For buyers with solid credit and stable income, a Conventional Loan is often the most cost-effective path to homeownership in Oregon. Whether you’re buying in Portland’s close-in neighborhoods, the tech suburbs of Beaverton and Hillsboro, Salem’s growing communities, Eugene’s university market, or Bend’s outdoor recreation corridor, conventional financing offers a clean, flexible path with a single statewide limit to understand.
Oregon is one of those states where the conforming limit is truly uniform: all 36 counties follow the same $832,750 ceiling for 2026, with no high-cost designations. This simplicity makes conventional financing predictable — and Oregonians who qualify often find it the lowest long-term cost path to homeownership.
A Conventional Loan is a mortgage not insured or guaranteed by a federal government agency. Unlike FHA Loans or VA Loans, Conventional Loans are funded by private lenders and typically sold to Fannie Mae or Freddie Mac. Because there’s no government guarantee, lenders apply stricter qualification standards — but borrowers who qualify often benefit from more competitive pricing, greater property flexibility, and lower long-term mortgage insurance costs.
620, though 700+ typically unlocks the best rates
As low as 3% for first-time buyers through HomeReady/Home Possible; 5% for repeat buyers; 20% eliminates PMI
Generally up to 45%, with room for exceptions based on compensating factors
$832,750 uniform across all 36 Oregon counties (2026)
Primary residences, second homes, and investment properties are all eligible
Documented, verifiable income required; self-employed borrowers can qualify with two years of tax returns
Unlike neighboring California, which has multiple high-cost county tiers, or Washington State with elevated limits in King County, Oregon has a single conforming limit for all 36 counties. There’s no limit arbitrage to manage between counties, and the limit covers a meaningful range of Oregon’s market — the statewide median home price was approximately $498,000 in late 2025, comfortably inside conventional financing range for most buyers.
For purchases above $832,750 anywhere in Oregon, a Jumbo Loan is required.
| Feature | Conventional Loan | FHA Loan |
|---|---|---|
| Minimum Credit Score |
620 |
500 (580 for 3.5% down) |
|
Minimum Down Payment |
3% (first-time buyers) |
3.5% (score 580+) |
|
Mortgage Insurance |
PMI; removable at 20% equity |
MIP; lifetime in most cases |
|
Upfront Insurance Fee |
None |
1.75% UFMIP |
|
Investment Properties |
Yes |
No (primary residence only) |
|
Oregon Conforming Limit |
$832,750 (all counties) |
$541,287–$762,450 by county |
PMI typically ranges from 0.5% to 1.5% of the original loan amount annually and can be removed once you reach 20% equity through payments, appreciation, or both. Portland and Bend in particular have seen meaningful appreciation, allowing some buyers to reach PMI removal thresholds ahead of schedule.
Have a credit score of 680 or higher
Can put down at least 5–10%, or 20% to avoid PMI
Want to purchase a second home, vacation property, or investment property
Want the option to remove PMI as equity builds
Are purchasing a property that may not meet FHA minimum condition standards
Are buying in a competitive market where sellers prefer conventional offers
$832,750 for a single-family home in every one of Oregon’s 36 counties. Oregon has no high-cost county designations.
Yes. OHCS Flex Lending’s NextStep and FirstHome programs are both compatible with conventional financing. Minimum credit score 620. See our Down Payment Assistance page for full details.
Most lenders require a minimum of 620. The best rates and terms typically go to borrowers at 740 or above.
PMI on a Conventional Loan can be removed at 20% equity; FHA MIP typically applies for the life of the loan with less than 10% down. Conventional Loans also permit second homes and investment properties.
Yes. Oregon’s vacation rental markets — particularly Bend, Cannon Beach, and the southern Oregon coast — are active conventional investment financing markets.
