Average Down Payment for Portland, Oregon Home Buyers in 2022

Published:
September 7, 2022
Last updated:
September 7, 2022
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Ready for some mortgage math? We took the current median home price for the Portland, Oregon metro area and used home buyer survey data to determine the average down payment for Portland-area home buyers.

As of 2022, a typical buyer purchasing a median-priced house in this market would end up with a down payment of around $69,851.

But don’t be too discouraged by that number. While it represents the average down payment for the Portland area, some buyers get by with a much smaller investment. For instance, if you were to invest only 3% (the minimum for most conventional loans), you could bring your down payment to around $17,000 on a median-priced home.

A Typical Down Payment in Portland, as of Summer 2022

As a mortgage company that serves the entire Pacific Northwest, we closely monitor real estate trends in places like Portland, Oregon and Seattle, Washington. We keep an eye on relevant trends that home buyers and homeowners should know about, and report them here on our blog.

Today, we’ll take a look at the average or “typical” down payment for the Portland metro area, based on 2022 data.

It all starts with home prices. As of late summer 2022, the median home price for the Portland-Vancouver-Hillsboro metropolitan area was $582,093. That’s based on data provided by Zillow.

The median house value for this market rose by about 13% over the past year. That means home buyers are making larger down payments today (on average) than a year ago. After all, the down payment is directly related to the purchase price.

So, how much does a typical home buyer in Portland put down, percentage-wise?

A survey conducted by the National Association of Realtors found that the average down payment among all home buyers was 12%. That includes both first-time and repeat buyers. Making a 12% investment on a median-priced house ($582,093) in the Portland area would come to around $69,851 in 2022.

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But what if you can’t afford to make a down payment in the $60,000 – $70,000 range? Some home buyers don’t have that kind of money in the bank. Fortunately, you have options.

The 12% figure used in the earlier example is based on the average down payment identified in surveys. But the minimum investment required for a regular conventional loan is quite a bit lower than that — down to 3% in some cases.

A 3% down payment on a typical Portland-area home would come to around $17,462, as of summer 2022. Clearly, that’s a more manageable investment when compared to the 12% average down payment among all home buyers.

The point is, you don’t have to make the average down payment when buying a house in the Portland metro area. Some mortgage programs allow borrowers to put down 3% – 3.5%. And then there’s the VA loan program for military members and veterans, which allows them to finance up to 100% of the purchase price.

Also bear in mind that many mortgage programs available today allow for down payment gifts. This is when an approved third-party, like a family member or close friend, gives you money to put toward your upfront home-buying expenses.

Avoiding Mortgage Insurance With 20% Down

The 20% down payment is another common investment amount among Portland-area home buyers, and for good reason. Borrowers who can afford to put 20% down are “rewarded” by not having to pay for private mortgage insurance (PMI).

Mortgage buyers like Fannie Mae and Freddie Mac often require mortgage insurance on the loans they purchase from lenders. For instance, Freddie Mac’s website states that private mortgage insurance “is required on each conventional Mortgage Freddie Mac purchases that has a loan-to-value (LTV) ratio of more than 80%.”

If you make a down payment of 20% or more when buying a home in Portland, you’ll keep the LTV at or below 80%. So you wouldn’t be required to pay mortgage insurance. There are other ways to avoid PMI, such as using a “piggyback” loan strategy. But they’re the subject of another article.

In 2022, a 20% down payment for a typical house in the Portland area would equal $116,418.

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Summary of Key Points in This Article

  • As of summer 2022, the average down payment for a median-priced home in the Portland, Oregon metro area was around $69,851.
  • That’s if you were to put 12% down, which is the average investment among first-time and repeat home buyers nationwide.
  • Borrowers who put down 3% on a median-priced home (which is the minimum for some conventional loans) would end up investing around $17,462 in 2022.
  • A 20% down payment in the Portland metro area would come to $116,418.
  • Borrowers with limited funds in the bank could benefit from using gift money provided by an approved third-party.

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