Bend Mortgage Brokers
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(541) 972-8616
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FHA Loans, Low Down Payment, Flexible Approval

What is an FHA loan? It is a home loan insured by the Federal Housing Administration, and that government backing is what lets lenders offer a low down payment and work with lower credit than a conventional loan usually allows. Whether you call it an FHA loan, an FHA home loan, an FHA house loan, an FHA mortgage, or an FHA home mortgage, it is the same program, and it is one of the most flexible ways to buy a home. Despite what you may have heard, FHA loans are not just for bad credit. First-time home buyers use them, and so do plenty of experienced buyers, because FHA is simply the right fit for a lot of people. And because we do not pile on the extra requirements many lenders add, FHA home loans that get turned down elsewhere often work just fine with us. Here is how FHA loans work, what it takes to qualify, and the situations we handle every day, whether you are buying your first home, using FHA again, or refinancing the one you have.

Manufactured and mobile home loans: as FHA manufactured and mobile home lenders, we finance single-wide, double-wide, multi-wide, and modular homes built 1976 or newer, all the time.

FHA Loan Requirements and Fast Facts

  • Low down payment. One of the lowest down payment requirements of any loan, and gift funds or down payment assistance can help cover it.
  • Flexible credit. FHA works with lower credit scores than most loans, and we do not add extra credit hurdles on top of FHA’s rules.
  • Flexible income. Variable, commission, bonus, overtime, self-employed, and 1099 income all work, often on just a 12 month average.
  • Property types. 1 to 4 unit homes you will live in, including duplexes, small multi-unit properties, and FHA-approved condos.
  • Manufactured and mobile home loans. We are FHA manufactured and mobile home lenders for single-wide, double-wide, multi-wide, and modular homes built 1976 or newer.
  • FHA 203k renovation loans. Roll repairs and remodeling into the loan, a limited FHA 203k for smaller projects up to a 70,000 budget, or a full 203k for bigger jobs.
  • First-time home buyers welcome. FHA is one of the most common first-time home buyer mortgages, but you do not have to be a first-timer, and you can use an FHA loan more than once.
  • FHA loan limits vary by county. Licensed in Oregon, Washington, and Colorado, we handle FHA loan requirements, qualifications, and limits in all three.
Income that changes month to month? We can average your last 12 months of variable, commission, bonus, or overtime income, and it does not have to be from the same employer. If a lender told you that you need two years at one job, that was their overlay, not an FHA rule.

One of the first questions buyers ask is FHA versus conventional, and people search it a dozen ways, FHA loan vs conventional loan, FHA loans vs conventional, FHA vs conventional financing, home loans, or mortgages. The honest answer is the same: for a good number of people FHA is genuinely the better move, not a fallback. A lot of lenders, especially banks, do not even offer FHA, so make sure you are actually being given the choice instead of being pushed to conventional by default. We also weigh FHA against USDA and VA where they fit. Tell us your numbers and we put them side by side and show you the honest winner.

Buy a duplex and let it pay you back. An FHA duplex loan lets you buy a 2 to 4 unit property, live in one unit, and rent the others, all on FHA’s low down payment.
Short on the down payment? FHA already keeps it low, you can use gift funds from family, and through our Oregon Housing partnership we can look at down payment assistance, including no-down-payment paths for qualified buyers.

Tell Us Your FHA Situation

Every FHA scenario is a little different. Give us the basics, your credit, your income, and the home you are after, and we will tell you honestly what is possible. No pressure, no obligation, just a straight answer.

Call or text us directly: 541-972-8616, or email us at info@bendmortgagebrokers.com

FHA vs Conventional, and When FHA Wins

One of the most common questions we get is FHA versus conventional, whether people phrase it as FHA loan vs conventional loan, FHA vs conventional financing, or FHA vs conventional home loans. The honest answer is that it depends on your numbers, but FHA is the right fit for a lot more buyers than people assume. FHA tends to be more forgiving on credit and on the income it will count, and its mortgage insurance is based on your down payment rather than your credit score, which can help buyers whose credit is still rebuilding. Conventional can win in certain spots, especially with a larger down payment and strong credit, and there are times USDA or VA is the better call instead. The mistake is assuming FHA is the lesser option, or worse, never being offered it because a lender does not do FHA. We run them side by side on your real situation and tell you which one actually comes out ahead.

Why Buyers Work With Us on Their FHA Loan

Here is something worth understanding: FHA is a government program, but the FHA does not lend the money. It insures the loan and sets the rules, and the actual mortgage comes from a lender. What most people do not realize is that many lenders add their own extra requirements on top of FHA’s rules, called overlays, things like demanding two years at the same job or a higher credit score than FHA actually asks for. We do not. If FHA allows it, we will do it and work to get you into a home, and we do not tighten our guidelines beyond what FHA requires. We run credit on every file, and on the rare one the automated system trips over, often a misreported-credit situation, we can hand-underwrite it when many lenders will not. We close FHA mortgages that other lenders turn away, and whether it is a purchase or an FHA mortgage loan to refinance, you get no extra overlays from us. And because some lenders, especially banks, do not even offer FHA at all, a lot of buyers who should be using it get pushed toward conventional or told no. FHA is not a consolation prize or a bad-credit-only loan. For a lot of people it is simply the right move, and we will tell you straight where you fit.

