FHA Loans Oregon

FHA loans continue to be the loan of choice for anyone purchasing a home with less than 20 per cent down. Many of the mortgage insurance options previously available for home buyers no longer exist. One of the reasons this is happening has to do with the continued losses encountered by the private mortgage insurance (PMI) companies. This article in Housing Wire shows what has happened to MGIC, one of the larger PMI companies.

But, where the PMI companies are withdrawing, FHA is filling a lot of the gaps. There is no mortgage insurance company that will allow purchase of a manufactured home with less than 20% down that I can find, but FHA will finance a manufactured home with 3.5% down. Credit scores also are determining factors as to what loan to value is available on a conventional loans, with higher premiums due on lower credit score and higher loan to value, where FHA is the same for any credit score and only changes from a .55 factor at 96.5% to .5 factor for 95% and below.

FHA also allows a non-occupant co-borrower to make a loan workable for someone with limited income but conventional financing doesn’t. There are worlds of differences between the two where FHA does remain the loan of choice for anyone with limited down payment and less than pristine credit. If you have questions about an FHA loan for your purchase, give me a call at 541-342-7576/541-221-3455 cell or e-mail me. I am here to help.