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 Oregon's financial appeal is its lack of sales tax, although the state does have a relatively high personal income tax. For the most part, Oregon housing tends to be on the more expensive side , especially in the Portland area. If you're looking to move to Oregon, use our Oregon mortgage calculator to make sure the home you want works within your budget.
Mortgage Options in Oregon
Both future and current Oregon residents can obtain one of three types of loans.
- Oregon conventional mortgage: Housing costs tend to be higher in Oregon, so most people 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 a home 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 to everyone. Oregon also offers assistance to individuals and families looking to buy their first home.
First-Time Homebuyer Programs 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!).
Note that OHCS does not originate or arrange any of these loans. Instead, it uses 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, multiple local partners 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. Make sure to account for the loan type you intend to take and any down payment or interest rate assistance you expect to receive!
