ORS 407.205
Application for loan

  • amount of loan
  • limit on number of loans

(1)

A person qualified under Article XI-A, section 3, of the Oregon Constitution, to apply for a loan for the acquisition of a home or farm must submit the application to the Department of Veterans’ Affairs pursuant to the provisions of this chapter.

(2)

An applicant may not borrow more than the maximum amount allowed for a loan under this section.

(3)

The maximum amount allowed for a loan made under this section may not exceed the least of:

(a)

The maximum original principal balance permitted on a single-family first mortgage loan published by the Federal Housing Finance Agency, at a rate of interest provided by ORS 407.325 (Rate of interest on loans);

(b)

The maximum loan-to-value ratio or combined loan-to-value ratio permitted by the United States Department of Veterans Affairs for its Home Loan Guaranty Program (38 U.S.C. 3701 et seq.; 38 C.F.R. part 36); or

(c)

If the property to be acquired with the funds from the loan is a farm, 90 percent of the net appraised real property value.

(4)

When calculating the maximum amount allowed for a loan under this section, the Department of Veterans’ Affairs shall exclude:

(a)

Funds disbursed under ORS 407.145 (Purchase and control of property) (2) and 407.275 (Terms of loan to veteran and transferee) (4); and

(b)

The amount of a loan that has been repaid, or for which the property securing the loan has transferred by deed or otherwise, if the property:

(A)

Is destroyed by fire or other natural hazard; or

(B)

Is taken through condemnation or lost or disposed of for a compelling reason devoid of fault on the part of the applicant.

(5)

An eligible person may not receive or, under ORS 407.305 (Assumption of previous loan by eligible veteran), assume more than four loans under this chapter.

(6)

For the purposes of this section, an applicant owns a home when the applicant has fee simple title to the home or is the purchaser of the home under a contract of sale or other instrument of sale. Earnest money or preliminary sales agreements, options or rights of first refusal are not contracts or instruments of sale under this subsection. [Formerly 407.040; 1989 c.677 §5; 1991 c.67 §97; 1993 c.192 §1; 1997 c.36 §1; 1999 c.41 §1; 2005 c.625 §30; 2007 c.43 §1; 2013 c.227 §1; 2014 c.30 §1; 2019 c.223 §10]

Source: Section 407.205 — Application for loan; amount of loan; limit on number of loans, https://www.­oregonlegislature.­gov/bills_laws/ors/ors407.­html.

See also annotations under ORS 407.040 in permanent edition.

Attorney General Opinions

Effect of two-loan and dollar limitations, (1979) Vol 39, p 763; constitutionality of provision prohibiting more than two loans, (1980) Vol 41, p 187

407.075
Purpose 407.085
Definitions 407.087
Definition of “veteran.” 407.095
Policy against foreclosure 407.125
Loans to qualified person 407.131
Discount of principal 407.135
Authority of department 407.145
Purchase and control of property 407.155
Execution and custody of documents 407.165
Authority to hold certain funds received from borrower 407.169
Escrow accounts 407.177
Loan processing and servicing contracts with lending institutions 407.179
Additional powers delegated to lending institution 407.181
Authority of lending institution 407.185
Cash flow projection 407.195
Loans not being amortized 407.201
Required disclosure of credit information and loan terms 407.205
Application for loan 407.215
Certain loans excludable from maximum loan amount 407.225
Processing of loan application 407.275
Terms of loan to veteran and transferee 407.285
Rate of interest payable by certain transferees 407.295
Transfer to spouse 407.305
Assumption of previous loan by eligible veteran 407.315
Interest rate for veteran’s assumption 407.325
Rate of interest on loans 407.327
Department to prescribe fixed or variable interest rates 407.335
Rate of interest payable by transferee 407.349
Late charges authorized for periodic payments 407.375
Sale of foreclosed properties 407.377
Sale or management of foreclosed property under personal services contract 407.385
Prohibition against using loan for purpose other than farm or home acquisition 407.415
Issuance of bonds 407.425
Factors considered before requesting bond issuance 407.435
Issuance of bonds for tax payment 407.465
Loan cancellation life insurance 407.475
Persons insurable under ORS 407.465 407.480
Definitions for ORS 407.480 to 407.490 407.485
Agreements for mortgage insurance 407.490
Mortgage insurance claims 407.495
Oregon War Veterans’ Fund 407.505
Loan moneys to be reserved for borrower prior to loan commitment 407.515
Oregon War Veterans’ Bond Sinking Account 407.525
Transfer of sinking account moneys to veterans’ fund 407.555
Auditing and payment of claims 407.565
Revolving account 407.595
Loans not subject to execution or assignment
Green check means up to date. Up to date

Current through early 2024

§ 407.205’s source at oregon​.gov