HOME LOAN OPTIONS | OREGON, WASHINGTON & COLORADO

Types of Home Loans: Think You Need 20% Down? You Don't

Chances are, you have more options than you think.

Here’s a quick look at the home loan programs we’re asked about most, including minimum down payments and credit score guidelines.

And this is only the short list. We also finance renovation projects, manufactured homes, acreage, second homes, investment properties, and specialty scenarios that don’t fit neatly into a standard loan box.

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Tell us what you’re trying to do. We’ll help you find out what you qualify for, what matters now, and what can wait.

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You don't need a plan yet. A question is enough to start.

Maybe the table above answered your question. Maybe it gave you three more.

You don’t need to know which loan fits, hit some credit score to buy a house, or know exactly how much you should save. Those are the things we sort out together, including how much you can qualify for.

Curious how much credit actually moves the needle? There’s a quick example below. Either way, reach out with what you’ve got.

CHECKING IS THE EASY PART

  • No application, no credit pull to ask questions
  • We’ll tell you what you qualify for, and for how much
  • Answers based on your actual situation
  • A clear next step, or a clear “not yet”

THE REAL MATH: FHA VS. CONVENTIONAL

740 Score vs. 600 Score, FHA vs. Conventional: How Different Is the Monthly Payment?

You might expect a huge difference. In this FHA vs. conventional example, the monthly mortgage payment on a $450,000 house differs by only $3 per month with 5% down.

Many buyers assume they need to “fix” their credit before they can buy a home, but home loans with a low credit score are more available than people think. The right loan program makes a much bigger difference than people expect. The 740-score buyer uses a conventional loan, while the 600-score buyer uses FHA. Credit score is one of three levers, alongside down payment and debt-to-income ratio, and it’s usually the one buyers overestimate. Here is the payment breakdown, line by line.

Conventional- 740 Credit Conventional loan | 5% down
Estimated monthly payment breakdown, $450,000 purchase, 5% down — Conventional- 740 Credit Conventional loan | 5% down
Principal & interest $2916
Estimated homeowners insurance $75
Estimated property taxes $300
Initial private mortgage insurance (PMI) $189
Estimated initial monthly payment $3,480
FHA- 600 Credit FHA loan | 5% down
Estimated monthly payment breakdown, $450,000 purchase, 5% down — FHA- 600 Credit FHA loan | 5% down
Principal & interest $2931
Estimated homeowners insurance $75
Estimated property taxes $300
Initial FHA mortgage insurance $177
Estimated initial monthly payment $3,483

Conventional example: $427,500 loan · 30-year fixed · 7.774% APR · 360 monthly principal and interest payments of $2,916.
FHA example: $434,981 total loan including financed upfront mortgage insurance · 30-year fixed · 7.903% APR · 360 monthly principal and interest payments of $2,931.

Illustrative examples based on pricing available 9/18/2026. Payments shown include estimated property taxes, homeowners insurance and mortgage insurance. Actual taxes and insurance may be higher, and your actual monthly payment may be greater. FHA mortgage insurance remains for the life of the loan with less than 10% down, while conventional private mortgage insurance can be removed once sufficient equity is reached, so the difference between these payments may widen over time. Subject to borrower, property and program qualification. Terms subject to change. Not a commitment to lend. Bend Mortgage Brokers, a DBA of Lauren Hatmaker LLC, NMLS #1433297. Bend branch NMLS #2552455. Equal Housing Opportunity.

Refinance

Refinance: lower the payment, shorten the term, or take cash out.

A refinance replaces the mortgage you have with one that fits better, and better means different things to different people. There are really two kinds. A rate and term refinance swaps your loan for a new one: a lower mortgage payment, a shorter term, removing PMI, or dropping a name from the loan, without touching your equity. A cash-out refinance (cash out refi, cashout refinancing, however you’ve seen it spelled) replaces your mortgage with a larger one and hands you the difference. Different jobs, same tool.

The number that decides most of it is LTV, loan-to-value: how much of your home’s value you’re borrowing. An 80% max LTV means the new loan can be up to 80% of what the house is worth, and that limit changes with the program and how you use the property. Here’s how each one handles it.

