Financing in Portland>Question Details

Blazerz44308, Home Buyer in Portland, OR

FHA Backed Lender Advice in the Portland Area?

Asked by Blazerz44308, Portland, OR Thu Aug 9, 2012

Looking to purchase my first home. I have a steady job, however I just graduated from college, so it could be a while before I can afford to put 20% down on a home. Because of this, I am more than likely going to go through an FHA backed loan. Has anyone else gone the FHA route, and any recommendations on local Portland lenders who work with the FHA?

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Shane Milne’s answer
It's a common misconception that conforming, or conventional financing, requires a 20% down payment. However if you have decent credit scores (660 or above) then most lenders out there will extend you conventional financing with less than 20% down ... even as little as 3% down (which is .5% less of a down payment than FHA requires).

Lenders are able to do this because you can take out an insurance policy on the mortgage, called private mortgage insurance (PMI for short), which protects mortgage lenders on "higher risk" mortgages in case of a payment default, and thus makes lenders comfortable to offer conventional financing with less than a 20% down payment.

PMI isn't free (just like any other insurance policy), and there are various ways to pay for the PMI premium, however the two most common ways to pay for the PMI premium is to pay it on a monthly basis (on top of the principal/interest/property taxes/homeowners insurance payment you make) or you can pay a 1 time premium, and never have to pay the monthly amount. The 1 time premium amount is usually the equivalent to around 3-4 years of paying the monthly mortgage insurance, so you would want to go over the numbers to determine which option is better for you.

PMI rates, as well as interest rates on conventional mortgages, are much more credit score sensitive than FHA loans are. So for someone who has a low credit score, and not much of a down payment, FHA usually ends up being the better option between the two.

I'd recommend you speak with a loan officer to determine what all of your options are, and at that point you'll be able to realize if FHA is your best financing option or not.

Shane Milne | NMLS #81195 | Lending in all 50 states
1 vote Thank Flag Link Fri Aug 10, 2012
Here's a list of FHA Approved list of lenders in Portland that can help with your loan search
http://www.homebuyerwise.com/fha-approved-lenders/Portland-O…
You can also try searching on homebuyerwise.com for FHA lenders all over Oregon
0 votes Thank Flag Link Mon Jul 20, 2015
I can recommend Shane to help you with your loan:
You can see that he knows his "stuff"
0 votes Thank Flag Link Fri Aug 10, 2012
ERIC NEWMAN-Senior Mortgage Banker/Pacific Residential Mortgage, LLC/4949 Meadows Road, Suite 150,Lake Oswego, OR 97035
(503) 698-5801 Direct
(503) 699-LOAN (5626)
(503) 716-4604 Fax,

Chris Jordan -Mortgage Banker /Summit Mortgage
Phone: 503.970.1286
Fax: 503.223.6192,

Jonathan Kennedy, MBA-Mortgage Loan Consultant/Red Hills Mortgage
A division of Pinnacle Capital Mortgage Corp
Direct Line: 503-705-7176
1355 NW 13th Ave Portland OR 97209

Eric M. Young, MBA-Home Mortgage Consultant/Wells Fargo
10121 SE Sunnyside Rd. Ste. 145
Clackamas, OR 97015
(503) 654-9171 x103 Tel.
(503) 654-9032 Fax

Good luck. And let me know in case u'd use one of them.
0 votes Thank Flag Link Fri Aug 10, 2012
You only need a 3.5% down payment and you can get the seller to help you with up to 6% of pre paids and closing costs. Most sellers with the activity today are not wanting to reduce the price of the house that much but you can increase the price and basically borrow the money back. There is also a 203K loan that you can borrow up to $30,000 that you can remodel with no structural repairs and you can buy a new kitchen or baths and appliances or windows, paint, insulation, carpet and a new roof, so it gives you many more options and you still only need 3.5% down. The house has to appraise for the increased value and you have 6 months after you close to complete the work so the appraiser can come back and approve the final job. Send me an email if you need a lender that can help you get pre approved and not pre qualified for a loan in 5 days. You need this with all the sale fails when the lender turns you down 5 days before closing because the underwriter does not like what the mortgage broker used for income justification. It is better when there are two offers that you have your loan guaranteed. Let me know how I can help you?
Tom Inglesby, Broker
RE/MAX Equity Group
0 votes Thank Flag Link Thu Aug 9, 2012
Hi there....

FHA backs about 40% of all loans originated these days, so you are not alone. Give Brandon Parmelee at Chase in Lake Oswego a call. He'd be happy to talk to you. We work together quite a bit, so I can tell you that he is very good at what he does.

(503) 413-9217

And if you need any assistance on the real estate end, please do not hesitate to get in touch with me as well. Brandon and I make a great team.

Best,

Wayne Olson, REALTOR
Windermere Cronin & Caplan Realty Group, Inc.
Mobile: (503) 389-3025
http://wayneolsonhomes.com
0 votes Thank Flag Link Thu Aug 9, 2012
Most lenders will be able to help you with an FHA Loan. I could surely recommend two or three to you. FHA only requires 3.5% down and you can usually working in some or all of your closing costs into the offer and loan so that you don't have to have 7% in your pocket to make the deal happen. You will need an Earnest Money deposit on top of the 3.5% down as well. Feel free to contact me directly and I can give you more details on contact information for lenders.
503-819-HOME (4663)
0 votes Thank Flag Link Thu Aug 9, 2012
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