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Buying a home can seem like a distant dream for many Oregonians. Saving for a down payment can be a significant hurdle, especially in today's housing market. However, the Oregon Housing and Community Services (OHCS) Flex Lending Program can help bridge that gap and make homeownership a reality. What is the Flex Lending Program? OHCS established the Flex Lending Program to assist Oregonians with limited down payment resources. It offers a second mortgage loan that acts as down payment assistance. This reduces the amount you need to come up with upfront, making qualifying for a traditional first mortgage easier. Benefits of the Flex Lending Program Reduced Down Payment: The program provides up to 4% of the first mortgage as a down payment assistance loan. Broader Access to Mortgages: The Flex program lowers the down payment requirement, allowing more Oregonians to qualify for conventional mortgages. Safe and Secure Mortgages: The program facilitates access to safe and affordable mortgage products. Who is Eligible? OHCS determines eligibility for the Flex Lending Program based on specific criteria outlined in its program guidelines. The program generally targets first-time homebuyers and low-to-moderate income earners. Finding More Information For more information about the Flex Lending Program, you can explore these resources: Oregon Housing and Community Services website: Contact OHCS for eligibility requirements and application procedures. Oregon Administrative Rules: This resource provides a legal framework for the program outlining its purpose and eligibility criteria [Division 22 - FLEX LENDING PROGRAM (FLEX)]. Owning a home can be a pathway to a secure and stable future. The Flex Lending Program can be a stepping stone for many Oregonians on their journey to homeownership. Additional Tips Working with a real estate agent or mortgage lender familiar with the program can be a valuable resource for navigating the application process. Review the rules here. Peruse the State of Oregon Flex Lending website here. [Photo Credit: by RDNE Stock project]

The house hunt is an exciting time, but navigating the world of mortgages can be confusing. Two terms that often trip up buyers are prequalification and preapproval. While they may sound similar, their differences hold significant weight in home-buying. Let's break down the key differences between a prequalification letter and a preapproval letter for a home mortgage. Prequalification: A Starting Point Think of a prequalification letter as an estimate. Based on the information you provide about your income, debts, and employment, a lender can give you a ballpark idea of how much you can borrow. Fast and Easy: Prequalification often involves a quick online form or conversation with a lender. Unverified Information: The lender relies on the information you give them without verifying it with documents. Limited Weight: A prequalification letter holds little weight with sellers. It doesn't guarantee approval for a loan. Preapproval: Getting Serious A pre-approval letter is a stronger signal to both you and the seller. It involves a more thorough review of your financial health: Deeper Dive: The lender verifies your income with pay stubs and tax returns, checks your credit report, and examines your assets and liabilities. Conditional Commitment: Once verified, the lender issues a pre-approval letter stating the maximum loan amount you're likely eligible for, subject to some conditions. Stronger Position: A preapproval letter shows sellers you're a serious buyer with the financial backing to secure a mortgage. Remember Use prequalification for initial budgeting and getting comfortable with the mortgage process. Get pre-approved before seriously house hunting. This strengthens your offer and gives you peace of mind. Shop around for lenders and compare rates before getting preapproved. The information in your preapproval letter is only valid for a specific timeframe, typically 30-60 days. Prequalification can be a helpful initial step to understanding your affordability range. However, a preapproval letter is the gold standard when making offers and competing with other buyers. With a clear understanding of prequalification and preapproval, you can confidently navigate the mortgage process and land your dream home! END (C) 2024 Jeff Sorg

With proper etiquette, business cards are a small networking tool that can leave a big impression. Here's a quick rundown on proper business card etiquette: Giving your card: Be prepared: Always carry extras and have them easily accessible. A frantic search for a card is unprofessional. Presentation matters: Offer your card with the contact information facing the recipient, using one or two hands, depending on the formality of the situation. In the US, one hand is usually sufficient. Make eye contact and smile: Briefly introduce yourself and your title as you hand over the card. Receiving a card: Mirror their action: If the person uses two hands, accept it with two hands. Show respect: Take a moment to read the card and make a positive comment about their business or title. Store it safely: Don't just shove it in your pocket or purse. Have a business card case to show respect for the information. General tips: Keep your cards up-to-date: Outdated information reflects poorly on you. Don't write on someone else's card: Unless they ask you to make a note. Don't force your card: If the conversation isn't going anywhere, it's okay to skip the exchange. Follow up: Especially if you had a good conversation, send a quick email thanking them for their time and mentioning something you discussed. By following these simple tips, you can ensure a professional and positive exchange of business cards, promote your network, and make a lasting impression. END (C) 2024 Jeff Sorg

