Conventional Loans

Conventional loans are the most common home loan option and a great fit for buyers with stable income and solid credit. They can be used for primary homes, second homes (vacation homes), and investment properties (rentals). If you’re buying or refinancing, we’ll help you choose the right down payment, rate structure, and strategy so you get the best deal with no hidden fees.

Fast facts

• Typical minimum credit score: Often around 620 and up with less than 20% down, though there is no longer a set minimum. This is great for high equity borrowers wanting to cash out or lower their payment, that previously had too low of score to qualify!
• Special pricing for first time buyers below 100% of area income for QUALIFYING income. That means just the income we need to use to qualify for the loan counts, we can exclude income to fit the limits. See Oregon AMI limits by county →
• Special pricing for anyone below 100% of area income buying manufactured home
• One more first time buyer program for buyers below 80% of area income, regardless of previous home owner status.

Typical down payment:

• 3% down for first time buyers and some non first time buyers on a primary single family residence
• 5% or more for other primary residence purchases. This includes duplexes up through fourplexes.
• 10% to 25% down for second homes and investment properties
• Property types: 1 to 4 unit homes, second homes (vacation homes), and rentals.
• Manufactured homes: Yes. Single, double, and multi-wides built in or after 1976.
• Rate types and terms: We mostly use a 30 year fixed, but shorter options like 10, 15, or 20 years and some ARMs are available if they make more sense for your plan.
• 4 year seasoning for Bankruptcies- Look to FHA for shorter wait options

Best fit for you if

• You have solid credit and stable income.
• You want flexibility for second homes or rentals.
• You like the idea of mortgage insurance dropping off once you reach enough equity.

Big perks

• No funding fee, unlike FHA.
• Mortgage insurance is based on your credit score, so it can be extremely cheap for higher credit profiles. For lower credit scores we often suggest looking at FHA as well and compare both options.
• Works well for multi unit, second home, and investment property purchases.

Keep in mind

• Pricing is sensitive to credit score and debt to income.
• Loan limits depend on county and unit count.
• In some cases FHA or VA may still give a lower payment even if you qualify for conventional, so we always run them side by side.