What is an FHA Loan? Requirements, How to Get One and Best Lenders
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Alaya Linton
Linton is a freelance writer, speaker, financial coach, and creator of the award-winning blog, hopeandcents.com. Her own journey of overcoming financial struggles gave her a passion for teaching and encouraging others to take control of their money. Alaya’s writing and personal story have been featured in multiple publications including U.S. News & World Report, LendingTree, The Balance, and AOL Finance.
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Timothy Manni
Timothy Manni started his career as a writer, but for the better part of the last 15 years he has been an editor and content team leader in the mortgage and home buying space. For six years, he lead the Mortgage Content team at NerdWallet, and before that he was the managing editor at HSH.com. Currently, he’s utilizing his years of expertise to help websites like LendingTree, Yahoo Finance and MoneyGeek elevate the information they are sharing with consumers.
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FHA loans are backed by the Federal Housing Administration (FHA). These mortgages aim to make homeownership more accessible by offering flexible credit requirements and low down payment minimums. As a result, FHA loans are popular with first-time homebuyers and borrowers with less-than-perfect credit or limited savings.
If you plan to purchase a home with an FHA loan, your mortgage will be subject to a maximum loan amount. The 2024 FHA loan limit for single-family homes in Oregon is $498,257 for most of the state. However, some areas have higher loan amounts—up to $724,500 in Hood River County.
| County name | One unit | Two units | Three units | Four units | Median sales price |
|---|---|---|---|---|---|
| BAKER | $498,257 | $637,950 | $771,125 | $958,350 | $215,000 |
| BENTON | $598,000 | $765,550 | $925,350 | $1,150,000 | $520,000 |
| CLACKAMAS | $679,650 | $870,050 | $1,051,700 | $1,307,050 | $591,000 |
| CLATSOP | $529,000 | $677,200 | $818,600 | $1,017,300 | $450,000 |
| COLUMBIA | $679,650 | $870,050 | $1,051,700 | $1,307,050 | $591,000 |
| COOS | $498,257 | $637,950 | $771,125 | $958,350 | $310,000 |
| CROOK | $498,257 | $637,950 | $771,125 | $958,350 | $385,000 |
| CURRY | $498,257 | $637,950 | $771,125 | $958,350 | $376,000 |
| DESCHUTES | $690,000 | $883,300 | $1,067,750 | $1,326,950 | $589,000 |
| DOUGLAS | $498,257 | $637,950 | $771,125 | $958,350 | $295,000 |
| GILLIAM | $498,257 | $637,950 | $771,125 | $958,350 | $177,000 |
| GRANT | $498,257 | $637,950 | $771,125 | $958,350 | $212,000 |
| HARNEY | $498,257 | $637,950 | $771,125 | $958,350 | $150,000 |
| HOOD RIVER | $724,500 | $927,500 | $1,121,150 | $1,393,300 | $630,000 |
| JACKSON | $498,257 | $637,950 | $771,125 | $958,350 | $399,000 |
| JEFFERSON | $498,257 | $637,950 | $771,125 | $958,350 | $330,000 |
| JOSEPHINE | $498,257 | $637,950 | $771,125 | $958,350 | $360,000 |
| KLAMATH | $498,257 | $637,950 | $771,125 | $958,350 | $242,000 |
| LAKE | $498,257 | $637,950 | $771,125 | $958,350 | $160,000 |
| LANE | $498,257 | $637,950 | $771,125 | $958,350 | $425,000 |
| LINCOLN | $498,257 | $637,950 | $771,125 | $958,350 | $376,000 |
| LINN | $498,257 | $637,950 | $771,125 | $958,350 | $365,000 |
| MALHEUR | $498,257 | $637,950 | $771,125 | $958,350 | $325,000 |
| MARION | $498,257 | $637,950 | $771,125 | $958,350 | $430,000 |
| MORROW | $498,257 | $637,950 | $771,125 | $958,350 | $275,000 |
| MULTNOMAH | $679,650 | $870,050 | $1,051,700 | $1,307,050 | $591,000 |
| POLK | $498,257 | $637,950 | $771,125 | $958,350 | $430,000 |
| SHERMAN | $498,257 | $637,950 | $771,125 | $958,350 | $228,000 |
| TILLAMOOK | $498,257 | $637,950 | $771,125 | $958,350 | $360,000 |
| UMATILLA | $498,257 | $637,950 | $771,125 | $958,350 | $275,000 |
| UNION | $498,257 | $637,950 | $771,125 | $958,350 | $250,000 |
| WALLOWA | $498,257 | $637,950 | $771,125 | $958,350 | $285,000 |
| WASCO | $498,257 | $637,950 | $771,125 | $958,350 | $344,000 |
| WASHINGTON | $679,650 | $870,050 | $1,051,700 | $1,307,050 | $591,000 |
| WHEELER | $498,257 | $637,950 | $771,125 | $958,350 | $130,000 |
| YAMHILL | $679,650 | $870,050 | $1,051,700 | $1,307,050 | $591,000 |
How are FHA loan limits determined?