FHA is not the backup plan. For a lot of buyers it beats conventional outright, so do not assume it is second choice. We will show you the side-by-side on your real numbers.

FHA Loan Questions, Answered

What is an FHA loan?
An FHA loan, also called an FHA home loan or FHA mortgage, is a home loan insured by the Federal Housing Administration. That government backing is what lets lenders offer a low down payment and work with lower credit than a conventional loan usually allows, which is why FHA is one of the most popular ways to buy a home. You can buy with it, and you can refinance with it later. Tell us what you are trying to do and we will tell you whether FHA is your best fit.
Can I get an FHA loan with a low or bad credit score?
FHA is built for buyers who do not have perfect credit, and it works with lower credit scores than most other loans allow. Just as important, we do not add extra requirements on top of what FHA asks for. If another lender told you your score was too low, or turned you down, that was often their own overlay, not an FHA rule. Older collections, charge-offs, and past credit bumps are usually more workable than people expect. Tell us your situation and we will look at it with you.
What are the requirements for an FHA loan?
The requirements for an FHA loan, sometimes called the qualifications or criteria, come down to a few things: a manageable down payment, a credit history FHA can work with, your debt compared to your income, and a home you will live in as your primary residence. FHA allows lower credit and a smaller down payment than most programs, and it is flexible on the income it will count, including student loan payments, which we can often base on the amount reported on your credit. Whether you are looking at FHA loan requirements in Oregon, Washington, or Colorado, the federal rules are the same and we are licensed in all three. Tell us where you are starting from and we will walk you through what you need.
FHA vs conventional, which one is better?
It depends on your situation, and for a good number of buyers FHA is genuinely the better move, not a fallback. However you phrase it, FHA loan vs conventional loan, FHA vs conventional financing, or FHA vs conventional home loans, the real answer is in your numbers. One thing to know: some lenders, especially banks, do not even offer FHA, so make sure you are actually being given the choice. We put FHA and conventional side by side, weigh USDA and VA where they fit, and show you the honest winner. Tell us what you are looking at and we will lay it out.
Is an FHA loan only for first-time home buyers?
No. FHA is one of the most common first-time home buyer mortgages, so a lot of people assume it is only for first-timers, but it is not. The FHA in the name just stands for Federal Housing Administration. First-time buyer or not, you can use an FHA loan, and you can use it more than once. Tell us where you are in the process and we will point you the right way.
Can I get an FHA loan with variable, commission, bonus, or overtime income?
Yes, and this is a spot where we stand out. FHA lets us average your last 12 months of variable, commission, bonus, or overtime income, and it does not have to be from the same employer the whole time. If a lender told you that you needed two years of history at one job, that was an overlay they added, not an FHA rule. So even if your income moves around, or you recently switched to a new variable-income job, there is usually a path. Tell us how you are paid and we will show you how it qualifies.
Can I buy a house with a new job or a gap in employment?
Usually yes. You do not need two years at the same job to get an FHA loan, even with income that varies, no matter what another lender may have told you. A recent job change, a new position, or a gap with a reasonable explanation are all things we work with regularly. Tell us your work history and we will tell you where you stand.
Can I get an FHA loan if I am self-employed or 1099?
Yes. Self-employed and 1099 income works for an FHA loan, and we are comfortable with the documentation that comes with it. We look at your real income picture rather than forcing it into a box, which helps a lot of self-employed buyers and people with newer or unusual income. Tell us how your income is set up and we will find the right structure.
Can I use a cosigner or co-borrower on an FHA loan?
Yes. You can add a cosigner or a co-borrower to an FHA loan, including a non-occupant co-borrower, someone who will not live in the home, like a parent helping a child qualify. It is a common way to make the numbers work when your income does not fully show on paper yet, or you are self-employed or in a new job. Tell us who would be on the loan with you and we will structure it.
Can I get an FHA loan during or after bankruptcy?
Often yes, and sooner than most people think. With a Chapter 13, we can finance an FHA home purchase while you are still in the bankruptcy, once you have your trustee’s approval and about 12 months of on-time payments, with no separate seasoning wait after that. A Chapter 7 is generally two years from the discharge date. Tell us what happened and when, and we will give you a straight timeline.
Can I have two FHA loans, or use FHA more than once?
Yes. You can use an FHA loan more than once, and you can even end up with two FHA loans at the same time in the right situation, usually tied to a move. FHA does have rules about moving far enough away and how rental income from the home you are leaving is counted, so it is not a way to stack up rentals nearby. Tell us about the move you are planning and we will see if it works.
Can I use an FHA loan on a manufactured or mobile home?
Yes, we do these all the time. As FHA manufactured and mobile home lenders, we finance manufactured, mobile, and modular homes, single-wide, double-wide, and multi-wide, as long as the home was built in 1976 or newer. Whether it is an FHA loan for a mobile home or a modular home loan, tell us the year, the size, and where it sits, and we will tell you what is possible.
Can I use an FHA 203k loan to renovate a home?
