FHA Loan Benefits in Oregon
Low Down Payment
As little as 3.5% down with a 580+ credit score. 10% down with scores 500–579.
Flexible Credit
FHA allows lower credit scores than conventional financing. Great for buyers rebuilding credit.
Rate Buydown Eligible
FHA loans are fully eligible for 2-1, 1-0, and permanent rate buydowns to lower your payment.
Gift Funds Allowed
Down payment can come from family gifts — 100% gift funds accepted for FHA loans.
Higher DTI Allowed
FHA allows higher debt-to-income ratios than conventional loans in many cases.
Refinance Options
FHA Streamline refinance makes it easy to lower your rate with minimal documentation.
FHA Loan Requirements in Oregon
- ✓Credit Score: 580+ for 3.5% down; 500–579 for 10% down
- ✓Down Payment: 3.5% minimum (can be a gift from family)
- ✓Employment: 2-year employment history preferred; self-employed borrowers acceptable with documentation
- ✓Property: Must be primary residence; meet FHA Minimum Property Standards (MPS)
- ✓Loan Limits: Set by county; contact me for current Oregon FHA loan limits
- ✓MIP: 1.75% upfront + annual premium paid monthly (cancels after 11 years with 10%+ down)
FHA Loan FAQ
What is the minimum down payment for an FHA loan?
580+ credit score = 3.5% down. 500–579 credit score = 10% down. Down payment can come from gifts or approved assistance programs.
Does FHA require mortgage insurance?
Yes. FHA requires 1.75% upfront MIP (can be rolled into the loan) plus annual MIP paid monthly. With 10%+ down, MIP cancels after 11 years. With less than 10% down, MIP remains for the life of the loan.
Can I combine FHA with a rate buydown?
Absolutely. FHA loans are fully eligible for 2-1, 1-0, and permanent rate buydowns. The seller can contribute to the buydown cost. This can significantly reduce your payment — especially in the first years of the loan.
Can I buy with bad credit using FHA?
FHA is specifically designed for borrowers with lower credit scores. With 580+ you can put 3.5% down. For complex credit histories, I can evaluate manual underwriting options.
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