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If you are thinking about buying but are a little overwhelmed with the current interest rates or wondering what options for lending are available this should give you a good starting point. There are several 0 money down loans available, we have some assumable VA loans also available at 3% +/- interest rates right now and rate buy downs are very common also right now with sellers contributing several thousand dollars towards the buyer options and/or closing costs.

We work closely with a handful of really great lenders so if you would like some references just let me know and I am happy to get those to you.

USDA - 0% Down Payment

Through this program, USDA Rural Development works directly with individuals and families who are interested in purchasing a home in an eligible rural area. These homes must be owner occupied so they would not work for an investment property. Much of Oregon is considered rural and lenders that offer USDA loans can verify if the area you are interested in would fall within those boundaries. These loans are income based currently at a maximum income of $110,650 for a family of 1-4 and $146,050 for a family of 5+.

FHA - 3.5% Down Payment

The FHA Home Loan (Federal Housing Administration) Is One of The Most Popular Government Loan Programs for 1st Time Home Buyers but is not limited to first time home buyers only. FHA loans have been around since 1934. FHA which is part of HUD (Housing and Urban Development) insures the loan, so your lender can offer you a better deal with lower down payment limits of 3.5% and easier credit qualifications with a credit score of 580 or higher depending on the lender. FHA does have lending limits depending on the county you live in from $472,030 to $690,000.

VA - 0% Down Payment

Who qualifies? Veterans, including members of the National Guard and activated reservists. 100% financing with VA loans. There are VA funding fees however, there are some exceptions such as a service-connected disability. Some veterans and qualifying surviving spouses may qualify for a Funding Fee Exemption. As long as you're still eligible for a VA loan and are able to qualify with a lender, there's no limit to how many of these mortgages you can take out over the course of your life. There is a misconception that you can only use a VA loan once in a lifetime.

ODVA - 0% - 5% Down Payment

The Oregon State Department of Veterans Affairs is a state-level agency serving Oregon veterans, family members, and caregivers. This agency is not part of the Federal-level Department of Veterans Affairs but provides similar services including a veteran loan program that is completely separate from the federal VA mortgage benefit. The Oregon Department of Veterans Affairs Home Loan Program (ODVA) offers qualifying veterans fixed-rate financing for owner-occupied primary residences. Federal VA home loans feature no VA-specified loan limit, but the ODVA program provides home loans to veterans for purchases up to the Fannie Mae loan limit for the area.

Assumable - Down Payment Will Vary

One of the under-the-radar benefits of VA and FHA loans is that they're assumable. That hasn't meant much in recent years, with mortgage rates at modern-day lows.

But with today's higher rates, the ability to essentially take over someone else's mortgage -- including their low interest rate and monthly payment -- is a huge opportunity. With a VA loan assumption, you are inheriting a Veteran's active mortgage. You don't have to be a Veteran to assume a VA loan, although there are some risks involved for Veteran homeowners who allow civilians to take over their mortgage.

Rate Buy Down

A rate buy down is where the seller agrees to pay a percentage or flat amount towards buying down the buyer’s interest rate. A buydown is a way for a borrower to obtain a lower interest rate by paying discount points at closing. Discount points, also referred to as mortgage points or prepaid interest points, are a one-time fee paid upfront. In the case of discount points, the interest rate is lower for the loan term. There are a multitude of options for this and a lender can definitely look at each individuals long and short term goals to see which option best suits their needs.

Hard Money - 25% Down Payment & Up

A hard money loans are typically a short-term loan based chiefly on the value of the property used as collateral and not creditworthiness. Most hard money lenders required at least 25% down payment and have higher upfront fees. These loans can be useful for unique properties that will not finance with traditional lending or bridge loans while waiting for a home to sell and many contractors use them for construction loans and investors use them for flipping projects.

These loans can usually close quickly and are a much easier process however they do come at a higher price. Most hard money loans are structured as interest only loans, followed by a large balloon payment in a set amount of time, typically 2-5 years.

Airbnb, which started in 2007 is now one of the top online platforms for short-term rentals (STR) with nightly prices usually lower than hotels.  In my search there were only a small handful of properties available in Prineville and about 6 in Powell Butte so I feel like there is definitely room for expansion in these areas.

Property owners, called “hosts” are allowed to list their property or a portion of their property on the platform and renters, referred to as “guests can search the platform for a single room to an entire house.  Airbnb allows guests to search in a variety of ways for the perfect vacation home from amazing pools, lake properties, cabins, activities such as golf or skiing not just by price.  Guests and Hosts can leave reviews for each other so not only can a guest decide if the property is a good fit for them, but the host can also review the guests to make sure they are a good fit to share their property with. 

Still on the fence about if Airbnb is for you.  Let’s chat about the benefits of short-term rentals. 

• Higher daily rents than a month-to-month rental
• Less wear and tear than long term tenants
• Airbnb offers protection from damages with their Host Guarantee
• You decide when you have guests, need space for family or don’t want guests while you are away, block those times out.

HIPCAMP which started in 2013 is “one of the most comprehensive resources for discovering and booking unique outdoor stays including tent camping, RV Parks, cabins, treehouses and glamping”.  Central Oregon has so many beautiful areas to explore, you could even offer day trip suggestions or connect with locals for bike or paddle board rentals or horseback riding adventures. 

Anyone with a property that helps connect people with nature can be a Hipcamp Host.  Have an RV space, land, or pond with room to pitch a tent, farm or ranch, vacation rental?  Hipcamp is a growing community of respectful people looking to get outside for camping, glamping, and RV stays on private land.  Like Airbnb in booking, Hipcamp has a platform that is also free to post your property on and “hipcampers” can search by area, tent site, beach camping, RV spots or parks or glamping.  You do have to either provide a toilet or make sure your hipcamper brings their own.  Also, like Airbnb there is peace of mind with their Hipcamp Insurance Policy that protects hosts for up to $1 million for general liabilities claims per occurrence. 

Furnished Finder was established in 2014 and is a short-term housing for traveling nurses and other business travelers who need furnished housing for typically 3-4 months at a time.  It works a little differently in that the nurse/businessperson submits a housing request so property owners can reach out if they have a property that is a fit.  Once you list your property, you’re automatically entered in the network and will begin receiving housing requests that match your listing. 

For these short-term rentals all utilities should be included, bedding and linens, kitchenware, bath ware, and essential housewares, wifi is practically a requirement and access to laundry facilities is a bonus. 

-Rachel