Buying a House in Oregon in 2024: Basic Requirements

Published:
December 6, 2018
Last updated:
October 12, 2023
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Are you contemplating a home purchase in Oregon? If so, read on to find out how to ensure that you get approved for a mortgage to buy a home in Oregon in 2024.

If buying an Oregon home is on your agenda this year, then you’ll probably need to finance it with a mortgage. If that’s the case, you’ll want to make sure you are eligible for a home loan to help fund this big purchase. So, what are the requirements to get a mortgage and buy a home in Oregon in 2024?

Basic Requirements to Buy a House in Oregon

Real estate markets across the state of Oregon have changed dramatically over the last few years, particularly where home prices are concerned. Additionally, we have seen some new mortgage products come onto the market that all home buyers should know about. With that in mind, here are five basic requirements you might need to buy a house in Oregon.

1. An understanding of current real estate market conditions.

According to the latest information reported by Zillow, the median home value in Oregon currently sits at $494,577. Over the past 12 months, home prices have decreased 1.9% since the same time last year, according to Zillow.

Home prices are anticipated to increase at a healthy pace over the next year. This will make homebuying more expensive, which is why you need to get your finances in order before making a move. 

Further, buying sooner rather than later can also help save you some money before prices continue to increase. Understanding these market changes is the first “requirement” to buying a house in Oregon.

2. Knowledge of current mortgage programs

FHA. Conventional. Fixed-rate. Adjustable. You have a lot of mortgage options to choose from when buying a home in Oregon. And there are pros and cons to every choice you make. That’s why it’s important to research the different mortgage loan programs in advance, before making any decisions.

We can help you with this process in two ways.

  • First, you could speak to one of our knowledgeable loan officers about mortgage financing options.
  • Secondly, we’ve put together a tutorial to help you understand the different home loans.

Live Oregon Mortgage

3. A down payment, unless you are military.

Depending on the type of loan you use, the down payment could be another requirement to buy a house in Oregon. We’ve written about this subject before, offering an overview of minimum down payment requirements.

Depending on what type of mortgage loan you use, you might be required to make a down payment of 3% or more. That’s for a high-ratio conventional home loan. The FHA mortgage program allows for a down payment of 3.5%. Military members and veterans in Oregon may be eligible for VA mortgage financing, which eliminates the need for a down payment entirely.

4. A decent credit score.

A recent report by a widely used mortgage software company showed that most closed loans went to borrowers with credit scores of 600 or above. That number is not written in stone. But it does give you some insight into current industry trends.

Credit scores are another important requirement to buy a house in Oregon. These three-digit numbers give lenders insight into how you have borrowed and repaid money in the past. They are computed based on information found within your credit reports.

Some mortgage programs are more flexible than others when it comes to credit score requirements. Please contact us if you have questions about the subject.

5. A manageable level of debt.

Debt-to-income ratios are another key requirement when buying a house in Oregon. As you might’ve guessed, these ratios compare the amount of money you earn to the amount you spend on your recurring debts.

As with credit scores, there is no single cutoff point or threshold requirement for Oregon home buyers. But some mortgage programs are more “forgiving” than others, when it comes to high debt levels. In some cases, borrowers can have a combined debt-to-income ratio as high as 50% and still qualify for a loan. Fannie Mae (one of the government-controlled corporations that buy loans from lenders) recently increased its debt limit from 45% to 50%.

Ready to Apply For a Mortgage?

If you are ready to buy a home and are in need of a mortgage, we can help you get the process started. Sammamish Mortgage has been helping borrowers across the Pacific Northwest since 1992, and we welcome the opportunity to help you as well. We offer many mortgage programs to borrowers in Washington, Oregon, Idaho, and Colorado. Give us a call today to get your mortgage-related questions answered!

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