Why Buyers Choose Conventional
PMI Cancels at 20%
Unlike FHA MIP, conventional PMI cancels automatically when you build 20% equity — saving hundreds per month.
As Low as 3% Down
Conventional 97 programs allow 3% down for qualified buyers. Standard programs start at 5% down.
Higher Loan Limits
Conforming loan limits exceed FHA limits in many Oregon counties — more flexibility on home price.
More Property Types
Second homes, investment properties, and certain condos that don't qualify for FHA can go conventional.
Rate Buydown Eligible
Combine your conventional loan with a 2-1 or permanent buydown to reduce your payment in early years.
Flexible Terms
Choose from 10, 15, 20, or 30-year terms — matching your monthly budget and long-term financial goals.
Conventional Loan Requirements in Oregon
- ✓Credit Score: 620+ minimum; 740+ for most favorable rates
- ✓Down Payment: 3% (Conventional 97), 5% standard; 20% avoids PMI
- ✓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
Should I choose conventional or FHA as a first-time buyer?
It depends on your credit score and how long you plan to keep the loan. Conventional is often better for buyers with 660+ scores who want PMI to cancel. FHA is better for buyers with lower scores or who need more flexible guidelines. We'll run both scenarios for you and show you the numbers side by side.
What credit score do I need for a conventional loan?
620 is the typical minimum, but rates improve significantly as your score rises. Borrowers with 740+ get the best pricing. I'll show you exactly what rates you qualify for based on your current score.
When does conventional PMI go away?
PMI cancels automatically when your loan balance reaches 80% of the original purchase price. You can also request removal once you reach 80% through a combination of payments and appreciation — typically verified by a new appraisal.
Can I use conventional for a vacation home or rental?
Yes — conventional is the primary financing path for second homes and investment properties. Down payment requirements are higher (10–25%), but it's the most common option for non-primary residences.
Other Loan Programs
Get My Conventional Loan Pre-Approval →
Takes 2 minutes · No credit pull · No obligation