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Taking out a mortgage in Oregon requires some knowledge in order to make sure you only commit to something you’re well-versed in. This article will answer some of the more common questions when it comes to conventional mortgages in Oregon.
If you’re going to buy a home in Oregon using a mortgage loan, one of your first choices will be whether to use a conventional home loan or a government-insured mortgage. Conventional is the most common financing option among borrowers.
Here are answers to four of the most frequently asked questions regarding conventional home loans in Oregon.
In this context, a conventional mortgage loan is one that is not insured by the government. Some home loans are backed by government agencies, such as the Department Of Veterans Affairs (VA) or the Federal Housing Administration (FHA). A conventional home loan, on the other hand, does not receive any kind of backing or guarantee from the government.
In some cases, a conventional home loan in Oregon might be insured by a private mortgage insurer. This is often the case for borrowers who make smaller down payments and therefore have a higher loan-to-value ratio. But with a conventional loan, the insurance policy is provided by an insurer within the private sector — not by the government. That is the key distinction.
As mentioned, Oregon’s conventional home loans are the most popular financing option among borrowers. But the FHA and VA programs are commonly used as well.
Generally speaking, VA and FHA loans are easier to qualify for than conventional, because of the government backing. But a well-qualified borrower could use either option.
From a size perspective, there are two different kinds of conventional home loans in Oregon. They are either conforming or jumbo, depending on the amount being borrowed.
Borrowers seeking a non-conforming jumbo mortgage loan must have a higher level of income, due to the larger amount being borrowed. The amount you can borrow will also depend on your existing debts and your monthly income. Please contact us if you would like to get pre-approved for a loan amount.
Check out our mortgage loan limit tool for conventional, FHA, and VA loans.
Mortgage lenders review a variety of factors when considering loan applications. These factors can include the borrower’s credit score, the size of the down payment, debt, and income level. These are some of the most important requirements for a conventional loan in Oregon.
A credit score of 600 or higher will generally put you in a good position to qualify for conventional mortgage financing. A manageable level of debt is important too. Lenders want to ensure that you are not taking on too much debt with the addition of a home loan.
Additionally, borrowers must demonstrate that they have the financial means to repay the loan obligation. Income is verified through a variety of documents, including bank statements, tax records, and pay stubs.
Sammamish Mortgage is a local mortgage company serving the broader Pacific Northwest region, including Washington state, Idaho, Colorado, and Oregon. We have been in the industry since 1992 and are proud to offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us if you have any questions or are ready to apply for a home loan.
Are you thinking of buying a home in Washington state using a VA loan? Read on to find out more and to check out our loan limits tool.
VA loans are highly beneficial to veterans who qualify, mainly because of the option to put no money down. Read on to find out more and to check out our loan limits tool.