Or. Admin. R. 274-045-0441 - Terms and Requirements of Veterans' Home Improvement Loans
(1) The veterans'
home improvement loan must be placed in the first lien position on the security
or be an immediate subsequent lien to an existing ODVA lien. The first ODVA
lien and any immediate subsequent lien made on the security by the Director
shall be deemed collectively as a first lien on the security.
(2) The net appraised value will be used as
the basis for determining the maximum veterans' home improvement loan subject
to statutory limitations and remaining loan right.
(3) When a veterans' home improvement loan is
made on a security with an existing balance owed to the Director, the total of
the unpaid balance of the existing loan and the veterans' home improvement loan
shall not exceed 80 percent of the net appraised value as determined by the
Director.
(4) When a veteran' home
improvement loan is made on a property where no balance is owing, the veterans'
home improvement loan shall not exceed 97 percent of the net appraised value as
determined by the Director. If the loan-to-value ratio is greater than 80
percent of the net appraised value, the loan must be insured by mortgage
insurance consistent with ORS
407.485.
(5) The borrower shall not receive any cash
back from the home improvement loan.
(6) All existing nonamortizing ODVA loans on
the security must be reamortized to bring the principal and interest payment
and final payment date into conformance with ODVA policy as identified in the
Processing Manual. A copy of the manual is on file with the Oregon Department
of Veterans' Affairs, 700 Summer Street NE, Salem Oregon, and available to the
public during normal business hours. All other terms of the existing loan on
the security remain unchanged.
(7)
Depending upon the loan amount, the maximum term of a home improvement loan may
not exceed 20 years.
Notes
Publications: Publications referenced are available from the agency.
Stat. Auth.: ORS 406.030, ORS 407.115, ORS 407.125 & Art. XI-A Or Const
Stats. Implemented: ORS 407.115, ORS 407.125 & Art. XI-A Or Const.
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