of Spousal or Partner status may be

required at ODVA’s sole discretion.) As such, non-spouse or

non-registered partners, friends, parents, siblings,

guarantors, or non-occupant co-borrowers are prohibited.

FARM/AGRICULTURE OR COMMERCIAL

USE: Prohibited transaction in ALL cases. See Matrix.

CONDOMINIUMS

The current maximum LTV for condos is 80%. An HO-6

insurance policy will be required should coverages be

deemed inadequate or Walls Out coverage is determined

from the Master Condo Insurance Policy. The Master

Insurance Condo Policy, Condo Questionnaire and Condo

Association By-Laws are required. There is no approved

Condo list published by ODVA.

CONSTRUCTION LOANS

ODVA does not offer course-of-construction loans. See

Refinance Section for maximum LTV. Takeout of the

Construction Loan is Limited to “Actual Costs” plus closing

costs to a maximum LTV of 80% of the Appraised value OR

the payoff of the Construction Loan plus closing costs to a

maximum LTV of 80% of Appraised value. Borrower vested

interest in title to the real property may affect the approval.

Call the ODVA Underwriter for specifics.

CONTINUITY OF INCOME

An applicant’s source of qualifying income is expected to

continue for at least three years. However, mitigating the

continuance of income and obtaining such documentation for

Social Security Disability, Social Security Retirement, VA

Disability, or other retirement income, is reserved for and at

the sole discretion of ODVA, Loan Underwriter or Program

Manager.

CREDIT

All loan applicants should have at least 3 reporting trade

lines seasoned 12 to 24 months. Call for exceptions. If

mortgage insurance is required, the underwriting guidelines

for that insurer shall prevail. ODVA does not publish

minimum credit score requirements, it is however primarily

an “A” and “B” credit lender. However, ODVA underwriting

may mitigate credit types with reasonable documented and

prudent explanations for derogatory history. If the LTV is

greater than 80%, mortgage insurer underwriting

requirements prevail with NO exceptions. A large down

payment (lower LTV’s) may mitigate negative credit history.

Adverse credit stemming from military activation: ODVA

recognizes that individuals were unexpectedly ordered to

extended military service; and that such service to country

often resulted in financial hardship. ODVA will consider

applications from impacted veterans with documented

evidence and on a case-by-case basis. Attempts to exercise

prudent underwriting latitude may be employed. However,

mortgage insurer underwriting guidelines may limit or

prohibit ODVA latitude in the underwriting process.

Alternative credit: ODVA will consider independently

verifiable alternative credit; however, mortgage insurers may

limit such consideration.

ODVA does not publish minimum credit score

requirements for any loan LTV of 80% or less.

Bankruptcy, Foreclosure, Deed-In-Lieu: ODVA may have

expanded latitude for considering applicants with a prior

bankruptcy, foreclosure, short sale or deed-in-lieu and a

minimum of 20% down. It is vital that such applicants be able

to demonstrate to ODVA that the derogatory report arose

from circumstances that were truly beyond the applicant’s

control and that are unlikely to recur. A history of re-

established credit is a must, and any bankruptcy case must be

officially closed, not just discharged. Generally, at least four

years must have passed since the negative event, however,

CONTACT the UNDERWRITER for mitigating EXCEPTIONS . If

mortgage insurance is required, major adverse credit

incidents must be at least 4 years old at the time of loan

application or as the mortgage insurer underwriting

guidelines require.

Collections, Judgments, Liens, Charge Offs etc. aggregates

per FNMA guidelines or DU findings may be mitigated at the

sole discretion of ODVA. Ongoing judgments for child

support, spousal support, etc. will be required to be paid

current with supporting proof. Derogatory credit explanation

letters should be included with the file when submitted.

Credit report: The credit report must be a tri-merge, or RMCR,

with scores. For an LTV at or below 80% a minimum of 3 trade-

lines may be required. If a borrower does not have 3 trade-

lines, a combination of least 4 trade-lines and/or alternative

credit/payment references may be required. Mortgage

insurance credit history requirements may be more stringent,

mitigation of exceptions are not allowed with MI structured

loans.

Credit Scores: If any loan requires mortgage insurance the

mortgage insurer underwriting requirements prevail with NO

exceptions and will take precedence over any potential ODVA

latitude or overlay.

ODVA does not publish minimum credit score requirements.

Any loan requiring PMI will default to the insurers UW

guidelines.

