P age B7 T he P ortland O bserver • M ay 11, 1994 HUD Reduces Out-Of-Pocket Premiums On FHA Loans W ith interest rates on the rise, some consumers may feel that home ownership is out o f their reach. But owning a hom e is m ore o f a reality than ever, due to recent reduc tions in out-of-pocket prem ium s that eligible borrowers m ust pay on loans insured by the Federal Housing A d m inistration (FHA). These are loans that typically require less down paym ent and fol low more liberal underw riting guide lines than conventional m ortgages. The U .S. D epartm ent o f Housing and Urban D evelopm ent (HUD) re duced the up-front insurance premium to 2.25 percent o f the loan am ount, dow n from 3 percent. This reduction can save home buyers approxim ately $1,140 on a loan o f $151,725, w hich is the m axi mum m ortgage am ount (in desig nated high-cost areas) that FHA will insure on single-fam ily home loans. An estim ated 27 0 ,0 0 0 additional households may qualify for FHA loans under the new reduction. M inim um down paym ents typi cally range from 3 to 5 percent for FH A -insured loans, which feature flexible underw riting guidelines. C red it considerations include alternative sources o f credit, review o f isolated credit inconsistencies, and the borrow er’s present rental/mort- gage ratio. In addition, these loans do not have incom e lim itations, specific re quirem ents on em ploym ent duration, or cash reserve requirem ents. A nalysis o f income and credit is applied equally to all applicants re gardless o f race, color, creed, reli gion, sex, national origin or m arital status. “ Although interestratesare vola tile, FH A -insured loans can help more consum ers enter the home ownership fold,” said G reg Lum sden, executive vicepresident o f the retail division for Open House For Senior Housing Operators T h e L eg en d s se n io r c o n d o minium project will be hosting an Open House on Friday, M ay 13th from 2-6 PM for all senior housing operators at the model residence and inform ation office located at 1111 SW 19th, adjacent to the M ultnomah Athletic Club. The Open House will feature tours o f the model residence, com plim entary refreshm ents, a door prize draw ing and inform ation about the 96 unitcondom inium project. For further information please contact Linda Johnston at 223-7941. back guarantee. Escrow Money Refunds: Free Brochure: For a free brochure about the property “tax brake kit”, send a self- addressed, stam ped envelop to: Tax Kit, 912 E. Main Street, Suite #316, Stam ford, CT 06902. The kit may be ordered by sending a check for $39.95 plus $5 for shipping and handling to the sam e address. C redit card users may call 1-800-548-8282. Let Us HelpYou Build And Design Your Custom Ad Call For A Quote 288-0033 before you dig,” explained B race Paskett, m anager of Engineering at Northwest Natural Gas. “ If a person doesn ’ t call and damages underground services, they can be held liable for all repair costs for damaged utilities, not to mention the hazard that exists by rapturing a gas pipe or breaking an electrical cable. “For instance, the polyethylene pipe that is widely used for natural gas distribution is very susceptible to dam age from tools such as shovels and post hole diggers. These are dam ages that can be avoided by calling before digging,” he said. “O f course w e don’t want people dam aging our services, but most im portandy, we Spring brings thoughts o f hom e improvements -- yard work, garden ing, home repairs. Before starting any work that requires digging. N orth w est Natural G as is reminding people to notify underground utilities. Not only is this necessary for safety, but is required by law. Notification can be done easily and free of charge by calling a notifi cation service tw o working days be fore excavating. All it takes is one call. The service will alert participat ing underground utilities to locate and mark their lines. “It doesn’t matter if a person is planting a tree o r building a fence on their property, it’s the law to call tion: FHA m ortgages allow home buyers to purchase a home with a five percent dow n payment and to finance all non-recurring closing costs. Bor rowers may use 41 percent of their gross income toward mortgage debt D e p a rtm e n t of