Summary: Home prices in the Portland, Oregon metropolitan area rose by double digits in 2016. As a result, the Portland area will get higher FHA loan limits in 2017. According to a recent announcement from the Department of Housing and Urban Development, 2017 FHA loan limit for a single-family home in Portland will go up to $408,250.
Back in September, we speculated that HUD might increase FHA loan limits for Portland in response to rapidly rising home values. It’s now official. In fact, federal housing officials raised the limits for most counties across the country.
This announcement came one week after the Federal Housing Finance Agency (FHFA) announced a similar increase for conforming loan limits across the U.S. This is no coincidence. FHA limits are actually calculated as a percentage of the conforming caps.
In related news, the FHFA announced that the conforming loan limits for Portland will also go up in 2017. The cap will rise to $424,100 next year, for a single-family home.
Portland FHA Loan Limits for 2017
In 2016, the FHA loan limit for Portland, Oregon (and the rest of Multnomah County) was $368,000 for a single-family home. In 2017, it will go up to $408,250, a year-over-year increase of more than $40,000.
Note: If you’re using a Federal Housing Administration-insured mortgage loan to buy a single-family home in Portland, the $408,250 loan limit applies to you. The other three categories apply to multi-family properties that are typically purchased by investors.
Affects Clackamas, Columbia, Multnomah, Washington and Yamhill Counties
FHA loan limits are set at the county level, so they can vary from one county to the next. But they are generally the same across metro areas. Thus, the increased limits shown above apply to the entire Portland metropolitan area, including the counties of Clackamas, Columbia, Multnomah, Washington and Yamhill.
The higher FHA loan limits for 2017 are a result of home price gains that occurred during 2016. The Portland metro area saw some of the biggest price increases of any city in the country.
According to Zillow, home values in Portland rose by a whopping 17% from December 2015 to December 2016 (compared to the national average of 6.2%). Prices in Beaverton rose by around 14% during the same period. Across Multnomah County, home values rose by more than 17%, based on Zillow’s numbers.
Want to Apply for the Program?
Do you plan to buy a house in the near future, using an FHA-insured mortgage loan? Do you have questions about the Portland loan limits for 2017, or other aspects of the program? We can help.
Sammamish Mortgage has been serving borrowers across the Pacific Northwest for more than 20 years. We offer many different types of home loans, including the ever-popular FHA program.
Please contact our staff with any questions you have, or to receive a rate quote.