Back to Blog

How Much Can I Borrow for a Mortgage in Oregon?

Sammamish Mortgage
Published:
June 30, 2017
Last updated:
April 5, 2021
How Much Can I Borrow for a Mortgage in Oregon
In This Article

This is part of an ongoing blog series in which we answer common questions among Oregon home buyers. Today’s question is: How much can I borrow for a mortgage loan in Oregon? This article will help answer that question.

Are you thinking of buying a home in Oregon? If so, you’ll want to do some homework on how much you will be able to borrow to finance such a big purchase.

The amount of money you can borrow will largely depend on your income. But there are other factors that play into this equation as well. Here are some concepts you should understand when shopping for a mortgage loan in Oregon.

How Much Can You Borrow for a Mortgage Loan?

Your ability to repay your home loan is a primary consideration for loan approval. Above all else, this will determine how much you can borrow for a mortgage in Oregon.

Banks and mortgage lenders use various tools to assess your ability to repay the loan amount, and we’ll review those factors below. For now, just know that this is one of the overriding qualification criteria that determines how much you can borrow.

Related: Average closing costs in Oregon

Your Debts Play a Role as Well

Your debt and income levels are another important consideration. And there’s a name for this. It is called the debt-to-income ratio, or DTI. As you might have guessed, this is a numerical comparison between the amount of money you earn each month and the amount you spend on your various debts.

While these numbers aren’t necessarily written in stone, mortgage companies prefer to see a debt-to-income ratio below 50%. The lower the better, in terms of qualifying for a home.

If you have a manageable level of debt right now, you have a better chance of getting approved for financing. This is another key factor that can affect how much you are able to borrow for a mortgage loan in Oregon.

Live Oregon Mortgage Rates Apr, 16, Fri, 2021

Loan Limits in Oregon

Loan limits play a part here as well. Most of the major loan programs have limits associated with them, and these can affect the amount you’re able to borrow.

Here’s an overview of the limits for various mortgage programs in Oregon:

FHA: Federal Housing Administration home loans have limits that vary by county. In most Oregon counties, the 2021 limit for a single-family home purchase is $356,362. In more expensive areas — like those in and around Portland, Oregon — the limit can be as high as $517,500.

Conventional and VA: Conventional (i.e., non-government backed) mortgage loans have limits as well. In most states, these limits also vary by county, because they’re based on median home prices.

Conforming loan limits in Oregon is $548,250 for 2021, and that is for 1-unit homes in all counties.

As of 2021, veterans who wish to obtain a “jumbo loans” – which is a loan that exceeds the conforming loan limit – or veterans who live in higher-cost markets won’t be subject to the VA loan limit (or conforming loan limit) maximums anymore. That means members of the military can still get a no-down payment VA-backed loan in any county, regardless of the price of the home they intend to purchase.

Read: Which mortgage option is right for you?

Going Jumbo for a Larger Amount

Loan limits can affect how much you can borrow for a mortgage in Oregon, but they don’t necessarily restrict you to that amount. Borrowers who have sufficient income can qualify for a so-called jumbo loan that exceeds the limits mentioned above.

Jumbo loan amounts in Oregon can rise above $1 million in some cases, as long as the borrower has sufficient income to repay the loan. So here again, the ability to repay becomes a primary consideration.

Whether you are seeking a conventional, jumbo, or FHA loan, you must have the capacity to repay the amount you are borrowing.

Get an Instant Mortgage Rate Quote Today

Need a Mortgage in Oregon?

Are you looking to apply for a mortgage in Oregon? We can help. Sammamish Mortgage is a local mortgage company serving the broader Pacific Northwest region, including Washington state, Idaho, Colorado, and Oregon. We have been offering a wide variety of mortgage programs and products with flexible qualification criteria since 1992. Please contact us if you have any questions or are ready to apply for a home loan.

Other Blogs You May Like
Oregon Home Loan Requirements Easing With DTI Rule Change Oregon Home Loan Requirements Easing With DTI Rule Change
April 14, 2021

Summary: Home loan requirements in Oregon have been easing over the last couple of years, and some steps have been taking to relax some mortgage underwriting requirements. This article will go over how and why it may not be as…

Read more
Income Needed to Buy a Home in the Seattle Area, 2021 Income Needed to Buy a Home in the Seattle Area, 2021
April 14, 2021

The median price of homes in the Seattle metro area has gone up over the years, though they have slowed down over the past 12 months. But exactly what type of income do you need to be able to afford…

Read more
With Very Few Listings On The Market In Boise, Fall May Be The Time To House Hunt With Very Few Listings On The Market In Boise, Fall May Be The Time To House Hunt
April 13, 2021

As a matter of custom and tradition, autumn was never the high water mark for house shopping, though there are some benefits to doing so. Re-locators, generally, like to be in their new digs by the time school starts. As with so many things, however, the ebb and flow of real estate transactions look different in the year 2021.

Read more
Do You Need 20% Down In Colorado for a Home Purchase? Do You Need 20% Down In Colorado for a Home Purchase?
April 13, 2021

Folks may have told you not to purchase a home without 20% down in Colorado, but do you really need to invest that much money? Read this helpful article to discover your options and understand what they mean to you.

Read more
The Most Popular Cities In CO For Relocating To Get A Better Deal On A Home The Most Popular Cities In CO For Relocating To Get A Better Deal On A Home
April 13, 2021

Relocating to different cities in CO is often motivated by the cost of home prices. People don’t necessarily move out of their home town because they’re undesirable, but because they’re able to find better prices elsewhere.

Read more
Is Now a Good Time to Buy a Home in Portland, OR? Is Now a Good Time to Buy a Home in Portland, OR?
April 8, 2021

Summary: Is now a good time to buy a home in Portland, Oregon? It’s a question that many homebuyer hopefuls ask themselves, and for good reason. In this article, we’ll help you determine if 2020 is your year to jump…

Read more
Will New Homes Be Available For Purchase this Year? Will New Homes Be Available For Purchase this Year?
April 7, 2021

As the country works through the coronavirus pandemic and its effect on the economy, how will the real estate market fare? More specifically, will there be more new home construction this year and next? This article will attempt to answer that question.

Read more
Most Renters Are Paying Far More Than Their Landlord’s Mortgage Most Renters Are Paying Far More Than Their Landlord’s Mortgage
April 7, 2021

In the overwhelming majority of the 50 largest cities across the U.S., monthly rent is more than the mortgage payment for single-family homes. In several cases, much more.

Read more
Buying a Home is Cheaper Than Renting in Seattle Buying a Home is Cheaper Than Renting in Seattle
April 2, 2021

Summary: Does the sound of getting a mortgage in Seattle, WA sounds way out of your financial reach? The truth is, renting can be even more expensive than paying a mortgage. This article will show you why a mortgage may…

Read more
Buying A Home In A Golf Community Buying A Home In A Golf Community
April 2, 2021

Home sales in golf communities are strong like in the rest of the country.

Read more

Begin your home loan process today! Our mortgage advisors are standing by. Request a free personalized rate quote. (425) 401-8787