Conventional Loan Benefits in Oregon
PMI Cancels at 20%
Conventional PMI cancels automatically at 80% LTV — no lifetime mortgage insurance like FHA.
As Low as 3% Down
Conventional 97 programs allow 3% down for qualified buyers. Standard programs start at 5% down.
Higher Loan Limits
Conforming loan limits are higher than FHA limits in most Oregon counties — more flexibility on price.
Available Statewide
Conventional financing is available in every Oregon market — urban, suburban, rural, and coastal.
More Property Types
Second homes, investment properties, and condos that don't qualify for FHA can go conventional.
Flexible Terms
10, 15, 20, and 30-year terms — choose the structure that fits your monthly budget and goals.
Conventional Loan Requirements in Oregon
- ✓Credit Score: 620+ minimum; 740+ for best rates
- ✓Down Payment: 3% (Conventional 97), 5% standard; 20% avoids PMI
- ✓DTI: Up to 45–50% with strong compensating factors
- ✓Employment: 2-year history preferred; self-employed with 2 years of tax returns
- ✓Property: Primary residence, second home, or investment property
- ✓PMI: Required with less than 20% down; cancels automatically at 80% LTV
Conventional Loan FAQ
What is the minimum down payment for a conventional loan?
As little as 3% with a Conventional 97 program for first-time buyers. Standard programs typically require 5% down. Put 20% down and you skip PMI entirely.
What credit score do I need?
620 is the typical minimum, but rates improve significantly as your score rises. Borrowers with 740+ scores get the best pricing. I'll show you exactly what you qualify for.
How does conventional compare to FHA in Oregon?
Conventional is generally better for buyers with 660+ scores who plan to build equity and want PMI to cancel. FHA is better for buyers with lower scores or who need more flexible guidelines. I'll run both scenarios and show you which saves more over your timeline.
Can I use conventional to buy in rural Oregon?
Yes — conventional financing is available everywhere in Oregon. Rural buyers may also want to explore USDA loans, which offer 100% financing for eligible areas. I'll help you determine which program makes the most sense.
Other Loan Programs
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