What are the eligibility criteria for FHA loans in Oregon?

@berta  FHA loans, which are insured by the Federal Housing Administration, are popular a**** first-time homebuyers and borrowers with lower credit scores or smaller down payments. Here are the general eligibility criteria for FHA loans in Oregon:

1. Minimum Credit Score: While FHA loans are known for being accessible to borrowers with lower credit scores, most lenders require a minimum credit score of 580 to qualify for the 3.5% down payment option. Borrowers with credit scores between 500 and 579 may still qualify, but they will need to make a larger down payment of at least 10%.
2. Down Payment: FHA loans typically require a minimum down payment of 3.5% of the purchase price. The down payment can come from the borrower's savings, a gift from a family member, or a down payment assistance program.
3. Debt-to-Income Ratio: Borrowers are required to have a maximum debt-to-income (DTI) ratio of 43%. This means that your total monthly debt payments (including the mortgage payment) cannot exceed 43% of your gross monthly income.
4. Steady Income and Employment: Lenders will evaluate your employment history and income stability. While there is no specific length of time you must have been employed, lenders typically prefer to see a stable employment history or consistent income for at least two years.
5. Residency and Legal Status: You must be a legal resident of the United States and have a valid Social Security number or Employment Authorization Document (EAD) to be eligible for an FHA loan.
6. Property Requirements: The property you intend to purchase must meet certain FHA requirements for safety, soundness, and security. This includes a home appraisal conducted by an FHA-approved appraiser to assess the property's value and condition.
7. Mortgage Insurance Premiums (MIP): FHA loans require both an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP). The UFMIP can be financed into the loan amount, while the MIP is paid as part of your monthly mortgage payment.

It's important to note that these are general eligibility criteria, and specific requirements may vary depending on the lender and other factors. Additionally, FHA loan limits may apply, which can vary by county in Oregon. Prospective borrowers should consult with a mortgage lender experienced in FHA loans to understand their eligibility and explore their options.