ODVA

The ODVA Home loan is a conventional mortgage offered by the Oregon Department of Veterans Affairs exclusively to Oregon veterans. The ODVA funds the program through the issuance of tax-free, state obligation bonds called Qualified veterans Mortgage Bonds (or QVMB) which allows the department to offer subsidized rates that are often lower than federal VA rates.  The program does require a 5% down payment and does require mortgage insurance (unlike the traditional VA loan) but does not require a funding fee.

The ODVA services the loan for the life of the loan! This is a benefit for the borrower in two big ways. First, the borrower will have a local Oregon contact as it is serviced through their office in Salem, Oregon, unlike federal VA mortgages which are often sold to different services through the life of the loan. The second big benefit is that because the ODVA funds and services the loan, they are able to offer more flexibility with their underwriting. The ODVA follows the Fannie Mae guidelines but is able to make adjustments and exceptions that are not possible with the federal VA or conventional loans making it possible for veterans to get a loan that might not otherwise be possible.