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The Oregon Administrative Rules contain OARs filed through June 15, 2014
 
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DEPARTMENT OF VETERANS' AFFAIRS

 

DIVISION 28

VETERANS' HOME IMPROVEMENT LOAN PROGRAM

 

274-028-0001

Purpose and Objectives

(1) This division is established to administer the provisions of ORS 407.145 and 407.225. These rules, together with the Processing Manual, shall implement the Veterans' Home Improvement Loan Program.

(2) The program's objective is to provide funds to finance qualified improvements of owner occupied, residential housing for qualified veterans in the State of Oregon. Where context allows, the provisions of OAR chapter 274, divisions 020, 021, 022 and 025 apply equally to the Veterans' Home Improvement Loan Program loans for which applications are received on or after November 12, 1997. No improvement will be financed that is inconsistent with the provisions of ORS chapter 407, ODVA's Processing Manual, section 143 of the Internal Revenue Code of 1986 and any subsequent changes as they are effected. Copies of section 143 of the Internal Revenue Code of 1986 and the Processing Manual are on file with the Oregon Department of Veterans' Affairs, 700 Summer Street NE, Salem Oregon, and available to the public Monday through Friday between the hours of 8 a.m. and 5 p.m.

Stat. Auth.: ORS 406.030, 407.115, 407.125, 407.145, 407.225
Stats. Implemented: ORS 407.115, 407.125, 407.145, 407.225
Hist.: DVA 6-1997, f. & cert. ef. 10-22-97; DVA 3-2007, f. & cert. ef. 9-25-07

274-028-0005

Definitions

Selected words and terms as used in OAR chapter 274, division 028, are defined as follows:

(1) Veterans' Home Improvement loan means a loan or loans issued pursuant to OAR 274-028-0001 for not more than the total loan right where said loan funds are used to improve the basic livability of the home as defined in OAR 274-025-0010(7).

(2) Qualified improvements means the remodel or improvement of an existing home which will substantially enhance or protect the basic livability of the home.

(3) Processing Manual means the manual containing the policy for the Veterans' Home Improvement Loan Program, and any subsequent changes as they are effected.

(4) Veterans' Home Improvement Loan Program means all veterans' home improvement loans for which applications are received on or after November 12, 1997.

(5) Existing loan means any loan or loans obtained by the veteran to purchase or improve the property used as security for a loan with the Oregon Department of Veterans Affairs (ODVA).

(6) Loan to Value Ratio is the loan amount plus any outstanding balance owed to ODVA on the security divided by the net appraised value.

Stat. Auth.: Ch. 214 OL 1997 & ORS 406.030
Stats. Implemented: Ch. 214 OL 1997 & ORS 406.030
Hist.: DVA 6-1997, f. & cert. ef. 10-22-97; DVA 2-2005, f. & cert. ef. 4-22-05

274-028-0010

Interest Rate

(1) The Director may prescribe interest rate(s) on veterans' home improvement loans in a manner consistent with OAR 274-020-0341. The prescribed interest rates shall be "fixed interest rates" consistent with the usage of that term in ORS chapter 407.

(2) The Director will publish prescribed interest rates in the Department's Tables and Codes Manual. This publication will be available for viewing at the Oregon Department of Veterans' Affairs, 700 Summer Street NE, Salem, Oregon, as permitted by the Department, during regular business hours.

Stat. Auth.: Ch. 214 OL 1997 & ORS 407.327

Stats. Implemented: Ch. 214 OL 1997 & ORS 407.327

Hist.: DVA 6-1997, f. & cert. ef. 10-22-97; DVA 3-2005, f. & cert. ef. 4-22-05

274-028-0015

Approval of Veterans' Home Improvement Loans

Veterans' home improvement loans will be processed using current industry standards determined by the Department to be applicable to the proposed loan as they relate to the borrower's ability and willingness to repay and the borrower having required funds for closing. Applicable industry standards may include, but are not limited to, local lending practices, FannieMae and other lending organization standards, and federal and state legal requirements.

Stat. Auth.: ORS 407.115 & 407.265
Stats. Implemented: ORS 407.115, 407.145, 407.225, 407.265 & 407.325
Hist.: DVA 6-1997, f. & cert. ef. 10-22-97; DVA 6-2005, f. & cert. ef. 10-24-05

274-028-0020

Terms of Veterans' Home Improvement Loans

(1) The veterans' home improvement loan must be placed in the first lien position on the security or be an immediate subsequent lien to an existing ODVA lien. The first ODVA lien and any immediate subsequent lien made on the security by the director shall be deemed collectively as a first lien on the security.

