Conventional Loan Benefits in Oregon
Rate Buydown Eligible
Conventional loans pair perfectly with 2-1, 1-0, and permanent buydowns — seller can contribute to the cost.
No Lifetime MIP
Unlike FHA, conventional PMI cancels automatically when you reach 20% equity — no MIP for the life of the loan.
As Low as 3% Down
Conventional 97 programs allow 3% down for qualified first-time buyers. Standard programs start at 5% down.
Higher Loan Limits
Conforming loan limits exceed FHA limits in most Oregon counties — more buying power for higher-priced homes.
More Property Types
Conventional financing covers second homes, investment properties, and condos that FHA won't approve.
Flexible Terms
10, 15, 20, and 30-year terms — choose the structure that fits your monthly budget and long-term goals.
Conventional Loan Requirements in Oregon
- ✓Credit Score: 620+ minimum; 740+ for best rates
- ✓Down Payment: 3% (Conventional 97), 5% standard; 20% avoids PMI entirely
- ✓DTI: Up to 45–50% with strong compensating factors
- ✓Employment: 2-year history preferred; self-employed with 2 years of tax returns
- ✓Property: Primary residence, second home, or investment property
- ✓PMI: Required with less than 20% down; cancels automatically at 80% LTV
Conventional Loan FAQ
Can I combine a conventional loan with a rate buydown?
Absolutely — conventional loans are the most common vehicle for 2-1 and permanent buydowns. The seller can contribute up to 3–9% of the purchase price (depending on down payment) toward closing costs, including the buydown cost. I'll show you exactly what your payment looks like in years 1, 2, and 3.
What's the difference between conventional PMI and FHA MIP?
Conventional PMI cancels automatically when your loan balance reaches 80% of the home's value — and can be removed even earlier by request at 80% LTV. FHA MIP with less than 10% down never cancels — it's for the life of the loan. For buyers who plan to stay long-term, conventional often wins on total cost.
What credit score do I need for a conventional loan?
620 is the typical minimum, but your rate improves significantly as your score rises. The best conventional rates generally go to borrowers with 740+ scores. I'll tell you exactly what rates you qualify for based on your scenario.
Can I buy a second home or investment property with conventional?
Yes — conventional financing is available for second homes and investment properties, which FHA does not allow. Down payment requirements are higher (typically 10–25%), but conventional is the standard path for non-primary residence purchases.
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