How Much House Can I Afford in Oregon, if I Buy in 2022?

Published:
October 22, 2017
Last updated:
April 6, 2022
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Are you thinking of buying a home in Oregon sometime soon? If so, you’ll need to figure out how much you can afford to pay for a one based on rising prices across the state. This article will help you determine what it will cost you to buy a home in Oregon in 2022.

“How much house can I afford in Oregon?” It’s one of the most common questions among home buyers in Oregon. And with the steady rise in home prices over the last couple of years, we thought it was time for an updated look at this topic. Here’s how to figure out how much house you can afford in Oregon if you’re buying in 2022.

Related: Oregon first-time home buyer guide

Oregon Home Prices Expected to Rise Further Into 2022

Let’s start with current home-price trends in Oregon. According to data collected by Zillow, the median home value for Oregon was $486,642 in January 2022 (when this article was published). That’s a rise of 19.7% from the same time a year earlier. 

The company’s economists expect house values in Oregon to continue rising throughout 2022, though at a slightly less aggressive pace.  

So that’s the first thing you should know. Prices have risen considerably over the last few years. This will partly determine how much house you can buy in Oregon, within your budget.

Before entering the real estate market, spend some time looking at recent sales prices in the area(s) where you want to buy a home. This is the best indicator of how much house you can buy, based on current market conditions. It will also help you create a strong offer when the time comes.

Live Oregon Mortgage Rates

Down Payment Considerations

Down payment amounts are based on the price of the home. So a pricier house could mean you’ll have to put more money down. This too will determine how much house you can buy in Oregon.

When it comes to the minimum down payment needed to buy a home in Oregon, misconceptions abound. Surveys have shown that there’s a lot of confusion over this subject, including the notion that all buyers need 20% down.

The truth is there’s a lot of flexibility when it comes to the down payment requirements for mortgage loans. Your minimum required investment could be as low as 3%, depending on the type of loan you use. FHA loans require an investment of 3.5% of the purchase price. And with a VA loan, it’s possible to finance the entire purchase price.

You could even use gift money from a family member, to cover some of your upfront investment.

The down payment is a primary consideration when figuring out how much house you can afford to buy in Oregon. But it might not be as big of an obstacle as you think. To learn more about your options, read our article on buying with little money down.

Debt Ratios Affect Your Buying Power

Mortgage lenders use several tools to determine how much of a mortgage loan you can afford to take on. And the debt-to-income ratio, or DTI, is at the top of the list. This is simply a comparison between your monthly income and your recurring expenses (car loan, credit cards, mortgage, etc.).

If you’re going to use a mortgage loan, the debt-to-income ratio will partly determine how much of a house you can afford to buy in Oregon. Most of the loan programs available today set a limit somewhere around 45% – 50%, for the total debt-to-income ratio. But these numbers are not set in stone.

How Much House Can You Afford to Buy?

We recommend a two-step process to determine how much house you can afford to buy:

  • First, get a basic housing budget on paper, by subtracting all of your monthly expenses from your net income. Be sure to leave some emergency funds in the bank.
  • Next, contact us to get pre-approved for a home loan. We can review your financial situation (income, assets, and debts) to determine how you could borrow.

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Have Questions About Mortgages in Oregon?

“How much house can I afford in Oregon?” is a common question that we can help answer. Sammamish Mortgage is a local, family-owned company based in Bellevue, Washington. We have been serving the entire state since 1992, as well as the broader Pacific Northwest region that includes Idaho, Colorado, and Oregon. We offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us if you have mortgage-related questions.

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