Yes, and it is one of the more useful FHA options. An FHA 203k loan, also called an FHA renovation loan, lets you roll the cost of repairs and remodeling into your loan, so you can buy a home that needs work, or refinance and fix up the one you have, without a separate loan. There is a limited 203k for smaller projects, with a renovation budget up to 70,000, and a full 203k for bigger jobs. Tell us the home and the work it needs and we will size it up.
Can I buy a condo with an FHA loan?
Yes, with one wrinkle. An FHA loan can finance a condo, but the condo project usually needs to be on the FHA-approved list, or it needs a single-unit approval, which we can often help pursue. So the question is less about you and more about the building. Tell us the condo you are looking at and we will check whether it works for FHA financing.
Can I buy a duplex or 2 to 4 unit property with an FHA loan?
Yes. With an FHA loan you can buy a 2 to 4 unit property, a duplex, triplex, or fourplex, live in one unit, and rent the others, which is a great way into owning real estate with a low down payment. An FHA duplex loan uses the same low down payment as a single-family home. One thing to know on triplexes and fourplexes: FHA wants 75 percent of the fair-market rent across the units to cover the mortgage payment, and at today’s rates that test can be tough to pass. Tell us the property and we will run it and tell you honestly if it pencils.
What does an FHA loan cost, and how does FHA mortgage insurance work?
FHA has an upfront mortgage insurance premium of 1.75 percent of your loan, which is added to the loan at closing, plus an annual mortgage insurance amount paid monthly, and the usual closing costs. The annual mortgage insurance is based on your down payment, not your credit score, which is a real advantage. With less than 10 percent down it stays for the life of the loan, and with 10 percent or more down it falls off after 11 years. Unlike conventional mortgage insurance, you cannot challenge it off early, so when it makes sense we look at refinancing to remove it. Tell us your scenario and we will show you the real cost.
How are FHA loan rates set?
Your FHA loan rate depends on the market, your credit, your down payment, the loan term, and whether you add something like a temporary buydown, so the honest answer is that the rate is specific to you. A common myth is that FHA means a worse rate because it is for lower credit. That is not how it works, FHA mortgage pricing follows its own rules. Rather than quote a number that changes daily, tell us your situation and we will walk you through what actually drives your FHA loan rate.
Can I get down payment help or use gift funds on an FHA loan?
Yes. FHA already has one of the lowest down payment requirements out there, and on top of that you can use gift funds from family or a close friend toward it. We also have a partnership with Oregon Housing for down payment assistance, including no-down-payment paths for qualified buyers. Tell us what you have available for a down payment and we will find the best fit.
Can I refinance my FHA loan?
Yes. The two that usually make the most sense right now are a full FHA rate-and-term refinance and an FHA cash-out refinance to tap your equity. There is also an FHA streamline refinance, but with the current rules on loan amount and costs it rarely pencils out unless rates drop a lot, so we will be honest about whether it is worth it. Tell us your current loan and what you are trying to do and we will show you the numbers.
Are FHA loans assumable?
They are, but be careful with it. We do not run the assumption ourselves, the loan servicer does, and the practical catch is that if an existing FHA loan has a low enough rate to be worth assuming, you usually need a large amount of cash to cover the gap between the current value and the price, plus closing costs. For most buyers that makes a clean purchase the better move. Tell us what you are weighing and we will give you the honest math.
Are FHA loans bad for sellers?
No, and we love doing them. An FHA appraisal is basically the same as any other, with the main extra being that chipping paint needs to be dealt with, which is rarely a big deal. Sellers can also contribute up to 6 percent toward a buyer’s closing costs on an FHA loan. It is very rare to see a home that can only go conventional, so do not let anyone talk you out of an FHA offer. Tell us about the property and we will make it work.
What is a 2-1 or 3-2-1 buydown?
A temporary buydown, like a 2-1 or 3-2-1 buydown, lowers your interest rate for the first couple of years and then steps it back up to the normal rate, which lowers your payment early on. This kind of interest rate buydown can be paid by the seller or by you, and it is a great tool when you expect your income to rise soon, like a coming promotion or someone returning from leave. Tell us your situation and we will tell you whether a buydown is worth it for you.
Can I buy a recently flipped house with an FHA loan?
You can, but there is a little-known FHA timing rule to watch. For most flips there has to be at least 90 days between the seller’s last purchase and your FHA purchase contract, and if the price jumped a lot from what the seller paid, that window can extend to 180 days. If you are looking at a recently flipped home, tell us the dates and we will make sure it works before you are too far in.

Every FHA situation is a little different, and the fastest way to a real answer is to tell us yours. We will get you a full preapproval, not just a quick prequalification, so your offer is taken seriously, and it holds for about four months while you shop. No pressure, no obligation, just a straight read on what is possible. Use the form below or give us a call.

FHA home loans in Oregon, Washington & Colorado.

Have Questions About FHA Loans?

Whether you’re just getting started or already deep in the process, use the form below and we’ll figure out the best path forward together.

Phone
(541) 972-8616
Fax
(541) 972-8621
Location
150 NE Hawthorne Ave. STE 204 Bend, OR 97701

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