Refinance options by loan program
Refinance type Fast facts
Rate & term Lower the payment or change the term Lower the payment, shorten the term, or remove PMI when the equity supports it. Primary residence, second home, and investment property are all eligible.
Cash-out Take cash out Turn home equity into cash for projects, debt payoff, investing, or a buyout. Max LTV depends on occupancy and unit count; rental properties qualify for cash out at a lower limit.
Streamline FHA to FHA Already have an FHA loan? The FHA streamline refinance lowers the rate with usually no appraisal and lighter documentation. It requires a net tangible benefit and allows only limited cash back.
Rate & term Move into or refinance FHA Refinance an FHA or non-FHA loan into FHA. More flexible credit than conventional, and a common way out of a higher rate while scores are still recovering.
Cash-out Take cash out FHA cash-out refinance up to 80% max LTV on a primary residence, with more flexible credit than conventional.
IRRRL (VA Streamline) Interest Rate Reduction Refinance Loan, VA to VA The IRRRL, often misspelled IRRL and also called the VA streamline refinance, drops the rate on an existing VA loan. VA-to-VA, no cash out, no VA appraisal required, and in most cases no income documentation.
Cash-out VA or non-VA loan into VA The only program that allows a cash out refinance up to 100% LTV. Can also refinance a non-VA loan into a VA loan, with or without cash back.
Streamlined-Assist USDA to USDA Lower the payment on an existing USDA loan. Requires a payment benefit, usually no appraisal, and no standard debt-to-income calculation.
Rate & term or cash-out Above conforming loan limits Refinance loan amounts above the conforming limit. Jumbo refinance rates and max LTV vary by investor, so we shop them.
Rate & term or cash-out Investment property, qualify on rent Debt service coverage ratio loan: qualify on the property's rental income instead of your tax returns. Investment properties only, including DSCR cash-out refinance.
HELOC, home equity loan, or second mortgage Keep your first mortgage Keep the mortgage you already have and access equity separately. A HELOC or second can also help bridge a purchase before you sell. Availability and limits vary by investor.
Reverse mortgage (HECM) Age 62 and up FHA-insured reverse mortgage with no required monthly principal-and-interest payment. Available proceeds depend on age, interest rates, and home value.

About the limits: where a max LTV is mentioned, it applies to a 1-unit primary residence. Second homes, investment properties, and 2-4 unit homes have their own limits. Ask us for your number.

When does refinancing make sense? Forget the 2% rule; that’s a rule of thumb from a different rate era. The math that matters is how many months of payment savings it takes to earn back the closing costs, and whether you’ll still own the house by then. We run that number with you, and if it doesn’t pencil we’ll say so.

Does refinancing hurt your credit? A refinance pulls your credit once, and the dip is small and temporary. Lower scores don’t rule you out either. FHA and VA refinances are more forgiving than conventional, and a streamline can skip much of the credit review entirely. If you’re trying to refinance with bad credit, we’ll tell you which program fits before you apply, not after.

What does it cost to refinance? Closing costs usually land between 2% and 5% of the loan amount, and there’s no such thing as a no closing cost refinance. There’s also no down payment to refinance; your existing equity does that job. There is rolling the costs into the loan amount, and there is taking a lender credit that covers them. Both are real, both have a tradeoff, and you’ll see the tradeoff before you decide anything.

Not everybody should refinance, and we’ll say so. If you like the mortgage you already have, there’s a way to get equity out of your home without refinancing it: a HELOC, a second mortgage, or a home equity loan, sitting behind your first loan instead of replacing it. Home equity loan vs HELOC comes down to whether you want the money in one piece or a line you draw on as you go. We’ll put either one next to a cash-out refinance and show you which one pencils.

That’s also how we handle buying before you sell. A bridge loan is the usual answer to that and it’s an expensive one: fees going in, and a refinance coming out. A HELOC or a second on your current home does the same job with fewer moving parts, and it leaves you the option of keeping the old place as a rental instead of selling it.

If you’re 62 or older, a reverse mortgage, formally a HECM, is another way to use the equity you already have, and it deserves an honest comparison against a HELOC rather than a reflex. We do them, and we’ll show you both sides.

Program guidelines shown, not a promise of approval. Actual eligibility, maximum LTV, credit requirements and available loan options depend on the complete loan profile, property type, occupancy, automated underwriting where applicable, and available investor guidelines.

Loan Programs

Go deeper on any mortgage type.

Between these programs we can finance most homes, properties, and income types in Oregon, Washington, and Colorado. Second homes, investment property, manufactured and mobile homes, and the unusual ones: barndominiums, container homes, and other unique properties. Pick a home loan type to see how it works, and if the one you need isn’t here, ask.

Conventional Mortgages

A conventional loan is the home loan most buyers reach for, and a conventional mortgage is more flexible than you’d expect. No set minimum credit score, more than one way to qualify, and unique properties welcome: tiny homes, barndominiums, manufactured and modular homes, second homes and vacation properties, even jumbo loans above conforming limits. Tell us your situation.

Conventional Mortgages: How it Works

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