Everything keeps on changing in the mortgage-verse (that’s a thing right?- like mortgage + universe = mortgageverse?).  One major change that will effect our market is the recent/pending REDUCTION of the maximum allowed FHA mortgage loan amount.  These loan amounts are subject to change every year, but we’ve been lulled into the idea the $417k was the maximum amount for the longest time.  I think we got upped to this amount sometime in 2007??  I’m embarrassed to say that I can’t remember when we’ve been below that dollar amount, and it’s not even important right now.  What actually IS important to me and you is that the new max loan amount for the Portland metro area (Multnomah, Clackamas, Washington, and Clark County WA) is now $362,250.00 for a single family one unit property.

I always think of these things in terms of how it will impact our market, and the thing to consider is that buyers used to be able to buy properties for $432,000.00 and still get FHA financing with that minimum 3.5% down payment.  (432k – 3.5% down = $417k)

The new upper limit for FHA buyers who want to benefit from that minimum down payment is now $375,000.00.  If an FHA buyer in Portland, Oregon (or an FHA buyer in Vancouver, WA) wants to buy a home for more than $375k, they need to be prepared to bring MORE than the 3.5% minimum down payment.

So this is the main takeaway in my opinion.  Single family homes for sale above $375k  just took a punch to the face.

Conforming loan limits remain the same, so its business as usual there.

Here are the rest of the numbers for maximum FHA loan amounts throughout the state of OR.