Oregon consistently ranks as one of the best states to live in the country, so if you’re thinking of relocating and purchasing a house in the Beaver State, you’ve made a great decision.
Although a house with a view of Crater Lake sounds amazing, assessing all of your home financing options probably doesn’t. What is amazing is the money saving opportunities the Oregon FHA loan program can offer. Continue reading to see why an FHA loan in Oregon may be right for you.
Why Consider an FHA Loan in Oregon
Oregon has been deemed one of the most beautiful states due to its lush greenery and scenic views. That said, it’s a great place to purchase a home. So many Oregon residents are deciding on an FHA loan, so as of April 2019, the total value of FHA loans in the state of Oregon was more than $155 million!
Benefits of using FHA Loans in OR
- FHA loans are great for first-time homebuyers, especially those who can’t or don’t want to put down a large down payment.
- FHA mortgage rates are typically lower than conventional mortgage rates.
- FHA down payment and credit score requirements are typically lower than conventional loans
- Sellers can contribute up to 6% of the purchase price or appraised value (whichever is less) towards the buyers’ closing costs.
- FHA loans are assumable
FHA Loan Limits in Oregon
In most of Oregon, the baseline limit of $314,827 applies, but in places like Portland and Hillsboro, the limit is $474,950 due to the relatively high cost of real estate in these areas. This number is adjusted annually and is fitted to each county to make sure most people can afford the homes. See the link below for a full list of Oregon FHA loan limits.
Are You Eligible for an FHA Loan in OR?
You may be eligible for an FHA loan, if you:
- Have 2 years of steady employment, preferably with the same employer.
- Have had steady income (or increasing income) in the past two years.
- Have had less than two 30-day periods of late payments on your credit report.
- Have declared bankruptcy no less than two years ago and have maintained good credit since.
- Have not been a party in a foreclosure for at least three years and have maintained good credit since.
- Anticipate your mortgage payment will be equal to or less than 30% of your gross income.
What Do You Need to Apply for an FHA Loan in MO?
Buyers must be able to provide the following information and documents as requested by lenders:
- The addresses of all your residences over the past two years.
- The names of your employers over the past two years.
- W2's for the past two years and current paycheck stubs.
- Your current gross monthly salary.
- Your Social Security Number.
- Names, addresses, and account numbers with balances on all checking and savings accounts.
- Addresses and loan information of any other real estate you owned.
- Self-employed individuals will need to provide personal tax returns for the past two years and a current income statement and balance sheet for the business.
- Students will need to provide evidence of enrollment. If you have student loans, you need to provide verification information.
Note: Facts and figures sourced from the latest statistics available at the time of this writing including data from the United States Department of Labor, United States Census Bureau and the United States Department of Housing and Urban Development.