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
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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-
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