Each year, median home prices in the U.S. are studied to determine maximum mortgage amounts for FHA loans. The loan limits vary by county, metro area and property type. FHA loan limits are a percentage of conforming loan limits, which apply to most conventional loans (non-government mortgages).
Since median home prices vary across the country, FHA loans have a base limit called the “floor.” The floor is the lowest FHA loan limit and is in effect in most areas. The highest loan limit is called the “ceiling” and is in effect in designated high-cost areas. Several counties and metro areas have loan limits between the floor and ceiling.
The national 2024 FHA floor is $498,257, and the ceiling is $1,149,825. Oregon’s highest FHA loan limit is $724,500, which is in effect in Hood River County, where the median home price is $630,000.
FHA guidelines are more lenient than conventional mortgages in some areas, but you’ll still need to meet multiple requirements to qualify for an FHA loan in Oregon. Requirements include:
→ 500 or 580 minimum credit score. The minimum credit score for an FHA loan is 500, but you’ll have to put 10% down. If you want to put 3.5% down, you’ll need a credit score of 580 or higher.
→ 3.5% or 10% minimum down payment. FHA loans have a minimum down payment of 3.5% as long as your credit score is at least 580; if your score is between 500 and 579, the minimum down payment is 10%.
→ 43% maximum debt-to-income ratio. Your debt-to-income (DTI) ratio is the sum of your monthly debt payments compared to your monthly gross income, and lenders use it to assess your ability to repay the loan. FHA lenders typically want a DTI ratio of at least 43% but will allow higher ratios if you have compensating factors such as a high credit score or significant cash reserves.
→ Mortgage insurance. FHA loans require two types of mortgage insurance: an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP). The UFMIP is 1.75% of the loan amount, which you can finance with the mortgage principal. The MIP typically ranges between 0.15% and 0.75% and is added to your monthly payments.
→ Income. FHA loans don’t have income restrictions, but lenders will look for at least a two-year job history and proof of consistent income.
→ Occupancy. You must live in the home as your primary residence for at least one year after buying it.
→ FHA appraisal. Every property financed with an FHA loan must undergo an FHA appraisal to assess its value and ensure it meets FHA standards.
Buying a multifamily property with an FHA loan
Purchasing a multifamily home is an excellent way to invest in real estate as a beginner. With an FHA loan, you can buy a two-, three- or four-unit property with the standard 3.5% minimum down payment.
FHA loans for two- to four-unit properties follow standard guidelines but have additional requirements, including:
→ Cash reserves. Lenders will verify you have a certain amount of liquid savings.
→ Occupancy. You must plan to occupy one of the units as your primary home for at least one year.
→ Rental income. If you plan to rent out the other units, lenders will calculate a portion of the expected rental income to qualify you for the loan.
| Number of units | Low-cost FHA loan limit |
|---|---|
| Two | $637,950 |
| Three | $771,125 |
| Four | $958,350 |
Higher loan limits will apply to multifamily homes in high-cost areas in Oregon.
FHA lenders in Oregon
How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
| Lender | LendingTree rating | Minimum FHA credit score | |
|---|---|---|---|
 |  Read our review | 580 | Get offers |
 | Read our review | Not disclosed | Get offers |
 | Read our review | 580 | Get offers |
 | Read our review | 580 | Get offers |
 |  Read our review | 580 | Get offers |
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On this page
- Oregon FHA loan limits by county
- How are FHA loan limits determined?
- How to qualify for an FHA loan in Oregon
- FHA lenders in Oregon
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