The maximum VA loan amount for Oregon will increase in 2018 due to significant home price gains that occurred over the last year. In 2018, the maximum amount the VA will guarantee for borrowers with 100% financing will rise to $453,100 in most counties. It goes up to $454,250 in Hood River County (the one exception).
Max VA Loan Amount for Oregon: 2018 Update
In 2018 VA loan limits will be aligned with the limits used for conventional/conforming mortgage products, which are established by the Federal Housing Finance Agency (FHFA). And they’re both going up.
On November 28, the agency stated: “According to FHFA’s seasonally adjusted, expanded-data HPI, house prices increased 6.8 percent, on average, between the third quarters of 2016 and 2017. Therefore, the baseline maximum conforming loan limit in 2018 will increase by the same percentage.”
As a result of rising home values, the conforming and VA loan limits for most Oregon counties were increased from $424,100 in 2017, to $453,100 in 2018. This applies to all cities and counties within the state, with one exception — the limit for Hood River County goes up to $454,250. That is the max VA loan amount in Oregon for borrowers who wish to avoid making a down payment.
Borrowing More by Making a Down Payment
The maximum VA amount for Oregon (shown above) pertains to borrowers who wish to avoid making a down payment. As it states on the Department of Veterans Affairs website: “The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a downpayment.”
Oregon home buyers who need to borrow more than the limit are usually required to make a down payment for 25% of the difference. That’s the general rule that applies in most scenarios. Please contact us if you would like to know how much you might qualify to borrow, when using a VA loan.
How These Limits Stack up to Home Prices
The maximum VA loan amount for most Oregon home buyers will go up to $453,100 in 2018. Which begs the question: How does this amount relates to home prices in the state? The good news is that median home values across the state of Oregon tend to fall below the VA loan limit.
According to real estate reports published in December 2017, the median home value for Oregon had risen to around $313,000. That was an increase of about 7% over the same month a year earlier. In Portland, the median home price was around $405,000, as of November 2017.
In a real estate context, the “median” price shows where the middle of the market is. And in most cities in Oregon, the median currently falls below the maximum VA loan amount. This means that borrowers who wish to use a VA loan to buy a house in Oregon with no down payment should have plenty of homes to choose from, at least from a pricing perspective.
Three Big Benefits of Oregon VA Loans
The maximum VA loan amount for Oregon has gone up, and that’s good news for borrowers who are thinking about using this program. But there are other benefits to using a VA loan. Here are the top three.
1. No down payment. Eligible borrowers who use a VA loan to buy a house in Oregon can do so without making a down payment, as long as they stay within the limits mentioned above. This is a huge advantage for home buyers, particularly first-time buyers who don’t have a lot of money saved up for a down payment.
2. No mortgage insurance. With a conventional or “regular” home loan, borrowers who make a small down payment usually have to pay for mortgage insurance. This is an added cost that can increase the size of your monthly payments. But with a VA loan, most borrowers can qualify for 100% financing without mortgage insurance.
3. Flexible qualification criteria. VA loans tend to have a comparatively low default and foreclosure rate, when compared to other mortgage programs. This, combined with the government backing, allows lenders to be fairly flexible with their qualification criteria. In short, the VA loan program is one of the easiest mortgage options to qualify for these days.