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Portland, Oregon FHA Loan Limits Increased to $517,500 for 2021

Sammamish Mortgage
December 19, 2018
Last updated:
June 21, 2021
In This Article

FHA loan limits for the Portland, Oregon metro area have been increased for 2021 in response to rising home values. In 2021, the FHA loan limit for a home purchased in the Portland area is now $517,500. 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 2021

In 2021, the FHA loan limit for a single-family property in Portland is $517,500. 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 2021.

These limits are based on median home values, and they’re usually the same across an entire metro area. So the $517,500 FHA loan limit for the Portland area applies to the following counties:

County 1-Unit 2-Unit 3-Unit 4-Unit
Clackamas $517,500 $662,500 $800,800 $995,200
Multnomah $517,500 $662,500 $800,800 $995,200
Washington $517,500 $662,500 $800,800 $995,200
Yamhill $517,500 $662,500 $800,800 $995,200

Check out our mortgage loan limit tool for conventional, FHA, and VA loans.

Live Portland Mortgage Jul, 27, Tue, 2021

Home Prices Rising More Slowly in the Area

Speaking of home prices, the home prices in the Portland area have increased steadily over the past year. According to Zillow, the local Portland real estate market saw the average home price increase by 14.0% over the past 12 months. The median home price in the Portland metro is now $536,921 as of June 2021.

This means that home buyers in the area who plan to use this loan program in 2021 may find themselves getting into “jumbo loan” territory.

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 Portland mortgage lenders to be more flexible, in terms of borrower qualification criteria.

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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 and have been in the business since 1992 Please contact us if you have any questions or are ready to apply for a home loan.

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