Whether you’re a novice or an experienced homebuyer, securing the right financing lets you purchase the home you want. This is especially true in competitive markets like Oregon, which is why lending options like the FHA loan Oregon have become increasingly popular in the state.
At Defy Mortgage, we offer 75+ loan programs for freelancers, entrepreneurs, real estate investors, and many more. Our team streamlines the home-buying process for first-time or seasoned homebuyers and eliminates delays for faster mortgage approvals. From FHA loans to first responder home loans, we customize our lending solutions to fit your needs and help you secure your ideal home with less hassle and stress.
With our 25+ years of experience in delivering tailored support and mortgage solutions in several states across the US, we’ll walk you through everything you need to know about FHA loans in Oregon. We’ll go over the 2024 FHA loan limits, eligibility criteria, and how these factors can affect your home-buying journey.
Let’s jump right in!
FHA Loan Limits in Oregon for 2024
The Federal Housing Administration (FHA) adjusts the limits for the FHA loan program annually to account for changes in real estate prices. In 2024, FHA loans Oregon had their limits increased to reflect higher home prices. This ensures that buying homes stays accessible in Oregon’s expensive real estate market.
The Basics of FHA Loan Limits
FHA loan limits are the maximum loan amounts insured by the FHA. The Department of Housing and Urban Development (HUD) sets these limits to 115% of the median home prices in each county to make sure borrowers can afford the standard housing in their local market. Since the cost of living in some counties can be vastly more expensive than others, FHA limits can starkly differ from one county to another.
FHA Loan Limits in Oregon By County
Just like in the rest of the U.S., FHA loans in Oregon have different borrowing loan limits depending on the county you want to purchase in. Here is a breakdown of how much you can borrow in each county for each type of residential property:
Oregon Counties | Units | |||
| Single | Duplex | Triplex | Fourplex | |
| BAKER | $498,257 | $637,950 | $771,125 | $958,350 |
| BENTON | $598,000 | $765,550 | $925,350 | $1,150,000 |
| CLACKAMAS | $679,650 | $870,050 | $1,051,700 | $1,307,050 |
| CLATSOP | $529,000 | $677,200 | $818,600 | $1,017,300 |
| COLUMBIA | $679,650 | $870,050 | $1,051,700 | $1,307,050 |
| COOS | $498,257 | $637,950 | $771,125 | $958,350 |
| CROOK | $498,257 | $637,950 | $771,125 | $958,350 |
| CURRY | $498,257 | $637,950 | $771,125 | $958,350 |
| DESCHUTES | $690,000 | $883,300 | $1,067,750 | $1,326,950 |
| DOUGLAS | $498,257 | $637,950 | $771,125 | $958,350 |
| GILLIAM | $498,257 | $637,950 | $771,125 | $958,350 |
| GRANT | $498,257 | $637,950 | $771,125 | $958,350 |
| HARNEY | $498,257 | $637,950 | $771,125 | $958,350 |
| HOOD RIVER | $724,500 | $927,500 | $1,121,150 | $1,393,300 |
| JACKSON | $498,257 | $637,950 | $771,125 | $958,350 |
| JEFFERSON | $498,257 | $637,950 | $771,125 | $958,350 |
| JOSEPHINE | $498,257 | $637,950 | $771,125 | $958,350 |
| KLAMATH | $498,257 | $637,950 | $771,125 | $958,350 |
| LAKE | $498,257 | $637,950 | $771,125 | $958,350 |
| LANE | $498,257 | $637,950 | $771,125 | $958,350 |
| LINCOLN | $498,257 | $637,950 | $771,125 | $958,350 |
| LINN | $498,257 | $637,950 | $771,125 | $958,350 |
| MALHEUR | $498,257 | $637,950 | $771,125 | $958,350 |
| MARION | $498,257 | $637,950 | $771,125 | $958,350 |
| MORROW | $498,257 | $637,950 | $771,125 | $958,350 |
| MULTNOMAH | $679,650 | $870,050 | $1,051,700 | $1,307,050 |
| POLK | $498,257 | $637,950 | $771,125 | $958,350 |
| SHERMAN | $498,257 | $637,950 | $771,125 | $958,350 |
| TILLAMOOK | $498,257 | $637,950 | $771,125 | $958,350 |
| UMATILLA | $498,257 | $637,950 | $771,125 | $958,350 |
| UNION | $498,257 | $637,950 | $771,125 | $958,350 |
| WALLOWA | $498,257 | $637,950 | $771,125 | $958,350 |
| WASCO | $498,257 | $637,950 | $771,125 | $958,350 |
| WASHINGTON | $679,650 | $870,050 | $1,051,700 | $1,307,050 |
| WHEELER | $498,257 | $637,950 | $771,125 | $958,350 |
| YAMHILL | $679,650 | $870,050 | $1,051,700 | $1,307,050 |
Counties like Multnomah and Clackamas have higher FHA loan limits due to their proximity to dense urban areas like Portland, where the cost of living is higher. In such counties, you can use the higher FHA loan limits to purchase better homes than you might in a county with lower limits.