Are you thinking of selling your house in Oregon? Smoke detector compliance is a crucial step to ensure a smooth transaction. Here's what you need to know: It's the Law: Oregon law mandates functional smoke detectors in every dwelling unit sold. No sale can be finalized without them [ORS 479.260]. Location Matters: At least one operational smoke detector must be installed on each floor, including the basement (excluding crawl spaces and unfinished attics). Ideally, they should be placed outside bedrooms for optimal coverage [OAR 837-045-0050]. Functionality is Key: Ensure your detectors have working batteries and no malfunctions. A chirping or silent alarm signifies a potential problem [ORS 479.260]. Approved Models Only: Not all smoke detectors are created equal. Consult a professional if you're unsure if yours meets the State Fire Marshal's approval [ORS 479.295]. Consider Interconnected Systems: While not mandatory, interconnected alarms offer an extra layer of safety. When one sounds, all activate, providing a louder and more comprehensive warning throughout the house. Following these regulations protects potential buyers and demonstrates your commitment to their safety. For detailed information on placement and approved models, consult the Oregon State Fire Marshal's office or a licensed home inspector. Special Note: Information, including statutes and administrative rulings, was deemed accurate at the time of posting. Oregon rules and laws change frequently, and local ordinances may be more restrictive. The reader should perform their own investigation regarding safety matters. END (C) 2024 Jeff Sorg

In Oregon, carbon monoxide (CO) alarms must be installed in dwellings before they are sold, but only if the dwelling contains a carbon monoxide source. Here's a breakdown of the key points: CO Alarms Required, But Not Always: Not every home needs a CO alarm before being sold. The requirement only applies to dwellings containing a source of carbon monoxide. Common CO Sources:  Examples of CO sources in a home include: Fuel-burning appliances like furnaces, water heaters, and fireplaces. Gas ranges and ovens. Attached garages Alarm Placement:  If a CO alarm is required, it must be installed in accordance with the manufacturer's instructions and specific state regulations. Generally, this means: Placing alarms within each bedroom or within 15 feet outside of each bedroom door. Installing an alarm in any enclosed common area connected by a door, ductwork, or ventilation shaft to a CO source. Resources: Oregon Seller's Property Disclosure Form typically includes a section addressing CO alarm compliance. Oregon Division of Building Codes: https://www.oregon.gov/bcd/pages/index.aspx Tualatin Valley Fire & Rescue - Requirements When Selling or Renting: https://www.tvfr.com/416/Carbon-Monoxide-Alarms By understanding these regulations, sellers in Oregon can ensure their properties comply with CO alarm requirements before transferring ownership. END (C) 2024 Jeff Sorg

Zillow® report says inventory is accumulating, rising 22% over last year and reducing the pandemic-era deficit in the real estate market. According to the most recent Zillow® market report by senior economist Orphe Divounguy, more sellers are returning to the housing market while buyers are cautious. This decreases buyer competition and price growth, which is expected to result in further price moderation in the upcoming year. Divounguy explains that the influence of historically low mortgage rates appears to be diminishing. Homeowners hesitant to sell are now more inclined to list their properties. Nevertheless, with a growing number of options for buyers, their sense of urgency appears to be diminishing. Inventory Levels Rise The report emphasizes a notable surge in new listings, with an 8% rise from April to May surpassing sales. There has been a 13% increase in available homes compared to the previous year, which is encouraging for potential buyers. According to Zillow's survey of recent sellers, life events like marriage or starting a family were the main reasons for selling rather than aiming to take advantage of market conditions [1]. Buyers Not Matching Seller Enthusiasm Even with more listings coming in, there is still low buyer activity. Sales decreased by 6% in May compared to the previous year. This decrease has led to an increase in housing market inventory, now 22% higher than the extremely low levels of 2023. Although inventory is still 34% below pre-pandemic levels, it is the most minor shortfall in over three years. Market Variations The report highlights these regional differences: The West Coast and coastal South, which include cities like San Diego, Seattle, Charlotte, Raleigh, and the San Francisco Bay Area, experienced the most significant year-over-year increase in new listings. Major Florida markets, driven by strong new construction, saw the most significant year-over-year growth in total inventory. With the exception of Miami, buyers in all primary markets found a wider range of listings compared to the previous month. Cooling Competition and Appreciation In May, there was a decrease in buyer competition, as highlighted in the report. This resulted in a slowdown in the appreciation of home prices. The year-over-year growth rate for average home values decreased from 4.4% in April to 3.9% in May, which is still considered a solid pace. Monthly appreciation dropped from 1.2% in April to 0.8% in May. Since the onset of the pandemic, home values have increased substantially, with a total appreciation exceeding 45%. Price Trends Prices dropped in specific markets, such as New Orleans, Austin, and San Antonio, compared to the previous year. The Northeast and coastal California continue to show the highest appreciation rates. Forecast for Down Payment Relief Renters who are struggling to save for a down payment on a home may soon find some relief. According to Zillow's forecast, a modest uptick of 0.4% in home values is expected in the real estate market for the upcoming year, 2024. This slight increase could offer renters a window of opportunity to transition from renting to owning a property. The forecast also suggests a subsequent decrease of 1.4% in home values by May 2025. This fluctuation in housing market dynamics could present prospective homebuyers with challenges and opportunities. As such, renters who aspire to become homeowners may need to carefully navigate these predicted changes to make informed decisions about their home-buying journey. Source: [1] The Zillow® Real Estate Market Report is a monthly national and local real estate market overview. Zillow Research compiles the reports. [2] Tracked by Zillow's Sales Count NowCast. ZILLOW is a trademark of Zillow, Inc. END (C) 2024 Jeff Sorg

