30 Year Fixed FHA are common loans for first time buyers (FTB) as many times the guidelines are less strict than for conforming loans. Sometimes this makes FHA a better choice for repeat buyers as well. We can help you compare FHA and conforming options. FHA is for owner occupied and only one FHA loan at a time in most cases. There are rare exceptions to these two requirements. The major key is that these loans meet required 'guidelines' set by HUD, the government agency that administers FHA loans.

 

Interest rates do not vary much by risk, like conforming loans do, and are usually about 0.5% lower than conforming loans. 

 

Two types of Mortgage Insurance (MI) are both required on all FHA loans. 'Upfront' and 'Monthly'. Currently the upfront MI is 1.75% of the 'Base Loan Amount' and is financed on top of the loan for a 'Total Loan Amount'. FHA monthly MI with 3.5% down is a 0.85% factor. FHA monthly MI on purchase with less that 10% down is never cancellable and is there for the life of the loan, unlike conforming monthly MI which may be able to be cancelled. 

 

On an owner occupied purchase, gifts are allowed from relatives, and sellers can pay some or all of buyer's closing costs and pre-paids to reduce funds needed to close.

 

While the HUD guidelines are 100's of pages long, this brief description are some of the general requirements. There are restrictions and you can't necessarily combine parameters and get a loan. FHA Mortgage loans change requirements frequently. Requirements change without notice. Please call us to discuss your situation and goals. It is too complex to try and learn all the nuances on the internet.

 

FHA LOAN LIMITS for 2025 (Price is, or can be, higher)

PDX Metro: Multnomah, Clackamas, Washington, Columbia, Yamhill and Clark counties. Other counties have different limits.

1 Unit      $695,750

2 Unit     $890,700

3 Unit     $1,076,650

4 Unit     $1,338,000

 

PURCHASE:

Minimum Down Payment as a percentage of purchase price:

Owner Occupied, SFR, Condo, PUD, 2-4 units, Manufactured Home          3.5%  

 

REFINANCE:

Maximum Loan to Value = percentage of value:

Owner Occupied, SFR, Condo, PUD, 2-4 units, Manufactured Home           96.5%

 

CASH OUT REFINANCE:

Maximum Loan to Value = percentage of value:

Owner Occupied, SFR, Condo, PUD, 2-4 units, Manufactured Home           80%

 

Pacific Sunset Mortgage, LLC. NMLS #1086349 ML-5769. Steve Emory Sr Loan Officer NMLS #45523. I am authorized to conduct business in Oregon and Washington States. 15455 NW Greenbrier Pkwy  Suite 100, Beaverton, OR 97006. Certain restrictions apply. This is not a commitment to lend. Applicants must qualify and Not all applicants will qualify. Equal Housing Lender. All opinions expressed by Steve Emory, on this website, on his Facebook pages, are Steve's opinions and do not reflect the opinions of Pacific Sunset Mortgage, LLC. You should not treat any opinion expressed by Steve as a specific inducement to take a particular mortgage or follow a particular strategy, but only as an expression of his opinion. You must make an independent decision regarding mortgages or strategies mentioned on his website. Before acting on information on this website, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial counselor. http://www.nmlsconsumeraccess.org/entitydetails.aspx/COMPANY/1806349