Mortgage in Oregon
With a vibrant economy, a burgeoning tech scene, and plenty of beautiful scenery, Oregon is a top destination for families and individuals. Part of the financial attraction to Oregon is its lack of sales tax, although it, unfortunately, has a relatively high personal income tax. For the most part, Oregon housing tends to be on the more expensive side , especially if you're looking to locate within the Portland area. Therefore, if you're looking to move to Oregon, use our Oregon mortgage calculator to ensure that the home you want will work within your budget.
Oregon Mortgage Calculator: What Mortgages Are Available?
Both future and current Oregon residents can obtain one of three types of loans.
- Oregon conventional mortgage: Housing costs tend to be more in Oregon. Therefore, most people have to opt for a traditional loan because the property prices exceed the other programs' limits. These loans usually require at least 20% down and a credit score in the 700s. If you find one under the conforming loan limit (about $550k), you can get a loan with as little as 3% down and a credit score of 620.
- Oregon FHA mortgage: If you find a home under the limits, an FHA loan is a great way to buy a home. It requires as little as 3.5% down and has a minimum credit score of 580. If you have a score between 500 and 579, you can still obtain one of these loans. In this case, 10% down is necessary.
- Oregon VA mortgage: Military members, both present and past, can access a VA-backed loan with 0% down and no private mortgage insurance. You'll need a credit score of 660 or higher.
The above loans are available for everyone. Oregon also offers assistance to individuals and families looking to buy their first home.
First-Time Homebuyers in Oregon
The Oregon Housing and Community Services division administers two programs that you should know.
Oregon Bond Residential Loan Program
The Oregon Bond Residential Loan program offers first-time homebuyers two choices:
- Cash Advantage: This program provides a competitive interest rate plus cash equal to 3% of the loan amount. Borrowers use the money to pay for their closing costs.
- Rate Advantage: This program offers a more competitive interest rate (often 0.5% or more below market value!).
It is worth noting that OHCS does not originate or arrange any of these loans. They use funds from bonds to secure these lower rates for eligible buyers.
Eligibility Criteria: There are income and purchase price limits.
Oregon does not have a cohesive statewide down payment assistance program. Instead, they have multiple local partners that offer up to $15,000 in down payment and closing cost assistance.
Eligibility Criteria: Buyers must take a homebuyer education course. Purchase price and income limits apply.
Oregon Mortgage Calculator: See What Your Home Will Cost
Use our Oregon mortgage calculator to see how much your home will cost if you move. Please make sure to account for the loan type you intend to take and any down payment/interest rate assistance you can expect to receive!