Yes, some home buyers in Oregon can purchase with less than 5% down. The most common paths are a 3% down conventional loan, a 3.5% down FHA loan, and 0% down VA financing for eligible military borrowers and veterans. The right choice depends on more than the down payment alone, including eligibility, mortgage insurance, and your total cash to close.
Gathering up a large down payment to put towards the purchase of a home in Oregon can be tough. But you don’t necessarily have to put up a 20% down payment to secure a mortgage. Here’s how you could buy a home in Oregon with less than 5% down.
Recent surveys have shown that many potential home buyers believe it’s not possible to purchase a house with a down payment below 5%. One particular study, published by Realtor.com, revealed the following:
“The report summarized that 39% of non-owners believe they need more than 20% for a down payment on a home, 26% believe they need to put down 15% to 20%, and 22% believe a down payment of 10% to 14% would work.”
The reality is that many home buyers are able to buy in Oregon with less than 5% down. This is a subject we’ve covered in the past. But it’s an important topic that apparently generates a lot of confusion. So we thought it was time to revisit this topic for people planning to buy a home in Oregon.
So, how can a person buy a home with less than 5% down? Several ways, actually.
One way to accomplish this is by using the FHA loan program, which has a relatively low investment requirement. Additionally, some conventional mortgage loans offer down payments as low as 3%. And if you happen to be a military member or veteran, you could be eligible for VA mortgage financing that eliminates the need for a down payment altogether.
For an FHA-insured home loan, the down payment can be as low as 3.5% of the purchase price. So this is one option for buying a home in Oregon with less than 5% down.
Freddie Mac and Fannie Mae, the government-sponsored corporations that purchase home loans from lenders, will buy mortgages with a loan-to-value (LTV) ratio up to 97%. That limit is imposed by the Federal Housing Finance Agency. Conversely, this means that borrowers who use a conventional loan to buy a house in Oregon could potentially make a down payment as low as 3%. This is another viable option for buying a home in Oregon with less than 5% down.
Most military members and veterans in Oregon are eligible for VA mortgage financing. The money still comes from a lender, just like any other type of mortgage loan. But the loan gets guaranteed by the Department of Veterans Affairs. Because of the government backing, borrowers can avoid a down payment altogether.
These are just three of the most common ways a person could buy a home in Oregon with less than 5% down. There are other mortgage financing strategies as well, and some of them offer a lot of flexibility when it comes to the upfront investment.
Today’s mortgage industry is more flexible than most people realize. This is especially true when it comes to minimum down payments. And this kind of flexibility is important, when you consider the fact that home prices in Oregon have changed over time.
According to the real estate information company Zillow, the typical home value for Oregon was $504,432 as of June 30, 2026, down 0.5% year over year. Higher housing costs can be a challenge for future home buyers. But there are a lot of financing options available these days, and some of them are fairly flexible when it comes to the upfront, out-of-pocket costs. That’s why it’s important to explore your options with a knowledgeable mortgage professional.
Sammamish Mortgage can help. We serve clients across Washington, Idaho, Colorado, Oregon, and California. Since 1992, we’ve been providing several mortgage programs and products with flexible qualification criteria to borrowers across the Pacific Northwest. Visit our website to get an instant rate quote or to use our online mortgage calculator. Or, reach out to us if you are ready to get pre-approved for a mortgage.
Yes. Some conventional mortgage programs allow Oregon home buyers to purchase with as little as 3% down through a 97% loan-to-value option.
Yes. Common low-down-payment options include a 3% down conventional loan, a 3.5% down FHA loan, and 0% down VA financing for eligible military borrowers and veterans.
No. A 20% down payment is not required for many buyers. Some Oregon borrowers may qualify for financing with 3%, 3.5%, or even 0% down, depending on the loan program and eligibility.
An FHA-insured mortgage can require as little as 3.5% of the purchase price as a down payment.
The better fit depends on more than the down payment alone. Buyers should compare eligibility, mortgage insurance, and total cash to close when choosing between FHA and conventional financing.
Eligible military members and veterans may be able to use VA financing with 0% down. The loan is made by a lender and guaranteed by the Department of Veterans Affairs.
Possibly yes. A lower down payment does not eliminate all upfront expenses, and total cash to close is still an important part of comparing loan options.
A low down payment does not always mean the lowest upfront cost. Buyers should look at the full cash needed to close, along with eligibility rules and mortgage insurance, before choosing a loan.
Yes. Low-down-payment conventional and FHA loans can make homeownership possible for buyers who have not saved a large down payment, and eligible veterans may also have access to 0% down VA financing.
Oregon home prices remain elevated. Zillow reported a typical home value of $504,432 in Oregon as of June 30, 2026, which can make flexible low-down-payment financing especially important for some buyers.
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