It is generally not recommended for a residential real estate agent to take on a commercial property listing or buyer. Different Expertise Residential agents are experts in local schools, walking and home energy scores, emotional connections to homes, and navigating single-family property features. On the other hand, commercial agents focus on income potential, zoning and use restrictions, and complex lease agreements. Financial Analysis Commercial properties are valued based on income generation, requiring a solid understanding of financial metrics like capitalization rates and net operating income. Residential agents might not, and usually don’t, have this background to the degree necessary to properly and effectively represent a commercial buyer or seller. List and Offer Price Standard methods for finding commercial property value include cost, sales, income, gross rent multiplier, discounted cash flow, and the price per square foot approach. Commercial brokers can access this information to discuss value with the client, while the residential agent would find it difficult. Marketing Strategies Marketing a house differs from marketing a retail space or an office building. Commercial agents understand how to target businesses and highlight factors like foot traffic and demographics. Residential agents, while great at marketing residential properties, usually don’t know where to begin with marketing a commercial property; commercial property is about more than the MLS and an informational flyer. Legal Complexities Commercial sale agreements can be intricate documents with clauses about environmental concerns, current tenants and their lease agreements, and other complex legal clauses. Residential agents may need to be more familiar with these nuances, which can lead to trouble for the client and the agent. Finding the Right Buyer Commercial properties have a smaller pool of potential buyers, and commercial agents often have established networks within specific industries that a residential agent cannot provide. Client Needs Commercial clients have different expectations than those that the residential agent can meet. They need an agent who can navigate complex negotiations, understand market fluctuations, and advise on long-term investment strategies. Although residential real estate agents possess the skills required to sell residential real estate and the necessary license to sell all types of real estate, they generally need to gain the specialized knowledge and experience needed to represent buyers or sellers of specialty properties and achieve optimal outcomes for the client. Real estate agents are obligated to direct clients who require a specialized skill they don’t possess to an agent who has that skill. Referring clients to commercial agents is highly encouraged, as most are open to referrals from residential brokers. Such referrals benefit everyone involved in the transaction, especially the client. END (c) 2024 Jeff Sorg X