V eterans Af fairs: VA m ortgages allow veterans or active service personnel to pur chase homes with no down payment, up to the current maximum price of $ 184,000. There is no purchase price limitation for buyers able to make a down paym ent. Like the FHA pro gram , VA borrow ers can put up to 41 percent o f gross income toward their mortgage debt. Mortgage Revenue Bonds/ Mortgage Credit Certificates: These m ortgages typically require a minimum o f 5 percent down and have interest rates that are 1.5 to 2 percent age points below conventional 30- year fixed rates. State and local hous ing agencies offer these loans only to first time home buyers. C om m unity H om e B uyer Pro g ra m : The Federal National M ort gage A ssociation (Fannie M ae) and the Federal Home Loan M ortgage Corporation (Freddie M ac) offer Community Home Buyer Program loans. These program s require a 5 percent down paym ent, 3 percent o f which may be a gift. To further help buyers qualify, applicants may use 38 percent o f their gross income. C urrently, the maximum loan am ount available is $203,150. There are many options for first-time home buyers. A professional real estate agent will know from experience which lenders in your area offer a lower down payment program that will m eet your unique needs. For more information contact Steve Carter at Century 21 North west Region at 800-342-0054. want to make sure our custom ers are safe.” Paskett said that each year dam age to approximately 1,500 natural gas facilities can be attributed to ex cavation. Nearly half o f the dam ages are due to the failure o f the excavator to notify Northwest N atural o f their intent to dig. The rem aining dam ages are attributed to ex cavators who w eren’t careful when digging around natural gas lines. “ Northwest Natural will identify the location o f the natural gas pipe with yellow paint. The law requires that anyone digging in the marked area must hand excavate with a shovel instead o f using a backhoe and must take due care not to damage the pipe once it is exposed,” Paskett said. The Utilities Notification Center can be reached at 246-6699 in the Portland metro area, 696-4848 in Clark County, W ash., and 1 -800-332- 2344 in all other areas o f Oregon, except Clatsop and Columbia Coun ties. In Clatsop and Colum bia coun ties, contact the Utilities Underground Location Center at 1-800-424-555. In Cowlitz County, W ash., call the Utilities Council at 425-2506. Remember, don’t take a chance on digging into buried natural gas, water, sewer, telephone, cable televi sion or electric lines. Call before you dig. It’s free and it’s the law. Free House Painting for Boise Neighborhood Residents Free house painting assistance is variable now to low -incom e resi- m tso f North Portland’s Boise Ncigh- orhood. Through the Boise C ontinu ity Revitalization, Em ploym ent, and raining Effort (CREATE), five home in the Boise area will be selected to :ceive free exterior painting thissum- mer. Boise CREA TE is acom m unity- ised effort designed to revitalize the sighborhood w hile providing em- loyment and training to area youth. . team o f five youth will prep and rime the houses during a seven week aining program in which they will a rn professional painting skills as rell as general job readiness. Once te youth have prepped the houses, icy will be joined by over 50 volun- jers who will work to paint the houses uring a one-day volunteer blitz on Saturday A ugust 13. Homeowners who live between N Frem ont and N Skidm ore, M artin Luther King and Interstate and are interested in nominating their houses for free assistance should contact Kris at 335-0947 by May 15. Community residents, service clubs, businesses, schools, and other groups who are interested in volunteering for the A ugust 13 painting day are encour aged to contact 335-0947 as soon as McMurphy's Appliance Center lier fit Dryer s199°° Thy filile lerotors From $129°° McceMwlifib HU I'm The “New” Kid In Town. My Name Is... Blaque Elegance A little o f this A little bit o f that Plus All your floral needs possible. Boise CREATE is co-sponsored by the Boise Neighborhood Associa tion and Housing O ur Fam ilies, a non-profit community developm ent corporation working in the Boise area. The project is funded by a