(2) An applicant may not borrow more than the maximum amount allowed for a loan under this section.

(3) The maximum amount allowed for a loan made under this section may not exceed the least of:

(a) The maximum original principal balance permitted on a single-family first mortgage loan published by the Federal Housing Finance Agency, at a rate of interest provided by ORS 407.325;

(b) The maximum loan-to-value ratio or combined loan-to-value ratio permitted by the United States Department of Veterans Affairs for its Home Loan Guaranty Program (38 U.S.C. 3701 et seq.; 38 C.F.R. part 36); or

(c) If the property to be acquired with the funds from the loan is a farm, 90 percent of the net appraised real property value.

(4) When calculating the maximum amount allowed for a loan under this section, the Department of Veterans’ Affairs shall exclude:

(a) Funds disbursed under ORS 407.145 (2) and 407.275 (4); and

(b) The amount of a loan that has been repaid, or for which the property securing the loan has transferred by deed or otherwise, if the property:

(A) Is destroyed by fire or other natural hazard; or

(B) Is taken through condemnation or lost or disposed of for a compelling reason devoid of fault on the part of the applicant.

(5) An eligible person may not receive or, under ORS 407.305, assume more than four loans under this chapter.

(6) For the purposes of this section, an applicant owns a home when the applicant has fee simple title to the home or is the purchaser of the home under a contract of sale or other instrument of sale. Earnest money or preliminary sales agreements, options or rights of first refusal are not contracts or instruments of sale under this subsection. [Formerly 407.040; 1989 c.677 §5; 1991 c.67 §97; 1993 c.192 §1; 1997 c.36 §1; 1999 c.41 §1; 2005 c.625 §30; 2007 c.43 §1; 2013 c.227 §1; 2014 c.30 §1; 2019 c.223 §10]