Washington, D.C., April 5, 2024 – The Consumer Financial Protection Bureau (CFPB) issued a new report today finding that more borrowers paid “discount points” upfront as overall interest rates rose. The percentage of homebuyers paying discount points roughly doubled from 2021 to 2023. The increase was even greater among borrowers with lower credit scores. While discount points may provide advantages to some borrowers, the financial tradeoffs are complex. The CFPB is monitoring these increases and potential risks to consumers. “Higher interest rates on mortgages have led borrowers to pay upfront fees to lower their interest payments,” said CFPB Director Rohit Chopra. “The heavy use of ‘discount points’ suggests that many borrowers are uncertain about their ability to refinance in the future.” Discount points are a one-time fee paid at closing to a lender in exchange for a lower interest rate. Paying one discount point is the equivalent of paying a fee of one percent of the loan amount, but discount points have no fixed value in terms of the change in interest rate. Most borrowers only benefit from discount points if they keep their mortgage long enough that the cumulative monthly savings from the reduced interest rate outweigh the upfront costs. The report published today used quarterly Home Mortgage Disclosure Act (HMDA) data from 2019 through the first three quarters of 2023. The report found that borrowers with lower credit scores were more likely to pay discount points, and that discount points were especially prevalent among Federal Housing Administration (FHA) borrowers with low credit scores. This indicates that lenders may be using discount points to lower borrowers’ monthly payments and debt-to-income ratio, which is one of the measurements lenders use to assess a borrower’s ability to repay in order to qualify for a mortgage. Nearly 77 percent of FHA borrowers with credit scores below 640 purchased discount points, while 65 percent of all FHA borrowers paid discount points. Discount points were most common among borrowers with cash-out refinances, with 87 percent of those borrowers in September 2023 paying discount points, up from 61 percent in January 2021. Nearly 61 percent of borrowers with home purchase loans and 58 percent of borrowers with non-cash-out refinance loans also paid discount points in September 2023, up from 31 and 36 percent in 2021, respectively. Borrowers with cash-out refinances also paid a greater number of discount points. The median amount of discount points in the 2023 quarterly data was 2.1 points for cash-out refinance loans, 1.1 points for non-cash-out refinances, and 1.0 point for home purchase loans. HMDA data are the most comprehensive source of publicly available information on the U.S. mortgage market. In addition to submitting annual application-level data, the largest mortgage lenders must submit quarterly HMDA data to their regulators. Aggregate statistics from the quarterly data are publicly available in the HMDA quarterly graphs. END Source: CFPB press release X

Oregon law requires well water testing for properties with domestic wells undergoing a sale or exchange. This crucial regulation, outlined in the Oregon Revised Statute (ORS) 448.271, protects buyers and sellers by ensuring transparency about water quality. Let's dive into the specifics of this law and how it impacts your real estate transaction. ORS 448.271: "Transfer of property that includes well; testing; effect. (1) In any transaction for the sale or exchange of real estate that includes a well that supplies ground water for domestic purposes, the seller of the real estate shall, upon accepting an offer to purchase that real estate, have the well tested for arsenic, nitrates and total coliform bacteria. The Oregon Health Authority also may, by rule, require additional tests for specific contaminants in specific areas of public health concern. The seller shall submit the results of the tests required under this section to the authority and to the buyer within 90 days of receiving the results of the tests. (2) The failure of a seller to comply with the provisions of this section does not invalidate an instrument of conveyance executed in the transaction. [1989 c.833 §30; 2009 c.284 §1; 2009 c.595 §855]" The Seller's Responsibility ORS 448.271 makes the seller responsible for testing the domestic well water upon accepting an offer to purchase the property.  This test must analyze the water for three key contaminants: Arsenic: A naturally occurring element that can cause serious health problems at high levels. Nitrate: Primarily a concern in agricultural areas, high nitrate levels can pose health risks, especially for infants. Total Coliform Bacteria: Indicates potential contamination from sewage or other harmful microbes. The Oregon Health Authority (OHA) may require additional testing for specific contaminants in designated areas of public health concern. Sharing the Results Following the testing, the seller must submit the results within 90 days of receiving them to two parties: The Oregon Health Authority (OHA): This ensures the state has a record of the water quality of the property. The Buyer:  Transparency about water quality empowers the buyer to make informed decisions about the property. Exemptions to Well Water Testing It's important to note that ORS 448.271 applies only to wells used for domestic purposes, such as drinking, cooking, and bathing.  Here are some scenarios exempt from well water testing: Capped Wells on Undeveloped Lots:  Testing is not required if the well is not operational and the property is not developed. Spring Fed Wells: Properties with natural springs used for domestic water are not subject to testing under this law. Irrigation Wells:  Wells solely used for irrigation are exempt from testing. Peace of Mind Through Responsible Testing ORS 448.271 safeguards buyers and sellers in real estate transactions involving domestic wells.  Following this regulation allows all parties to navigate real estate transactions with greater peace of mind. For sellers, it ensures transparency and protects them from potential future liabilities. For buyers, it empowers them to make informed decisions about the property's water quality and potential health implications. For More Information Oregon Health Authority, Domestic Well Testing Oregon State University, well water safety END (C) 2024 Jeff Sorg X