Bill > HB3188

This bill establishes a loan loss reserve program to help first-time home buyers in Oregon obtain mortgages with more favorable terms. The Housing and Community Services Department will create a program that guarantees up to 5% of a home's purchase price against potential lender losses. To qualify, mortgage loans must have 100% financing without a down payment, a fixed 30-year interest rate, and meet specific underwriting requirements. First-time home buyers must have an income at or below 120% of the county's qualifying income and complete a home buyer education class. Lenders can claim losses if they foreclose on the property within five years and cannot recover the full outstanding loan amount through property sale. A new Welcome Home Assistance Program Fund will be established to support the program, with an initial appropriation of $2,500,000 from the General Fund. The bill includes provisions for how lenders can document losses, how the department will manage claims, and includes an emergency clause to make the law effective immediately upon passage. The goal is to make homeownership more accessible to first-time buyers by reducing financial barriers and risks for both buyers and lenders.

Budget and Finance, Business and Industry, Housing and Urban Affairs

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB3188