The maximum mortgage amount for Portland, Oregon has been increased for 2018 in response to rising home values. This increase applies to FHA, VA and conventional home loans. Also, jumbo mortgage loans are still available for Portland home buyers with sufficient income. Here’s an updated look at the higher maximum mortgage amounts for Portland, Oregon in 2018.
Maximum Mortgage Loan Amounts in Portland, 2018
At the end of 2017, several government and housing agencies announced that they would increase the maximum mortgage limits for their respective home loan programs. These changes were made by the Department of Housing and Urban Development (HUD), which manages the FHA loan program; as well as the Federal Housing Finance Agency, which establishes limits for conventional mortgage loans.
Conforming: The conforming loan limit for Portland (for conventional or non-government-insured mortgages) was increased to $453,100 in 2018. This maximum mortgage amount applies to all counties of Oregon with the exception of Hood River County, which has a higher conforming loan limit. Housing officials increased Portland loan limits for the last three years in a row, in response to steadily rising home values.
VA: Department of Veterans Affairs (VA) home loans use the same limits as conforming, so the maximum mortgage amount that the VA will guarantee is $453,100. Though it’s possible for borrowers to go above that cap, if they put some money down.
FHA: The Federal Housing Administration uses a different set of limits for its mortgage insurance program. And they were also increased for 2018. The FHA loan limit for a single-family home purchase in Portland, Oregon rose to $448,500 in 2018. This is good news for borrowers who are planning to use an FHA loan to buy a home in Portland. It gives borrowers more financing capacity, which is important given the rapid rise in home values for this market.
Jumbo: Because of these changes, the jumbo loan threshold for Portland, Oregon and the surrounding county will increase as well. During 2018, any mortgage loan that exceeds the conforming limit of $453,100 will be considered a jumbo. To qualify for such mortgage products, borrowers must demonstrate that they have sufficient income to repay the loan.
Home-Price Gains Prompted These Changes
The maximum mortgage amount for Portland was increased for 2018 in response to a steadily rising home values. While annual home-price appreciation seems to be slowing down a bit, prices have risen considerably over the last couple of years. It was the 2017 gains, in particular, that prompted federal housing officials to raise the loan limits for Portland, Oregon and the rest of the state.
According to the real estate information company Zillow, the median home value for Portland reached $404,500 as of December 2017. And we could see additional growth over the coming months. The company’s analysts and economists expect home values in the area to rise gradually throughout 2018.
This is partly the result of inventory shortages. There is strong demand from home buyers within the Portland housing market, but not enough properties for sale to meet that demand. This has put upward pressure on prices over the last few years.