Com m u nity Initiatives G rant from the B u reau o f Community D evelopm ent Hfiab/woM, TPlaTemenI afa One o f ff M inai Here are some common pro grams you are likely to come across: Federal Housing Administra Northwest Natural Gas Cautions To Call Before You Dig Putting The Brakes On Ownership Costs A study by the Attorneys G eneral o f 26 states show ed that m ortgage lenders often keep excessive am ounts in m ortgage escrow (im pound) ac counts for property taxes and insur ance. R e fu n d s o f $ 4 0 0 to $ 1 5 0 0 a re n o t u n c o m m o n , a c c o rd in g to M o rtg a g e M o n ito r (1 -8 0 0 -2 8 3 - 4 8 8 7 ), a firm w h ic h c o n d u c ts m o rtg a g e a u d its in a ll 50 sta te s an d h a s h e lp e d m any b o rro w e rs r e c o v e r o v e rc h a rg e s . Y ou m ay a lso h a v e y o u r m o n th ly p a y m e n ts re d u c e d , sa y s the firm . A free c o n s u lta tio n is a v a ila b le . uying Your First Home There’s no question about it, buying a first home is a big financial commitment. However, because o f the tax ad vantages afforded to homeowners, buying a home can also be one of the best financial decisions you’ll ever make. Many would-be homeowners re main renters simply because they mistakenly believe mortgage lend ers require 20 percent o f the pur chase price as a down payment. But, the standard 20 percent is fast becoming a relic of the past. In re c e n t y e a rs, le n d e rs have becom e m ore fle x ib le in w o rk in g w ith first-tim e hom e b u y e rs by c re a tin g a v a rie ty o f sp e c ia l p ro gram s th a t re q u ire sm a ll dow n p aym ents. These programs, com bined with the most favorable interest rates in two decades, have encouraged rent ers to consider the trem endous ben efits o f home ownership. Countryw ide Funding Corporation, the nation’s largest m ortgage lender and servicer. “It is C ountryw ide’s goal to help more families own homes o f their own by offering FHA loans with low down payments, flexible underw rit ing guidelines and recently reduced costs on the up-front p rem ium ,” Lumsden said. Home buyers interested in learn ing more about FHA-insured loans should contact their local Countrywide office or call 800-877-LOAN to locate the branch most convenient to them. Countryw ide Funding C orpora tion originates and services single family home loans. The nation’s largest mortgage lender and servicer, Countryw ide was founded in 1969 and is celebrating its 25-year Anniversary in 1994. The com pany is headquartered in Pasadena, Calif, and has more than 350 offices across the nation. Hints For Homeowners: You could find it surprisingly e a sy -a n d com pletely le g a l-to get a reduction in real estate taxes and pos sibly even a refund o f excessive m ort gage escrow paym ents form your lender. Only five percent o f property ow ners everappeal their assessments, yet 80 percent of those who do suc ceed in getting a break, often saving hundreds or thousands as a result, according to a study in ten m ajor cities by the N ational T axpayer’s Union. T h at’s why licensed real estate broker and author Joseph A lm edia created a Homeowners Property Tax Reduction Kit, recently featured on CNN. The step-by-step “Tax Brake K it” is dec xl to show American hom eow ners how to cut their own taxes. Each kit includes proven m eth ods in a 160-page easy-to-follow manual; state-by-statc procedures and local agency phone numbers; a Q & A audio tape; and a collection o f simple- to-use forms. It com es with a money- Tips On \V c m c lla Bolton fr y 407 N £ . Mason «Sc M LR I Portland, OR 97211 I (503) 287-2581 -------- J ) i^M ore value for your money...that’s why State Farm insures more homes than anyone else. 77 nges From $129°° ü itffa jk r ( uyinnt . li 'futan .TfouAiye .UM« (fe n Michael Harper 4245 S.W. Corbett Ave. Portland, OR 97201 221-3050 Open Mon. - Fri. 9:00am to 5:00pm o M w u to y - fifa id a y Saturday 10:00am to 2:00pm l:C 0 -7 :0 0 /M n Sunday Closed • ’ L « IN S U « A N C ! 2808 dVis M ia llin Ttd/ei fiKènff fißlvd. fifiie V M h o feyfja cftivn (503) 288-5248 a«*1 • f • |0 1 1 N6 MIK * J *288-3233 Soles . Service . Parts » ' CALL ME. State Farm Fire and Casualty Com pany Home Office. Bloomington, Illinois ti k e a gixkl neighbor. State Farm is there