FHA Loans: What You Need to Know in 2022
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2022 FHA Loan Limits in Oregon

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Backed by the Federal Housing Administration (FHA), FHA loans offer low down payment and have flexible credit score requirements, making them a viable option for homebuyers who may have difficulty qualifying for a conventional home loan. However, homebuyers should be aware that there are limits to how much they can borrow if they are considering an FHA loan. In Oregon, the 2022 FHA loan limit for a single-family home is $420,680. In higher-priced neighborhoods within the state, the FHA loan limit for a single-family is $970,800.

Oregon FHA loan limits by county

County nameOne unitTwo unitsThree unitsFour unitsMedian sales price
BAKER$420,680$538,650$651,050$809,150$165,000
BENTON$483,000$618,300$747,400$928,850$420,000
CLACKAMAS$598,000$765,550$925,350$1,150,000$520,000
CLATSOP$437,000$559,450$676,200$840,400$380,000
COLUMBIA$598,000$765,550$925,350$1,150,000$520,000
COOS$420,680$538,650$651,050$809,150$250,000
CROOK$420,680$538,650$651,050$809,150$290,000
CURRY$420,680$538,650$651,050$809,150$323,000
DESCHUTES$569,250$728,750$880,900$1,094,700$495,000
DOUGLAS$420,680$538,650$651,050$809,150$252,000
GILLIAM$420,680$538,650$651,050$809,150$125,000
GRANT$420,680$538,650$651,050$809,150$160,000
HARNEY$420,680$538,650$651,050$809,150$123,000
HOOD RIVER$599,150$767,000$927,150$1,152,250$521,000
JACKSON$420,680$538,650$651,050$809,150$352,000
JEFFERSON$420,680$538,650$651,050$809,150$280,000
JOSEPHINE$420,680$538,650$651,050$809,150$335,000
KLAMATH$420,680$538,650$651,050$809,150$185,000
LAKE$420,680$538,650$651,050$809,150$105,000
LANE$420,680$538,650$651,050$809,150$358,000
LINCOLN$420,680$538,650$651,050$809,150$335,000
LINN$420,680$538,650$651,050$809,150$318,000
MALHEUR$420,680$538,650$651,050$809,150$293,000
MARION$420,680$538,650$651,050$809,150$365,000
MORROW$420,680$538,650$651,050$809,150$228,000
MULTNOMAH$598,000$765,550$925,350$1,150,000$520,000
POLK$420,680$538,650$651,050$809,150$365,000
SHERMAN$420,680$538,650$651,050$809,150$100,000
TILLAMOOK$420,680$538,650$651,050$809,150$298,000
UMATILLA$420,680$538,650$651,050$809,150$228,000
UNION$420,680$538,650$651,050$809,150$208,000
WALLOWA$420,680$538,650$651,050$809,150$226,000
WASCO$420,680$538,650$651,050$809,150$289,000
WASHINGTON$598,000$765,550$925,350$1,150,000$520,000
WHEELER$420,680$538,650$651,050$809,150$120,000
YAMHILL$598,000$765,550$925,350$1,150,000$520,000

How are FHA loan limits determined?

When you apply for an FHA loan, there will be a limit to how much you can borrow to purchase a home. This limit is set by the U.S. Department of Housing and Urban Development (HUD), and it is based on the conforming loan limit determined by the Federal Housing Finance Agency (FHFA).

Each year, the FHFA reviews the previous year’s average cost of homes in each county. The average is then used to set the conforming loan limit, which HUD then uses to calculate the year’s FHA loan limits.

In 2022, the FHA loan limit ranges from 65% of the conforming loan limit, $420,680 — also called the “floor” — up to the 150%, called the “ceiling.” The ceiling only applies in some higher cost counties.

How to qualify for an FHA loan in Oregon

As with any home loan, an Oregon FHA loan has requirements that you will want to review to determine your eligibility before you apply. If you are a first-time homebuyer applying for an FHA loan, you can also take advantage of Oregon first-time buyer programs, which provide lower interest rates, down payment assistance and closing cost assistance.

Although the loan limit varies based on the home’s location, all homebuyers must meet the minimum FHA loan requirements to be approved:

  • Down payment of 3.5%. A down payment of only 3.5% is required if your credit score is at least a 580.
  • Credit score of at least 500. If your credit score falls between 500 and 579, you may still qualify for an FHA loan, but a 10% down payment is required. Check your credit score here.
  • Debt-to-income (DTI) ratio of 43% or less. Homebuyers need a 43% or less debt-to-income ratio, which measures a person’s ability to manage their debt and repay the money they borrowed.
  • Home appraisal. A home appraisal is required for all homes purchased using an FHA loan. This inspection determines the value of the home and whether or not it meets FHA appraisal guidelines.
  • Mortgage insurance. Both upfront mortgage insurance premium (UFMIP) and annual mortgage insurance premium (MIP) are required. Homebuyers can expect UFMIP to equal 1.75% of the loan amount. Additionally, the MIP will range between 0.45% and 1.05%, which is evenly divided into 12 monthly installments that are added to the monthly mortgage payment.
  • Primary residence. You must live in the home you purchase with an FHA loan for at least one year after buying it.

Buying a multifamily property with an FHA loan

This specific loan program doesn’t restrict homebuyers to single-family homes. If the owner plans to occupy one of the units, they can apply for an FHA loan and purchase a multifamily home, including one- to four-unit homes. You must live in one of the units as your primary residence for at least one year, however.

FHA lenders in Oregon

Below is a list of highly rated lenders offering FHA loans in Oregon.

Lender name LT rating Minimum FHA credit score 
Lower10/10580
Rocket Mortgage9.5/10580
PennyMac9/10620
AmeriSave8/10600
Churchill Mortgage8/10620

 

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