First time home buyers often face challenges not seen by more seasoned homeowners. The FHA mortgage allows these borrowers with less robust qualifying standards a chance to still obtain financing for their home purchase in Oregon. FHA Loans offer more “common sense underwritten” and the main thing they want to see is that the borrower can afford their payment and has an attempting to settle any past credit issues.
Another advantage for first time home buyers is that FHA mortgage does not require reserves in their account in order to be approved for a for the loan. Most conventional financing requires several months of payments in reserves to be approved. With FHA loans borrowers can get a loan without having to save up money for years.
Oregon FHA Loan Down Payment:
In order to be qualified, borrowers need to put down 3.5% of the purchase price of the loan. This down payment does not necessarily have to come from the borrower themselves. They can receive the 3.5% down payment from a family member, their church, their job, or from another quailed source. In addition, the closing costs can be gifted from the seller of the property up to 6% of the sales price. This means that a first time home buyer looking to purchase a home in Oregon with no money out of their pocket can actually accomplish this with FHA financing.
Most lenders and banks will require a 620 credit score to be approved for maximum 96.5% financing. Applicants that have a greater down payment of 5% or 10% can sometimes get approved with lower credit scores down to 580.
Oregon FHA Loan Limits:
The FHA program allows not only first time home owners but also existing home owners to get access to safe and secure 30 year fixed rate mortgage loans. These loans have low mortgage insurance requirements and loan amount limits that fit the needs of most home buyers, please see the county cart below.
Just submit the quick info request form on this page to get started today. One of our loan specialists will follow up with you immediately to go over your options and qualifying requirements.
As you can see the FHA program is excellent for types of borrowers. In future posts, we will discuss the other FHA programs such as the FHA Streamlined refinance loans and the FHA 203k.
Homebuyers outside of the major cities like Portland, Salem and Eugene should take time to also learn about the 100% USDA mortgage. USDA offers many advantages with no down payment required.
Serving all of OR: Gresham, Hillsboro, Beaverton, Bend, Medford, Springfield, Corvallis, Aloha, Albany, Tigard, Lake Oswego, Keizer, Grants Pass, Oregon City, McMinnville, Redmond, Tualatin, West Linn, Woodburn, Newberg