Clackamas first time home buyer assistance loan program


The CHAP Program can lend up to $14,000 to help qualified first-time home-buyers pay for down payment and reasonable closing costs. A CHAP loan is a zero-percent interest deferred-payment loan. Following is more information about how to qualify and apply:

The Buyer must get pre-qualified for primary financing by an Oregon-licensed lender.
The Lender must contact Community Development for a current CHAP application packet.
The Buyer will shop for an eligible property and find an affordable house that is in move in ready condition.
(Use this guide to help you learn how to look for problem areas in a house)
Buyer must submit an accepted offer with required CHAP attachments
For houses built before 1978, a lead disclosure statement.
The Buyer must order and pay for whole house and pest & rot inspection.

The Lender submits a complete application packet to Clackamas County Community Development. The packet must include:
The home inspection report
The pest and dry rot report
A completed CHAP inspection form.

Your loan will take at least 30 days to close from date loan package is submitted to Clackamas County Development

Who is eligible to apply?

  •  “First-time homebuyers”. HUD defines a first-time homebuyer as someone who:
    • has not owned a home during the past 3 years, or
    • is a displaced homemaker, or
    • is a single parent.
  • Be low-income — see chart below.
  • Demonstrate a financial need for CHAP assistance.
  • Be a US citizen, non-citizen national or a qualified alien.

To be a “Qualified Borrower“, the homebuyer must:

  • Have sufficient income to qualify for and support the primary debt.
  • Be pre-qualified by a primary lender.  (Contract sales are not allowed.)
  • Have good credit.
  • Contribute a minimum of $1,000 in cash toward the purchase from the buyer’s own funds. (Does not include items that the buyer paid out-of-pocket, e.g. inspection and appraisal.) Buyers should have at least $2500 cash on hand before beginning a home search to cover earnest money deposit PLUS home inspections and appraisal).

HUD Income Limits for 2014
(Gross Annual)

Number in Household 80% of Median
1 $38,850
2 44,400
3 49,950
4 55,500
5 59,950
6 64,400
7 68,850
8 73,300

To be an “Eligible Property“, the house must:

  • Be located in Clackamas County
  • Have a purchase price at or below:
    • $228,000, and
    • the appraised value
  • Meet the definition of affordable, standard single family housing (a single unit)
  • Meet property standards and pass an inspection by the County
  • Be free of chipped or peeling paint if the house was built before 1978
  • Not be occupied by a tenant (unless the buyer is the tenant)

The CHAP program is funded by a grant from the federal Department of Housing and Urban Development (HUD). The program is subject to funding availability. Homes purchased through the CHAP program must be the primary residence of the homebuyer. Other program requirements apply.

Please like & share: