Friday, March 7, 2008

New FHA Loan Limits!

As of yesterday, the Federal Housing Administration (FHA) increased the loan limits for Oregon. The Portland Metro Area FHA loan limit is now $418,750 for a single family home.

What does this mean? An FHA loan is a great option for someone who is looking at purchasing a home and wants to make a low down payment. FHA loans also tend to be more lenient with credit than other loan programs. The Department of Housing and Urban Development (HUD) is allowing the FHA to temporarily raise loan limits as part of the economic stimulus package. The lack of ability to qualify for FHA loans caused some people to go through various "exotic" sub prime lenders. FHA Brian Montgomery suggests, "Many families all over the U.S. will benefit from this access to credit, and increasing these loan limits will inject much-needed liquidity into the housing market."

If you live in a county other than Multnomah, or are curious to see how other counties loan limits were affected, check out https://entp.hud.gov/idapp/html/hicostlook.cfm. As always don't hesitate to contact me with questions or comments via my website at http://www.NathanWyllie.com

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