DEBT

Alimony, child support, spousal support and installment debt:

Such obligations must be included in ratios unless the

applicant can document that the obligation will terminate in

10 months or less or see FNMA guidelines. Business debt, Co-

signed debt, Court ordered Assignment of debt: Will follow

the FNMA (Fannie Mae) guidelines or in such cases where

Mortgage Insurance is required default to those Underwriting

requirements and/or valid DU findings that prevail. Mitigation

of all Non-Mortgage Insured loans may occur at the discretion

of ODVA, Loan Underwriter or Program Manager. Business-

paid debts may be excluded from the borrower’s ratio if

documentation is provided showing that the business pays

the debt. Generally, this will be 12 months of canceled checks,

and a corresponding deduction on the business tax return.

Insufficient evidence will require the inclusion of that debt in

the borrower’s debt ratio calculations.

Liens and Judgments: must be paid in full or will require full

satisfaction with proof, NO exceptions granted!

401-K/IRA/Insurance loans secured by the borrowers’ own

financial asset, such as 401-K accounts, IRAs, stocks, bonds,

etc., may be construed as contingent liabilities. However, if

the borrower provides a copy of the pertinent loan instrument,

the contingent liability may not be included in the debt ratio.

Note that if the borrower intends to use the same asset

account as part of the reserve requirement, the value of the

asset must be reduced by the outstanding loan amount. For

Student loans deferred that debt must be included as part of

the applicant’s recurring monthly debt. The monthly payment

can be obtained from the student’s payment letter or

forbearance agreement. (FNMA guidelines shall prevail for MI

required loans). ODVA will default to 1% of the outstanding

balance for payment calculation for student loans.

DOWN PAYMENT

Down payment funds may come from any Fannie Mae-

approved source for the same LTV ratio.

DOWN PAYMENT ASSISTANCE

PROGRAMS (DPA)

True grant programs, agency silent seconds, tribal donations

and the like are welcomed. However, ODVA will not

participate in a transaction involving any down payment

assistance program that requires an offsetting contribution

from the seller or other interested party or has any potential

or real financial impact on the Veteran borrower. Minimum

borrower contribution of own funds may be required with

greater than 80% LTV loans. All DPA programs must be

approved by ODVA and where mortgage insurance is

required, it must be approved by the respective Private

Mortgage Insurance Company.

ELIGIBILITY: must be established prior to

an application for an ODVA loan.

EMPLOYMENT

• Minimum 2-year job history. *

• Job gap may NOT be greater than 3 months. *

• Job gap exceptions or shorter length of employment

may be considered where a Graduate or

Undergraduate degree in the like field of employment

or prior military service or non-military service where

the new or current employment is in a like field. *

• Income trends must be stable or increasing.

• Declining income with job gap greater than 3 months

will not be accepted with LTV greater than 80%.

• Averaging of income or lower income calculations will

be applied where employment is less than 2 years with

no job gap. *

• Commission/Bonus only income or a heavy reliance on

this income type where employment is less than 2

years will not be accepted. *

• New future employment will require a Letter of

Employment offer. See FNMA or PMI underwriting

guides for additional requirements for this issue.

Exceptions may be granted where LTV is 80% or less. *

SELF EMPLOYMENT

A minimum of 2 years of self-employment is required or

where interest is at 25% or greater. Exceptions may be

granted where PMI is “not’ required. Personal and Business

Federal Tax Returns are required in all cases (do not submit

State returns). Included shall be K-1’s as applicable. Copies of

the tax returns must be signed and evidenced as filed with the

IRS. Interim Profit & Loss statements and Balance Sheet will

be required. Less than 2 years of self-employment may be

considered where LTV is 80% or less.

Tax return documentation with all Schedules will be required

for: Sole Proprietor, LLC’s, Partnerships, S & C Corporations,

Trust with assigned EIN, 25% or greater intertest or employed

by family. Additionally, incomes declared for capital gains,

dividends, interest, commissions/bonuses of 25% or greater

of base salary/income, foreign income or other income from

Schedules filed will require tax returns. Tax transcripts are not

accepted as substitutes and DU validation is not accepted.

Schedule E for 2 years are required for rental/lease income. If

none, a fully executed copy of the Rental/Lease agreement is

required and “must be” a minimum of a 12 month/1-year term

agreement.

