Home Loans in Portland, Oregon

Portland is the largest and most populous city in the State of Oregon. It has a population of 652,503 making it the sixth-most populous on the west coast and the second-most populous in the Pacific Northwest, after Seattle. The Portland housing market is still hot despite the economic slowdown caused by the pandemic.

Is buying a home in Portland, Oregon on your agenda this year? You’ll probably need to finance it with a home loan. Whether you’re a Portland resident ready to buy your first home or you’re relocating from another state, obtaining a home loan doesn’t have to be complicated. 

The first thing to know is if you are eligible for a mortgage to help fund this big purchase. So, what are the requirements to get a home loan in Portland? Here’s what you need to know.

Portland Home Loans General Requirements

1. Your Ability to Repay the Loan

You’ll need to be able to demonstrate your ability to afford the mortgage payments for the home that you purchase. Lenders will want to see your income, assets, credit, monthly expenses, and other supporting documents under the ability-to-repay rule.

They will also consider your debt-to-income (DTI) ratio, which is a measure of how much of your monthly income goes into debt repayments. Ideally, it should be no more than 28%. You can use this debt-to-income ratio calculator to determine your DTI.

2. Down Payment 

The amount needed for your down payment will depend on the type of home loan that you’re trying to get. Most loan types, including Freddie Mac and Conventional loans, require a minimum down payment of 3%. FHA loans typically require at least a 3.5% down payment. 

In general, a larger down payment means better repayment terms, as well as a higher chance of your loan application being approved. Try to raise at least a 20% down payment if you want lenders to take your offer seriously. 

3. Decent Credit Score

You will need an acceptable credit score before you can be approved for a home loan. These three-digit numbers are computed based on the data from your credit report. They give lenders insight into how well you have managed credit in the past. 

Most Oregon mortgage lenders want to see a minimum credit score of 620. In any case, the higher your credit score, the better your chances of getting approved for a home loan. 

4. Manageable Debt

Lenders will look at your current level of debt when considering your home loan application. They will consider things like personal loans, student loans, auto loans, and credit card debt, among others. 

Each lender has its own threshold for what constitutes an acceptable level of debt. The key is to ensure that even with a sizable debt profile, you have the financial capacity to repay them, in addition to the home loan repayments that you’re about to take on.  

Portland, OR Mortgage Lender 

Soaring prices and uncertainties in the real estate market can make owning a home in Portland daunting, especially for first-time homebuyers. We’re here to help. 

At Capital Home Mortgage, we offer a comprehensive lineup of home loan products, including Conventional, FHA, USDA, VA, Jumbo, and Native American home loans. 

As a direct Portland, OR mortgage lender, we control the entire loan application and approval process from start to finish. This means you don’t have to deal with multiple vendors and third-party providers on your journey to becoming a bonafide homeowner. 

Ready to Own Your Dream Home in Portland?

If you are ready to buy a home and are in need of a loan, Capital Home Mortgage can make it a reality for you. We understand that home loans are not one-size-fits-all, so we provide our loan officers with all the necessary tools and support to help you make the right decision. 

Whether you are a first-time homebuyer looking at a Portland FHA Home Loan, active duty or retired veteran needing a Portland VA Home Loan, or a seasoned buyer with a Portland Conventional Home Loan we are here to help.

Thank you again for your interest in our services and we look forward to providing you next home loan.

Call us at 503-303-0662 to get started. You can also check out our mortgage calculator to get an idea of what to expect based on your preferred home loan type.