Frequently Asked Questions

This page is designed to assist in determining if home ownership is right for you by providing answers to some very important questions about the home buying process.

Question: How do I get started?
The first thing you need to do is determine what you're in the market for. Participating lenders can answer questions about what loan programs they have available and which one is right for you. It is also important to sign up with the Portland Housing Center or another educational program. They offer home buying classes, counseling & financial programs to help you become more educated and prepared for homeownership.

Question: What if I've had a bankruptcy or bad credit?
Many people assume that a bankruptcy automatically disqualifies you from owning a home. That's simply not true. What type of bankruptcy or how long it's been discharged will determine when you may be eligible to obtain a mortgage loan, but it does not put you out of the market. Contact one of our preferred lenders who are able to assist you with your specific situation. As for bad credit, it is important that you can show any lender that you're credit worthy, and if you have some issues, the Portland Housing Center is the best place to start. Their financial counselors are able to help you design a plan to get your credit back in shape to get you mortgage ready. They are able to assist you for as long as you need and as long as you're committed to stay on track.

Question: What if I don't have much money for a down payment and closing costs?
The amount you would pay for a rental deposit along with first and last month's rent may get you into a home. Many of our preferred lenders have programs that require as little as 1% of your own funds. You may also qualify for the closing cost assistance of up to $5,000 from HOST. The Portland Housing Center also has a few loan programs towards down payment that may work for you as well. Many assistance programs do have income limitations so contact one of our preferred lenders to determine which one will work for you.

Question: What does it mean to be pre-qualified and pre-approved?
A pre-qualification is an estimate given by a lender of the amount you may qualify for based on the information you provide them such as your annual income and any debts you may have. A pre-approval is the process by which the lender evaluates your financial status and determines what you may be eligible to borrow.

Question: What is PITI?
Once you begin shopping for a mortgage you will see the letters PITI. This refers to the principal, interest, taxes & insurance, which make up your monthly mortgage payment. Based on the sales price of the home you are purchasing or would like to purchase, our preferred lenders are able to give you a good faith estimate sheet to give you an idea of what your mortgage payment may look like.