Why First-Time Buyers Choose FHA
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 building or rebuilding credit.
Gift Funds Welcome
100% of your down payment can come from family gifts — no need to have saved it yourself.
Higher DTI Accepted
FHA allows higher debt-to-income ratios — more buyers qualify compared to conventional loans.
Pair with a Rate Buydown
Combine your FHA loan with a 2-1 or permanent buydown to start with an even lower monthly payment.
Easy to Refinance Later
FHA Streamline refinance is one of the most streamlined ways to lower your rate down the road.
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 us for current Oregon FHA loan limits
- ✓MIP: 1.75% upfront + annual premium paid monthly (cancels after 11 years with 10%+ down)
FHA Loan FAQ
How much do I need for a down payment?
With a 580+ credit score, just 3.5% down. With a score of 500–579, you'll need 10% down. The great news: your entire down payment can come from family gift funds — you don't have to have saved it yourself.
What is FHA mortgage insurance (MIP)?
FHA requires mortgage insurance: 1.75% upfront (typically rolled into the loan) plus a monthly premium. With 10%+ down, MIP cancels after 11 years. With less than 10% down, MIP remains for the life of the loan. We'll compare this to conventional PMI so you can choose the best path.
I have bad credit — can I still get approved?
FHA is specifically designed for buyers with less-than-perfect credit. A 580 score qualifies you for 3.5% down. For complex credit situations, manual underwriting options may be available. Let's review your scenario together.
Is FHA only for first-time buyers?
No — FHA is available to any buyer purchasing a primary residence, regardless of whether you've owned before. That said, it's especially popular with first-time buyers because of the low down payment and flexible guidelines.
Other Loan Programs
See If I Pre-Qualify for an FHA Loan →
Takes 2 minutes · No credit pull · No obligation