(2) The net appraised value will be used as the basis for determining the maximum veterans' home improvement loan subject to statutory limitations.

(3) When a veterans' home improvement loan is made on a security with an existing balance owed to the director, the total of the unpaid balance of the existing loan and the veterans' home improvement loan shall not exceed 80 percent of the net appraised value as determined by the director.

(4) When a veterans' home improvement loan is made on a property where no balance is owing, the veterans' home improvement loan shall not exceed 97 percent of the net appraised value as determined by the director. If the loan-to-value ratio is greater than 80 percent of the net appraised value, the loan must be insured by mortgage insurance consistent with ORS 407.485.

(5) All existing nonamortizing ODVA loans on the security must be reamortized to bring the principal and interest payment and final payment date into conformance with ODVA policy as identified in the Processing Manual. A copy of the manual is on file with the Oregon Department of Veterans' Affairs, 700 Summer Street NE, Salem Oregon, and available to the public Monday through Friday between the hours of 8 a.m. and 5 p.m. All other terms of the existing loan on the security remain unchanged.

(6) Depending upon the loan amount, the maximum term of a home improvement loan may not exceed 20 years.

Stat. Auth.: Ch. 214 OL 1997, ORS 407.205, ORS 407.275 & ORS 407.485
Stats. Implemented: Ch. 214 OL 1997, ORS 407.205, 407.275 & ORS 407.485
Hist.: DVA 6-1997, f. & cert. ef. 10-22-97; DVA 3-2003(Temp), f. & cert. ef. 4-7-03 thru 10-3-03; DVA 11-2003, f. & cert. ef. 9-23-03

274-028-0025

Appraisal of Property

An appraisal may be made at the discretion of the director to assist in establishing the net appraised value. A fee will be charged in accordance with OAR 274-020-0440.

Stat. Auth.: ORS 406.030 & ORS 407.115
Stats. Implemented: ORS 406.030 & ORS 407.115
Hist.: DVA 6-1997, f. & cert. ef. 10-22-97

274-028-0030

Transfer of Ownership

(1) The director may declare all veterans' home improvement loan sums to be immediately due and payable if all or part of the security is sold or otherwise transferred by the borrower to anyone other than those qualified persons identified in ORS 407.275.

(2) The director shall be notified in writing by the borrower of any transfer of ownership or right to possess the security, including to those qualified persons identified in ORS 407.275, that is used as security for a home improvement loan with ODVA.

(3) The provisions of OAR 274-020-0380(2), (3), (4) and (5) apply to any transfer on a veterans' home improvement loan.

Stat. Auth.: Ch. 214 OL 1997, ORS 406.030, ORS 407.115, ORS 407.275, ORS 407.305 & ORS ORS 407.335
Stats. Implemented: Ch. 214 OL 1997 & ORS 407.275
Hist.: DVA 6-1997, f. & cert. ef. 10-22-97

274-028-0035

Taxes, Hazard Insurance and Flood Insurance

(1) For veterans' home improvement loans which are subsequent to an existing loan, the director may pay property taxes or hazard or flood insurance on the existing loan until the existing loan is paid in full, after which it will be the borrower's responsibility to pay these items directly.

(2) If delinquent taxes become a lien against the security, or the borrower fails to maintain the required insurance, the director may pay the taxes or insurance and if so paid, will collect the amount paid by ODVA from the borrower through an escrow account per the provisions of OAR 274-020-0388.

Stat. Auth.: Ch. 214 OL 1997, 407.115, ORS 407.165 - 407.181 & 407.275
Stats. Implemented: Ch. 214 OL 1997, ORS 407.165 - 407.181 & 407.275
Hist.: DVA 6-1997, f. & cert. ef. 10-22-97; DVA 2-2005, f. & cert. ef. 4-22-05

274-028-0040

Title Insurance

Each loan shall be covered by a title insurance policy as designated by the director at the borrower's expense.

Stat. Auth.: ORS 407.115, ORS 407.177, ORS 407.179 & ORS 407.181
Stats. Implemented: ORS 407.115, ORS 407.177, ORS 407.179 & ORS 407.181
Hist.: DVA 6-1997, f. & cert. ef. 10-22-97

The official copy of an Oregon Administrative Rule is contained in the Administrative Order filed at the Archives Division, 800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the published version are satisfied in favor of the Administrative Order. The Oregon Administrative Rules and the Oregon Bulletin are copyrighted by the Oregon Secretary of State. Terms and Conditions of Use

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