Summary: The excitement of a new home purchase can sometimes override wisdom and prudence when…
Summary: FHA loan limits in Portland, OR have increased for 2020, much like in other parts of the state and country. In this article, we’ll discuss how much these limits have risen and what that means for you.
FHA loan limits for the Portland, Oregon metro area have been increased for 2020 in response to rising home values. In 2020, the FHA loan limit for a home purchased in the Portland area went up to $491,050. That’s for a single-family property. There are higher limits for multifamily properties like duplexes and triplexes.
Conforming loan limits have gone up as well.
Portland FHA Loan Limit For 2020
In 2020, the FHA loan limit for a single-family property in Portland is $491,050. This change was made in response to nationwide home-price gains that have occurred over the past year or so.
The Department of Housing and Urban Development (HUD) announced this change in December, and said that most counties across the nation are seeing higher limits in 2020.
These limits are based on median home values, and they’re usually the same across an entire metro area. So the $491,050 FHA loan limit for the Portland area applies to the following counties:
Home Prices Rising More Slowly in the Area
Speaking of home prices, the rate of appreciation has slowed considerably in the Portland area. From 2015 to 2017, Portland experienced some of the fastest home-price gains among U.S. cities. But the local real estate market began to cool in 2018, and house values are now rising more slowly.
According to Zillow, the median home price in the Portland metro was $467,600 in May 2020.
This means that home buyers in the area who plan to use this loan program in 2020 should have plenty of properties to choose from within that price range.
Those borrowers who need a higher level of financing can use a “jumbo” loan, provided they have sufficient income to make the monthly payments. (The FHA program is most commonly used by home buyers shopping within the low-to-middle price range.)
FHA vs. Conventional Mortgage Financing
The Federal Housing Administration’s loan program has been helping homeowners since the 1930s. It began during the Great Depression.
The program is especially popular with first-time buyers, because it allows for a low down payment of 3.5%. But it’s not limited to that group. Anyone who meets the basic criteria for the program can apply, and that includes repeat buyers who have owned homes in the past.
Unlike a conventional or “regular” mortgage product, FHA loans are insured by the federal government. This insurance backing allows mortgage lenders to be more flexible, in terms of borrower qualification criteria.
Need a Mortgage?
Sammamish Mortgage is a local mortgage company serving the broader Pacific Northwest region, including Washington state, Idaho, Colorado, and Oregon. We are proud to offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us if you have any questions or are ready to apply for a home loan.