How Much Do You Really Need for a Down Payment in 2026?

How much do you really need for a down payment in Oregon?

If you’ve been told you need 20% down to buy a home, I want to clear that up right now — because for most buyers I work with across Oregon, that simply isn’t true.

With over 36 years of mortgage experience, I’ve helped hundreds of Oregon buyers get into homes with far less than 20% down. Here’s what you actually need to know.

The 20% Down Payment Myth

The idea that you must put 20% down comes from an older era of lending. Today, there are loan programs specifically designed to help buyers purchase homes with much less upfront.

The 20% threshold does have one benefit — if you put 20% or more down on a conventional loan, you avoid paying Private Mortgage Insurance (PMI). But for many buyers, waiting to save 20% means missing out on years of building equity while home prices continue to rise.

In most cases, getting into a home sooner — even with a smaller down payment — is the smarter long-term financial move.

Down Payment Requirements by Loan Type in Oregon

Here’s a clear breakdown of what each major loan program requires:

Conventional Loans — As Low as 3% Down

Conventional loans are the most common loan type for Oregon homebuyers. With good credit (typically 620+), you can qualify for a conventional loan with as little as 3% down. On a $400,000 home, that’s just $12,000 — not $80,000.

PMI is added to your monthly payment when you put less than 20% down, but it can be removed once you reach 20% equity in your home.

FHA Loans — 3.5% Down

FHA loans are a popular choice for first-time buyers in Oregon because they allow lower credit scores (as low as 580) and require only 3.5% down. On a $400,000 home, that’s $14,000 down.

FHA loans do carry mortgage insurance for the life of the loan in most cases, which is something to factor into your monthly budget.

VA Loans — Zero Down Payment

If you are a veteran, active-duty service member, or qualifying surviving spouse, a VA loan may allow you to purchase a home in Oregon with absolutely no down payment. This is one of the most powerful benefits available to veterans and one I help clients use correctly every day.

VA loans also have no PMI, which keeps your monthly payment lower than most other loan options.

USDA Loans — Zero Down in Eligible Rural Areas

Oregon has many areas that qualify for USDA loans, including parts of the Willamette Valley, Southern Oregon, and the coast. USDA loans offer 100% financing — meaning zero down payment — for buyers purchasing in eligible rural and suburban areas.

Down Payment Assistance Programs in Oregon

Oregon also has several down payment assistance programs through Oregon Housing and Community Services (OHCS) that can help cover your down payment and closing costs. These programs are especially helpful for first-time buyers and low-to-moderate income households.

I help clients identify and qualify for these programs as part of the mortgage planning process.

What About Closing Costs?

Down payment is only part of what you need at closing. Closing costs in Oregon typically run between 2% and 3% of the loan amount. On a $400,000 purchase, that could be $8,000–$12,000 in addition to your down payment.

However, there are strategies to reduce or even eliminate out-of-pocket closing costs — including seller concessions, lender credits, and assistance programs. This is exactly the kind of strategic planning I do with every client before they start shopping.

So How Much Do You Actually Need?

Here’s a realistic picture for an Oregon home purchase at $400,000:

• Conventional loan (3% down): ~$12,000 down + closing costs
• FHA loan (3.5% down): ~$14,000 down + closing costs
• VA loan: $0 down + minimal closing costs
• USDA loan: $0 down + closing costs

The right answer depends entirely on your situation — your credit, your income, your goals, and how long you plan to stay in the home.

The Best First Step: Know Your Numbers Before You Shop

Before you start looking at homes in Oregon, the most important thing you can do is understand your buying power. That means getting pre-approved — not just pre-qualified — so you know exactly what down payment amount makes sense for your specific situation.

I review your full financial picture and help you choose the loan structure that fits your goals, not just the one that gets you approved.

Ready to Find Out What You Need?

If you’re thinking about buying a home in Oregon and want to know exactly how much you need for a down payment, let’s talk. I’ll walk you through your options clearly — no pressure, no confusing jargon, just a real plan.

👉 Schedule a free strategy call or apply online today.

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Deanne Taylor | Licensed Mortgage Lender in Oregon and 10 States | NMLS #92342 | Peak Residential Lending, NMLS #2433973