skip to Main Content

Portland Gets Higher Loan Limits in 2019, Despite Leveling Home Prices

Portland, Oregon is just one of many cities that will see higher conforming loan limits in 2019. Federal housing officials announced yesterday that the maximum conforming mortgage size for Portland and most of the U.S. will go up next year. This is due to rising home prices.

In 2019, the conforming loan limit for a single-family home in Multnomah County will be $484,350. The same goes for all other counties in Oregon.

Home Prices Rose Nationwide in 2018

On November 2o18, the Federal Housing Finance Agency (FHFA) announced that it was increasing conforming loan limits for most U.S. counties in 2019. This was the result of home-price appreciation that occurred over the last year or so.

According to the latest data, the median home value in the U.S. rose by more than 6% over the last year (as of November 2018). That’s primarily why the FHFA raised conforming loan limits for Portland, Oregon and most other cities across the country. They did it to keep pace with rising house prices.

According to the agency’s November 27 press release:

“As a result of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, the maximum conforming loan limit will be higher in 2019 in all but 47 counties or county equivalents in the U.S.”

We expect the U.S. Department of Veterans Affairs to make a similar announcement soon, regarding the limits for VA-guaranteed home loans. The Federal Housing Administration (FHA) could follow suit, as well. We will publish additional updates if and when those two loan programs are adjusted.

Terminology: A “conforming” loan is one that meets the size restrictions and other purchasing criteria used by Freddie Mac and Fannie Mae. These limits vary by county because they are based on house prices. When a person borrows more than that limit, it’s referred to as a “jumbo” loan. Jumbo mortgages generally have stricter criteria, due to their larger size.

Portland, Oregon Gets Higher Loan Limits in 2019

Home prices in Portland actually haven’t risen much over the last year. For a while there (in 2016 and 2017), the Portland real estate market was experiencing rapid home-price appreciation. But things have cooled down quite a bit over the last year or so. In fact, the median home value in and around the city has hardly budged thus far during 2018.

Despite this cooling trend, Portland, Oregon will still get higher conforming loan limits in 2019. That’s because federal housing officials raised the baseline or “floor” for the nation as a whole.

In 2019, every county in Oregon will have a single-family conforming loan limit of $484,350. That’s an increase of more than $30,000 from this year’s cap of $453,100.

But just to be clear, borrowers with sufficient income can often qualify for “jumbo” mortgage financing that exceeds the limit for their county. The $484,350 figure mentioned above is just the threshold between jumbo and conforming mortgage loans in Oregon, during calendar year 2019.

Get Today’s Portland Mortgage Rates and Cost in Seconds Jun, 25, Tue, 2019

Find Out How Much You Can Borrow

Loan limits are the size restrictions that apply to those mortgage loans that are sold to Freddie Mac and Fannie Mae. Depending on your financial situation, you might be able to borrow more than the limit — or less. It largely depends on your current income and debt situation. And that’s where we come in.

Our knowledgeable loan officers can review your current financial situation and tell you how much you might be able to borrow. This is a great way to begin the home buying process, because it allows you to narrow your search based on your financing ability.

Please contact us if you have mortgage-related questions, or if you’d like to be pre-approved for a home loan in Oregon. 

Back To Top