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In a typical year, about 4,000 to 5,000 people use a VA loan to buy a home in the state of Oregon. That’s based on data provided by the U.S. Department of Veterans Affairs.
But if more veterans understood the full VA home loan benefits in Oregon, those usage numbers would probably be a lot higher. This program allows you to buy a home with no down payment whatsoever, among other advantages.
In this guide, we’ll explain how to qualify for a VA home loan in Oregon, so you can enjoy some of these unique benefits.
Department of Veterans Affairs (VA) loans work just like other mortgage products, but with one key distinction. Through this program, the federal government gives mortgage lenders in Oregon an added layer of protection from loan defaults.
The short version: If a homeowner with a VA loan cannot repay their debt for some reason, the VA will pay the lender a guaranteed amount to cover their losses.
This guarantee benefits borrowers as well, and in a big way.
If you’re looking for zero down payment home loans in Oregon, consider a VA loan. If you use a VA loan to buy a home in Oregon, you could finance up to 100% of the property’s purchase price. That means you can skip the down payment entirely.
In contrast, conventional and FHA loans usually require at least 3% to 3.5% down, and sometimes a lot more.
Borrowers seeking a VA loan in Oregon can apply through a regular mortgage lender in the private sector, as with any other type of home loan. The lender provides the actual funding, while the VA provides the guarantee.
So, what does it take to actually qualify for a VA loan in Oregon?
The good news is that it’s one of the easiest types of mortgage loans to qualify for. And we’ve covered the main reason for this already.
The government guarantee lowers risk for lenders, allowing them to be more flexible with their qualification criteria. You don’t need perfect credit to qualify for a VA loan. You don’t even have to make a down payment, unless you want to.
But you do need to check a few boxes to qualify for a VA-backed mortgage in Oregon.
Here are some of the things you’ll probably need:
The VA loan program is open to most military members and veterans in Oregon who have an honorable service record covering a specific period of time.
Before you can use a VA loan to buy a home in Oregon, you’ll need to obtain your Certificate of Eligibility (COE) from the Department of Veterans Affairs. This shows mortgage lenders that you are eligible for this program, based on the above guidelines.
You can obtain your COE directly through the VA.gov website, or have your mortgage lender do it for you. Lenders can often obtain this document electronically to expedite the process.
You’ll need to have sufficient income to manage the monthly payments associated with the loan, along with all other recurring debts. Your lender will verify your income by using bank statements, pay stubs, and possibly a statement from your employer.
When you apply for a VA loan in Oregon, your lender will also determine how much debt you currently have—and how much you will have with the addition of a mortgage.
They do this for several reasons, but mainly to ensure that you aren’t taking on too much debt. It’s a required step for all VA-backed mortgage loans, and for good reason.
The Department of Veterans Affairs handbook states that the “acceptable debt-to-income ratio for a VA loan is 41%” for most borrowers. But there are exceptions to this rule, especially for well-qualified borrowers with a solid credit history.
As a borrower, you have to qualify for a VA loan in order to buy a house through this program.
But the property itself also has to meet certain qualifications. The Department of Veterans Affairs refers to these as minimum property VA loan requirements in Oregon, or MPRs.
When you use a VA loan to buy a home in Oregon, the lender will have it appraised to make sure it meets these MPRs. This is required for all government-backed mortgages.
If the house is in decent overall condition and poses no dangers to the occupant, it will likely qualify for VA loan financing. But if it needs serious work just to become livable, it probably won’t meet the minimum standards for this program.
According to the National Association of Home Builders, the median age of owner-occupied homes in the state of Oregon is 41 to 50 years. Some neighborhoods offer newer construction. But overall, the state has a lot of older homes.
Some of those properties have been well maintained and possibly even renovated. Others have been neglected and might pose health and safety issues for the owner.
If you want to qualify for a VA loan and increase your chance for home buying success, try to focus on properties that are move-in ready. The home doesn’t have to be perfect. But it does have to be livable.
Once you’re familiar with how to qualify for a VA home loan in Oregon, you can apply for financing to buy your next home.
Applying for a VA loan can be straightforward if you follow key steps for pre-approval, gather essential documentation, and set timeline expectations. Here’s a guide to simplify the process:
By following these steps, you’ll be well-prepared for a smoother VA loan application experience. To expedite the process, stay in close communication with your lender and promptly respond to any additional requests for information.
Sammamish Mortgage specializes in VA loans and serves the entire state of Oregon. We can help you obtain the necessary paperwork to get the ball rolling. Visit our website to get an instant rate quote or contact our staff with your mortgage-related questions, or to begin the process.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.