Oregon FHA Mortgages
Buying a new house can be one of the most exciting experiences of your life! Knowing that you actually own the home you come home to each day is one of the best feelings in the world! But sometimes, if you've been renting, homeownership can seem a lifetime away. If the credit requirements of traditional loans aren't daunting enough, having to save 20% of the purchase price as a down payment is enough to make anyone a bit nervous. However, in most cases, buying your first home doesn't have to involve perfect credit and it certainly doesn't have to wait until you've saved up a huge chunk of cash.
Why Go FHA?
The Oregon FHA home loan program is a great option if you have less than stellar credit or no cash saved up for a down payment. Managed by the Federal Housing Administration, Oregon FHA loans only require 3.5% of the purchase price as a down payment and do not have stellar credit. In fact, even borrowers who have previously declared bankruptcy are potentially eligible for an FHA loan if they've maintained excellent credit since the discharge. These policies can be contrasted with traditional loan programs which typically require nearly perfect credit and large sums of money at closing, both for a down payment and for closing costs (the Oregon FHA loan program allows borrowers to roll the $6,000-$8,000 closing costs associated with surveys, inspections, and loan fees into the loan itself).
Oregon FHA Loan Limits
The Oregon FHA loan program does have limits regarding how much money each borrower can obtain from a loan under the program. For 2009, the baseline maximum loan limit for a single family home in most areas is $271,050. However, in order to ensure that buyers in every area (regardless of the cost of living) can afford to purchase a home, the FHA adjusts the maximum loan value in areas where housing is more expensive. For instance, the limit in Portland is $418,750, while the limit in Bend is $447,500. If you're considering a multi-family dwelling, check with your lender since the maximum lending limit varies widely depending on the area and on the number of units in the dwelling.