FHA Loans

An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans.

What is a FHA Loan?

FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.

Benefits of FHA Loans

  • Only a 3 percent down payment is required.
  • Closing costs can be financed.
  • Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium.
  • More flexible underwriting criteria than conventional loans
  • FHA limits the amount lenders can charge for some closing cost fees (e.g. the origination fee can be no more than 1% of mortgage).
  • Loans are assumable to qualified buyers.

FHA Loan Eligibility

FHA Loans have more flexible requirements than a traditional conventional mortgage.

FHA Loan Limits

Different counties have different limits on how much you can borrow for an FHA Loan.

Get Pre-Approved for a FHA Loan

If you are a first time home buyer, or simply seeking a lower down payment in Hillsboro, Portland, or anywhere in Oregon, contact Baseline Mortgage, LLC at (503) 422-6013 for more information, or fill out the form on this page.