HB 3188 moves: 1st time homebuyer fund, nixes down-payments

House Bill 3188 creates new home buyer fund, nixes down payments.
By Taxpayers Association of Oregon
OregonWatchdog.com

The Oregon Housing and Homelessness Committee unanimously approved a House Bill 3188 which allows  first-time home-buyers to purchase a home without a down payment.

House Bill 3188 creates a new fund called ‘Welcome Home Assistance Program Fund’ to provide financial assistance to housing loan lenders. If a first-time home buyer defaults and is unable to pay their mortgage-  causing foreclosure – then this new state fund will cover part of the lender’s loss, (up to 20%) of the home’s purchase price.

House Bill 3188 now heads to the full House floor for a wider vote.

House Bill 3188 summary reads, “Tells a state agency to back home loans that a lender makes to first-time buyers in this state. Says what kinds of loans qualify and how a lender must claim a loss from a loan. Creates a fund to hold moneys for the loan guarantees. Directs the Department of Consumer and Business Services to establish a program to guarantee against losses in mortgage loans that lenders extend to first-time home buyers. Specifies which mortgage loans qualify for the guarantee and the qualifications and duties of first-time home buyers. Specifies circumstances under which a lender may make a claim and documentation a lender must provide as support for the claim. Establishes the Welcome Home Assistance Program Fund and appropriates moneys in the fund to the department to carry out the purposes of the Act. Declares an emergency, effective on passage.”

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