FHA Loan Amounts Increase In Portland
First-time buyers recently got a boost as FHA lending limits were raised to keep pace with Portland-area house prices.
FHA financing is one of the most popular first-time homebuyer loan programs. The Federal Housing Administration (a department of the U.S. Department of Housing and Urban Development) was established in 1934 to encourage home ownership. FHA creates favorable qualification standards for first-time buyers by insuring the loans offered through private lenders, thereby reducing the lender’s risks.
Benefits of FHA loans to buyers include low down payments (as low as 3%), low closing costs, and easier credit qualifying.
As of October, the maximum mortgage limit was raised from $243,200 to $284,600, a 17% increase over last year. Homes within Multnomah, Clackamas, Washington, Yamhill, and Columbia counties qualify for the higher loan amount.
How does it all break down? Consider a 30-year, 6.0% FHA loan for a $293,400 home.* A 3% down payment equals $8,802, leaving $284,600 (the FHA max) to be financed. Monthly principal and interest will run $1,706. That kind of payment can buy you a home priced above the average in all markets except Lake Oswego, West Linn, and northwest Washington County.
* Talk to a qualified loan officer for your specific case.
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Add comment November 14th, 2005