Comparing Oregon’s FHA Loan Limits To National Average
Although buying a home in Oregon usually costs more compared to the national average, the state’s higher FHA loan limits offset the higher home prices. FHA loan limits in Oregon can go up to $724,500 for a single-family home, far higher than the national standard limit of $498,257.
While this usually only applies to expensive counties like Multnomah, where Portland—the largest city in Oregon—is located, choosing a county with higher loan limits can give you enough purchasing power to afford an above-mid-range home. On the other hand, loan limits in less expensive counties may only be enough to allow you to purchase a mid-range home.
Key Requirements for FHA Loans in Oregon
Qualifying for an FHA loan in Oregon has several key requirements. You need to have a minimum credit score, which will determine how much down payment you have to pay and a steady income to make timely payments. The property you intend to purchase also needs to meet certain FHA safety and quality standards. Here’s the rundown:
Minimum Credit Score and Down Payment
The primary requirement for getting an FHA loan in Oregon is meeting a minimum credit score, which can vary depending on the lender. Typically, FHA loans require a minimum score of 580 to get the lowest down payment option of 3.5% of the home’s purchase price.
However, in an expensive market like Oregon, some private mortgage lenders may require credit scores as high as 600-620. This is especially the case if these lenders have their own underwriting guidelines in addition to the FHA’s.
You can still qualify for an FHA loan if your score is 500, but you need to make a higher down payment of 10%, depending on the lender’s requirements. Meeting the lender’s preferred minimum credit score lowers the interest rates and provides favorable down payment terms.
Property Eligibility and Inspection Criteria
Not all properties are eligible for FHA loans. To be eligible, the property must be a single-family home, a multi-unit property of up to 4 units, a condominium, or a manufactured home. The FHA also requires that the buyer use the property as their primary residence for at least 12 months.
An FHA-approved appraiser will also conduct a buyer’s home inspection to make sure the property is free of cracks or leaks. The appraiser further checks the home’s safety and structural integrity, including electrical wiring, heating and cooling systems, and potential hazards like lead-based paint. Properties with too many hazards or are in poor condition may not qualify.
Debt-to-Income Ratio and Employment History
As with many other mortgage options, such as jumbo loans and DSCR loans, borrowers will need to have a good debt-to-income (DTI) ratio to get approved for an FHA loan in Oregon. This ratio shows what percentage of your monthly income goes towards paying mortgage payments, property taxes, mortgage insurance, homeowners insurance premiums, and other expenses.
Lenders usually prefer a DTI ratio of 43% or less, though some may accept lower or higher ratios depending on their policies. They might also review your employment history to see if you have a stable employment record and are able to keep up with your payments. Usually, you will have to show at least 2 years of steady income to secure a loan.