FEE ADD-ONS

ODVA will add only the cost of a flood cert plus a $635

processing fee for a brokered transaction and $600 for a

lender transaction. Other than any applicable loan origination

fee, there are no other ODVA fees associated with a

transaction. NO PRICING ADJUSTMENTS except for specific

rates chosen.

FUNDING FEE: None.

FUNDS TO CLOSE

Funds to close may come from any approved source by FNMA

(Fannie Mae) or approved Mortgage Insurance provider. Two

months bank statements are required coupled with REO sale

proceeds Final SS and paper trail supplement.

LOAN ESTIMATE/CD/LE ERRORS

LENDERS will be expected to cure and document any Loan

Estimate tolerance issues prior to presenting the loan to

ODVA for purchase.

IMPOUNDS

Property tax, hazard insurance and applicable mortgage

insurance impounds are required where LTV exceeds 80%.

Impounds for 80% or less LTV loans are “voluntarily.” Note

that if impounds are elected to be held, both taxes & hazard

insurance(s) will be required to be held in escrow holdings

and not just one, there are no exceptions. There are no fees

for waiver of impounds. ODVA reserves the right to require

impounds for any loan LTV at or less than 80%.

INCOME DOCUMENTATION

• All income documentation for the most recent 2-year

period is required, it must include the following as

applicable for each loan submitted: 2 months/60 days

paystubs, W-2’s, 1099-R’s, SSA 1099’s, 1099 Misc.

Retirement/Pension statements/letters, Federal Tax

returns which verify and represent any additional

incomes such as, but are not limited to, Capital

Gains/Loss, Installment Sale income, Interest income,

etc. that have been continual per Federal Tax returns.

• Asset depletion, trailing Co-Bor. income or expense

account reimbursement will NOT be considered.

Exception may apply to where LTV is 80% or less.

INCOME LIMITATIONS

There are no minimum income restrictions. Prudence is

applied for debt servicing requirement (DTI) ratios.

INSURANCE, HOMEOWNERS/HAZARD

ODVA

Loss Payee/Additional Insured

Clause:

Oregon Department of Veterans’ Affairs

P. O. Box 800099

Dallas, TX 75380

The maximum deductible is $2500 or 1% of the face value of

the policy for all dwelling types. The insurance policy/binder

coverage shall be at least the appraised value, replacement

cost of the improvements may be considered. This includes

Other Structures. Any exception to higher deductibles or

coverages must be pre-approved for both Brokers & Lenders.

INSURANCE: CONDO PROJECTS

Condominiums: An HO6 policy is required for “Walls Out”

coverage where not evidenced or contained in the

Condominium Master Insurance Policy. The minimum

coverage required is 20% of the Loan Amount or Appraised

Value whichever is the greater. Call for exception.

LOAN TO VALUE

NOTE: See the matrix for LTV maximums.

LOCKING A LOAN – 60 DAY TERM

To lock a rate/reserve funds submit the LOCK REQUEST

FORM via email to: submissions@odva.oregon.gov

ODVA does not offer rate lock extensions.

MANUFACTURED HOUSING

Must be real property. Double wide or larger MH must be a

minimum of 600 square feet. Single Wide must be 12 feet or

greater in width and a minimum of 400 square feet. All

Single Wide MH must have a manufacture date of 10 years

or newer as dated from the effective calendar year or

appraisal date to qualify for financing. No restrictions to MH

movement, LTV requirements are 80% or less. See Matrix.

See appraisal requirements for Single Wide MH.

MAXIMUM LOAN AMOUNT

The ODVA maximum loan amount for 2024 is $766,550.

MERS RELATED TRANSACTIONS

Not accepted under any circumstance and will be returned.

MINIMUM LOAN AMOUNT

NONE

MORTGAGE INSURANCE

Required for all loans greater than an 80%

LTV. ODVA reserves the right to mitigate

any AUS D Approve/Eligible findings.

NUMBER OF LOANS/OPEN LOANS

Only ONE open ODVA loan is allowed at a time. The maximum

number of loans per lifetime is 4.

ODVA FEES: See Broker/Lender section.

PROPERTY REQUIREMENT/LIMITATION

Federal rules impose restrictions on the types of property that

may secure an ODVA loan. These include but are not limited

to:

• Owner Occupied Primary “Single” Family Residence.

• No ADU or second/additional dwelling allowed.

• Owner must occupy within 60 days of closing.

• Property securing an ODVA loan must be located

within the State of Oregon.

