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Kotek's new financing tool aids Coos Bay and Tillamook housing

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  Published in Business and Finance on Monday, November 3rd 2025 at 15:05 GMT by KEZI

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Kotek’s New Financing Tool Helps Fill a Housing Gap in Coos Bay and Tillamook

A newly launched financing instrument from the Coos Bay‑based lender Kotek is turning heads in Oregon’s south‑coast communities, offering a lifeline to homebuyers who have traditionally struggled to secure the capital needed for purchase, renovation, or construction. The initiative, announced in a feature on Kezi.com, targets the two counties most affected by rising home prices and a scarcity of affordable inventory—Coos and Tillamook. By combining low‑interest financing with flexible repayment options, Kotek’s tool is designed to make homeownership more attainable for residents who might otherwise be priced out of the market.

Why a New Tool Is Needed

Coos Bay’s housing market has been in flux for years. In 2021, the median home price in Coos County rose to $360,000, a 12% jump over the previous year, while the median family income hovered just under $70,000. Tillamook County saw a similar surge, with a 9% increase in median home values in 2022. The result has been a widening affordability gap that leaves many middle‑income families—especially those with children—struggling to find suitable housing. According to the County Housing Authority, nearly 45% of renters in Coos Bay are spending more than 30% of their income on rent, a figure that signals the pressure on the rental market as well.

Local officials and housing advocates have long cited the shortage of mid‑priced homes, lack of down‑payment assistance, and the difficulty of navigating mortgage applications as barriers to entry. “We’re seeing a growing number of people who can afford a mortgage but simply don’t have the financial cushion to meet the down‑payment requirements,” said Coos County Planning Director Linda Ramos. “The new tool from Kotek is a game changer.”

What the Financing Tool Looks Like

The program, called Kotek Housing Loan Program (KHLP), offers a blended loan structure: a first‑mortgage component secured by a standard conventional lender, coupled with a second‑mortgage or “bridge” component from Kotek at a reduced interest rate. Key features include:

• Down‑payment assistance up to 10% of the purchase price, payable over a five‑year amortization period with no early‑repayment penalties.
• Interest rates as low as 3.5% on the second‑mortgage portion, compared with the 4.8% to 5.2% rates typically offered by traditional banks for similar loan sizes.
• Flexible repayment terms, allowing borrowers to defer payments for the first year while they stabilize their income or complete home‑renovation projects.
• Eligibility for first‑time homebuyers as well as individuals who have previously owned a home but are looking to upgrade or relocate.

Kotek’s application process is streamlined through a partnership with the Coos Bay Housing Authority. Prospective borrowers must first submit an online pre‑qualification questionnaire that assesses income, credit score, and housing needs. Once pre‑qualified, applicants receive a personal financial advisor who helps them navigate the combined loan structure and any available state or federal programs (e.g., USDA Rural Development loans, Oregon Housing and Community Services programs).

Impact on Local Communities

The program’s launch has already attracted interest. Within the first month, Kotek reported 68 applications—an 18% increase over the average monthly volume of its previous home‑buying products. Two early participants—a single mother of two from Coos Bay and a couple from Tillamook—have already closed on homes that would otherwise have been out of reach. “We were told we’d never get a mortgage,” said the mother, who works part‑time at a local seafood processing plant. “But with the KHLP, we were able to lock in a low rate and buy a house that fits our family.”

Community leaders predict that the tool could help reduce long‑term housing instability. “When families can afford to own, they’re less likely to face eviction or rent spikes,” said Tillamook County Commissioner Tom Boudreaux. “This is a proactive step toward creating stable, long‑term communities.”

Partnerships and Funding Sources

The KHLP is funded in part by a grant from the Oregon Housing and Community Services (OHCS), which has pledged $1.2 million toward affordable housing initiatives in the state’s coastal regions. Kotek also secured a loan from the Federal Home Loan Bank (FHLB) to underwrite the bridge loans. Together, these funding sources provide a safety net for both the lender and the borrowers.

In addition, Kotek has collaborated with local builders and developers to identify homes that can be purchased and renovated within a short timeframe. The lender’s website—link included in the original Kezi article—provides a searchable database of properties that qualify for the KHLP, along with estimated renovation costs and projected resale values.

Navigating the Program

The application portal, accessible at https://kotek.com/khpl, offers a step‑by‑step guide. Key sections include:

• Eligibility Checklist – outlines credit score ranges, income thresholds, and property types.
• Loan Calculator – allows applicants to estimate monthly payments under different down‑payment scenarios.
• Documentation Upload – supports digital submission of W-2s, bank statements, and employment verification.

Once an application is submitted, a Kotek loan officer contacts the applicant within 48 hours to schedule an initial consultation. The officer reviews the applicant’s financial profile, explains the blended loan mechanics, and determines whether the applicant qualifies for the 10% down‑payment assistance. If approved, the borrower receives a promissory note detailing the repayment schedule, interest rate, and any deferred payment provisions.

Looking Forward

While the KHLP is still in its infancy, the preliminary data are promising. Kotek’s Chief Financial Officer, Maya Patel, anticipates a 25% increase in program uptake over the next year, citing positive word‑of‑mouth and the growing need for affordable financing in the region. “We’re just scratching the surface,” Patel said. “There’s a lot of demand for a flexible, low‑cost financing solution, and we’re here to meet it.”

The program’s success could serve as a blueprint for similar initiatives across the Pacific Northwest. The Oregon Department of Housing has already expressed interest in expanding the model to other counties facing comparable affordability challenges.

Conclusion

Kotek’s new financing tool represents a significant development in Oregon’s housing landscape. By bridging the gap between traditional mortgages and the unique financial hurdles faced by many residents, the KHLP is offering a tangible path toward homeownership in Coos Bay and Tillamook. As the program matures, it may well become a cornerstone of the region’s strategy to build resilient, affordable communities in the face of rising prices and evolving market dynamics.