The Impact of Higher FHA Loan Limits on Borrowers
In November 2023, FHA loan limits were increased to enable homebuyers to purchase homes despite the increase in real estate prices in 2024. Thanks to these higher limits, borrowers can now purchase higher-priced homes and access better refinancing options.
Benefits for First-Time Home Buyers
With higher limits, first-time homebuyers can now qualify for higher loans. This gives them the option to buy nicer homes or properties in their preferred neighborhoods. Even more, some lenders in Oregon offer first-time home buyer programs with additional benefits, such as down payment assistance or better interest rates, which adds to the benefit of increased loan limits.
Implications for Current Homeowners Looking to Refinance
The new Oregon FHA loan limits offer more favorable refinancing opportunities. Homeowners looking to refinance their mortgage can benefit from lower interest rates, smaller monthly payments, shorter loan terms, and better access to home equity.
Effects on Housing Market Accessibility
FHA increased the FHA loan limits in response to rising home prices. Such an increase makes higher-priced homes more accessible in Oregon. Still, the benefits of this increased loan limit vary depending on the type of home you’re looking for and the neighborhood you want to purchase in.
FHA Loan Oregon FAQs
What are the income requirements for an FHA loan in Oregon?
Income requirements vary by lender, but generally, you need a stable income that supports your mortgage payments and other debts. While there are no strict income limits, your debt-to-income ratio should typically be 43% or less to meet acceptable criteria.
Can FHA loans be used to invest in properties in Oregon?
FHA loans are intended for properties that the owner will occupy. However, there are workarounds, such as using an FHA loan to purchase a multi-unit property so you can rent out the other units while living in one yourself.
If you’re considering alternative financing options, DSCR loans in Oregon might be a great choice for the state’s highly lucrative rental market. Alternatively, if you prefer not to rent out your property, fix-and-flip loans may be best for you.
What are the major changes to FHA loans in Oregon for 2024?
FHA loans in Oregon have new higher limits and updated income requirements and property eligibility standards for 2024. These increased FHA loan limits offer better refinancing opportunities, especially if your current mortgage is close to or exceeds the previous limits. This can result in lower interest rates or more favorable loan terms.
What are the benefits of choosing an FHA loan in Oregon?
FHA loans offer lower down payment requirements because they are intended to make homeownership more accessible. For this reason, they also have more flexible credit scores and downpayment requirements, competitive interest rates, and can be approved even if the borrower has past credit issues.
To top it off, FHA loans are assumable, meaning the debt can be transferred to another person if you want to sell your home. All of these advantages make FHA loans an attractive option, especially for first-time homebuyers or those with lower credit scores looking to achieve their homeownership goals in Oregon.
Can I buy any type of property with an FHA loan in Oregon?
FHA loans can be used to purchase a variety of property types, but they have to be your primary residence for at least 1 year. As long as you do that and meet all of the FHA’s property eligibility criteria, you can purchase any residential properties, like single-family homes, multi-unit properties (up to 4 units), and condos.
Key Takeaway
If you live in or are planning to move to Oregon but find it difficult to purchase a home in the state, an FHA loan Oregon can be just what you need to get permanent housing. FHA loan requirements can be quite stringent, but when you consider the low down payment, better interest rates, and even payment assistance programs, they have a considerable edge over conventional loans such as bank statement loans and P&L loans.
To successfully get approved for an FHA loan in the state of Oregon, keep in mind the standard FHA loan requirements, such as having a minimum credit score of 580 for a 3.5% down payment, a debt-to-income ratio of 43%, and a steady income. Pay attention to the different loan limits in different counties as well. It may be more advantageous to consider moving to another county that has a higher loan limit to potentially purchase a higher-quality home. Remember, requirements such as down payment, FICO, etc vay by lender.
Interested in exploring FHA loans and other home financing options? Schedule a call with Defy today for a one-on-one consultation. We tailor each of our lending programs with fast pre-approvals to help you move into your new home as soon as possible.