• No Multiple or Business mix use properties allowed.

• Manufactured Home as Real Property only.

• Maximum LTV/CLTV see matrix.

• No land lease or lease hold estates.

• Tiny Homes are not allowed. See minimum sq. ft.

RATIOS

ODVA has no fixed maximum DTI ratio for loans where the

LTV is 80% or less. Loan files are evaluated to ensure

prudence for the ability to repay. BROKERS, please call for DTI

ratio exceptions greater than 50.00%. PMI DTI ratio

underwriting will be adhered to.

REFINANCES

ODVA should not be viewed as a refinance lender, Federal tax

laws controlling ODVA’s lending program restricts

refinancing ability. ODVA cannot refinance a property where

the vested title ownership of 18 months or longer. Exceptions

to the 18-month timeline for construction loan take-outs;

please see the Construction Loan section. ODVA is prohibited

from refinancing its own loans. No cash back of any amount

is allowed. Construction Loan takeout and the Refinance of

another lenders mortgage may not exceed an 80% LTV, it may

pay off an existing subordinate lien only if it is a Purchase

Money 2

RESERVES/ASSETS

Liquid Reserves: Borrowers will be required to have a

minimum of two months PITIMIHOA in reserves after closing.

Exceptions may be approved on a case-by-case basis where

LTV is 80% or less with strong credit profile and where DTI

ratios are at or lower than 35%. Tax and Insurance Reserves

are required if the LTV exceeds 80%. Loans with LTV ratios at

or below 80% may have impounds waived, unless impounds

are required to be held as part of the loan approval conditions.

See Impounds.

SECONDARY FINANCING/PURCHASE

ODVA cannot/does not offer second lien loans. ODVA allows

purchase money second financing, the ODVA first lien

position must be 80% or less.

SELLER-PAID CLOSING COSTS

ODVA does NOT require a Seller, Lender or Broker to

contribute to the buyer’s closing costs.

SOURCE OF FUNDS

ODVA is sensitive to the source of funds. It is expected that

each file will contain a minimum 60-day history of funds used

for closing, coupled with a HUD-1/Settlement Statement for

an REO sale will be provided at closing. Significant recently

acquired funds must be documented through a paper trail.

SEE FNMA OR MORTGAGE INSURER GUIDELINES OR ODVA

GUIDELINES AS APPLICABLE.

SPRING/SURFACE WATER SOURCES:

ODVA may not lend against properties with springs or other

surface water flow as a domestic water source, exceptions

may be mitigated.

If a waiver/exception is granted, the following shall be

adhered to with NO exceptions.

• Credit position/scores must be strong

and absent of “any” derogatory credit

history of any kind.

• Reserve liquidity position must

exceed 24 months of total debt

servicing.

• Residual income position must be

strong and DTI shall not exceed 40%.

• LTV must be at 80% or less.

Potable tests must be completed at both the spring or water

source, holding tank and end piping to residence. Holding

tank(s) shall be in place in all situations, including spring box

or spring house. Evidence of protection from tampering,

contamination from debris, animals, or other potential

contaminates must be in place.

TAX RESERVES – See Impounds

TRUSTS

Loans may not be closed in the name of a Trust. After closing

transfer into the Trust (Revocable only) may be considered. A

copy of the Trust must be submitted along with a letter of

request for transfer to the Trust.

UNDERWRITING

By Oregon Administrative Rule, ODVA “may” underwrite to

FNMA (Fannie Mae) guidelines or other local or regional credit

guidelines. AUS (DU Approve/Eligible) findings do not

guarantee approval. ODVA reserves the right to mitigate

FNMA or other guidelines as ODVA policies or restrictions

supersede this in “all” cases.

UPCHARGING - PROHIBITED

WELL TESTS – PURITY & FLOW

If a property is served by a domestic well, ODVA requires

copies of the results of purity, nitrate and arsenic test, etc.

such tests are required by RET Law when a property is served

by a domestic well See (RET) Real Estate Transaction Law. In

addition, a 4-hour well flow/pump test is required. Well flow

test of less than 5 GPM “may be” required to meet and install

an on-site water storage. Well flow tests where a less than 5

GPM flow rate may not be accepted, at the sole discretion of

ODVA. This applies to purchase money transactions only.

Exceptions “may” be considered with strong credit, income

and reserve positions. No exceptions will be granted where

PMI is required. These Well tests are NOT waived.

END DOCUMENT