Deferred Loans

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Deferred Interest Bearing Loan (DIBL) Program

What is the purpose of the Deferred Loan Program?

To assist low income owner occupants in making needed repairs to single family dwellings that do not meet accepted standards or which have one or more major systems in need of repair because of failure or near failure.

A Quick Look:  How do I qualify for a deferred interest-bearing loan?

  1. You must be a Washington County resident (but not reside within Beaverton city limits)
  2. Your assets must be below $30,000 (exluding your home, its furnishing & fixtures and one vehicle)
  3. Your income must be within the current income guidelines
  4. Your income taxes must be current if a homeowner
  5. You must maintain a fire insurance policy
  6. You must permanently reside in the dwelling to be rehabbed
  7. You must have enough equity in your home to cover the loan 

What type of loan assistance is available?

  • The single family dwelling rehabilitation loans are deferred payment, simple interest bearing loans which are due and payable when the property is sold or is no longer occupied by the persons who received the loan. 
  • The established simple interest rate will be 3%. Interest will be applied to the loan principal for TEN years or until the loan is repaid, whichever occurs first.  
  • The maximum loan amount is $25,000. The minimum loan amount is $2,000.
  • Loans may be made more than once but the total of all loans, to any one owner shall not exceed $25,000.
  • No loan will be made that will cause the total debt on the property to exceed 100% of the after rehab value.  Applicants shall have a minimum of 10% equity in the property at the time of application.  
  • The loans are secured by a Promissory Note and Trust Deed.

What are eligibility criteria? 

Applicant:                

  • The applicant must reside in and own, or be buying the dwelling.  The applicant must continue to own and occupy the home for the duration of the loan.                 
  • The household must have a gross annual income of less than 80% of Annual Median Income of the Portland PMSA, based on family size and as certified annually by the Department of Housing and Urban Development.  
  • The applicant must have either a "fee simple title" or a "purchaser's interest in a land sales contract.”    
  • The applicant's current assets plus fixed assets (excluding one vehicle, the subject property, its furnishings and fixtures) must be less than $30,000.  Dedicated retirement accounts with a balance up to $100,000 and that has withdrawal penalties, are excluded from this asset limitation.

Structure:

  • The structure must contain no more than one dwelling unit.     
  • The structure must not be a mobile home.    
  • The property taxes must be paid at time of application and a fire insurance policy must be in effect at the time of application. The applicant/owner must pay all property taxes on time and have continuous fire insurance in effect at all times.

What are examples of housing conditions that qualify for loan repairs?

  • Deteriorated foundations
  • Defective framing
  • Deteriorated roofs, windows, doors
  • Failed electrical system
  • Lack of bathroom facilities or components
  • Failed heating source – furnace, wood stove
  • Lack of insulation or other weatherization
  • Air conditioning is not eligible unless medically necessary
  • Improper drainage contributing to moisture problems or mold
  • Security locks and lighting
  • Fire warning systems
  • Accessibility improvements