813-070-0035 Eligible Borrowers (1) To be eligible to receive a Program Loan, an Eligible Borrower shall, on the date of application: (a) Be a resident of Oregon, and, unless otherwise approved by the Department, a resident of a Reinvestment Neighborhood designated by the relevant Participating Local Government, or a resident of a Target Area; (b) Be a person whose total household Income does not exceed the lesser of: (A) Median family income in the area where the housing is to be provided, as established by the Department pursuant to the Act; or (B) The maximum established by the relevant Participating Local Government for Eligible Borrowers residing in a Reinvestment Neighborhood. (c) Possess the legal capacity to incur the obligations of the Program Loan; (d) Have a credit standing acceptable to the Department; (e) Have at least a one-third interest in one of the following types of ownership in the property to be improved: (A) A fee title; (B) A life estate; (C) A fee title or life estate subject to a mortgage, deed of trust, or other lien securing a debt; or (D) A mutually binding contract for the purchase of the property where the Borrower is rightfully in possession and has the benefits and burdens of ownership of the property, and the purchase price of which is payable in installments. (f) Agree to occupy the property to be improved as a principal residence by the date of completion of the improvements or 60 days from the date of the note, whichever is earlier; (g) Meet requirements established by Section 143 of the Internal Revenue Code of 1986, as amended, which requirements are described in OAR 813-070-0065; and (h) Not have a prior outstanding Program Loan. (2) Applications for Program Loans shall be made on forms prepared or approved by the Department. Approved Lenders shall provide such forms to prospective applicants and take normal and appropriate measures to verify the information given. Subject to the provisions of OAR 813-070-0050 regarding refusals of Program Loans, the Approved Lender shall determine qualifications of an applicant as an Eligible Borrower. (3) The acceptability of the applicant’s credit standing shall be determined after thoroughly evaluating the applicant’s credit, taking into account such factors as: (a) The ratio between the applicant’s stable monthly income and estimated housing expenses, including repayment of the Program Loan; (b) The ratio between the applicant’s stable monthly income and the estimated monthly payments on all indebtedness of the applicant, including the Program Loan; (c) The applicant’s ability to accumulate wealth or equity in real property; (d) The history of the applicant’s previous ability to meet debt service requirements; and (e) Any other factors commonly considered by prudent institutional mortgage investors, such as prior bankruptcy of the applicant, history of slow payments on previous obligations, job tenure, frequent changes of residence and the existence of lawsuits, judgments or foreclosures involving the applicant. [Publications: Publications referenced are available from the agency.] Statutory/Other Authority: ORS 90.800 - 90.840, 91.886, 183, 456.515 - 456.723 & 458.210 - 458.650 Statutes/Other Implemented: ORS 456.690 History: HSG 8-1991, f. & cert. ef. 12-23-91 HSG 2-1991(Temp), f. & cert. ef. 8-7-91 HSG 16-1989, f. & cert. ef. 11-3-89 HSG 3-1989(Temp), f. & cert. ef. 6-8-89 1HD 12-1984, f. & ef. 9-4-84 1HD 5-1983, f. & ef. 9-2-83