VA Loans Oregon
Active duty or retired Oregon residents deserve to be thanked for their service! Oregon VA loans are the most popular option among the many benefits provided to veterans by the government. These low-interest home loans make your dream of homeownership easier than ever.
Though cheaper than neighboring states, buying a home in Oregon is still expensive — the average home costs $484,000. With a VA home loan benefit, you enjoy lower interest rates and no down payment requirement, making it easier for a service member or a qualifying spouse to purchase a primary residence for their family. As they are insured by the VA government agency, lenders are more willing to work with those who have less-than-perfect credit, offering them highly competitive rates.
Oregon VA Home Loans
Beautiful Oregon is the home of the free and the land of the brave, as over 251,000 veterans call the Beaver State home. Approximately 4,000 eligible service members received VA loans in 2023, totaling $1.6 billion in funding from the Department of Veterans Affairs. You can be one of these fortunate borrowers by working with District Lending. We’ve helped thousands of eligible veterans nationwide enjoy a simple home purchase process with amazing rates.
What You Need to Know About Oregon VA Loans
Oregon is one of only five states that offers its own service member loan product, the Oregon Department of Veterans Affairs (ODVA) home loan program, which does not require Oregon residency. However, many Oregon veterans prefer federal VA loans because they have higher loan limits and a refinancing option. Let’s take a look at the particulars of VA loans.
Funding Fees
A VA loan does not have a down payment requirement, but you will have to pay a funding fee. This is paid directly to the government and eases the loan program burden on the taxpayer, helping to keep the program in service. The funding fee will vary based on whether this is your first loan and how much you put down, but it is never more than 3.3% of the total loan amount.
Loan Eligibility
Unlike conventional mortgages, you can only use VA home loans for an owner-occupied property, not an investment property. You must also have qualifying military service, which will be identified through a Certificate of Eligibility (COE) issued by the VA. A loan officer from District Lending can assist you in gathering the information required to receive your COE.
Loan Insurance
Unlike conventional loans, you do not need private mortgage insurance because the federal government backs the loan. However, most private lenders will need you to purchase homeowners’ insurance to help protect your investment for the long term.
Loan Interest Rates
One of the best benefits of a VA loan is that it comes with a lower interest rate. For example, if the rate for a conventional loan type is 7.89%, you can get a VA loan for around a 7.13% interest rate. This makes it much more affordable than other loan products, reducing your monthly payment and helping you pay your loan off faster. Additionally, mortgage interest on a VA loan is tax-free, helping to reduce your tax burden.
How to Know if You Qualify for a VA Loan in Oregon
When you get a VA loan, you work with a private lender that partners with the government. To ensure that you match the program's parameters, you'll need to have a Certificate of Eligibility based on your service time and discharge status. Additionally, your lender will have some stipulations of their own.
Duty Status
The VA loan program is reserved for active service members and veterans who meet the service requirements. For current military, you must have at least 90 days of continuous active duty during wartime. National Guard service requires six years. Eligible veterans must have served at least 90 days of continuous active duty in wartime or 180 in peacetime. This requirement may be waived if you were injured in the line of duty.
VA Entitlement
For a first-time VA loan, you have a full entitlement, meaning there is no limit to how much you can borrow; the average loan amount is $411,495.
Those with a previous Oregon VA loan will have only partial entitlement, up to the county loan limit, which is $766,550 for a single-family home. Our loan officer informs borrowers on how much they can expect to afford so they can approach a real estate agent with confidence.
Discharge Status
Only Oregon veterans with an honorable discharge can get VA home loans. This can be due to government convenience, hardship, or medical issues. If you have a dishonorable, less-than-honorable, or bad conduct discharge, you will need to apply for a discharge upgrade from Veterans Affairs.
Decent Credit Score
Each lender has their own credit score requirements, but you must have at least a 580 credit score. The better your score, the better interest rates you can access, so work to rehabilitate your score as much as possible before applying by paying off other debts and boosting your credit lines.
Low Debt-to-Income Ratio
The average veteran applying for a loan has a debt-to-income ratio of 41% or less, meaning that only 41% of their monthly money goes to pay off other debts. You can expect better rates when you have a higher credit score and lower DTI.
Waiting Period
Many veterans choose to refinance their loan sometime down the line, either to get better rates or to leverage their home equity. A VA home loan has a seasoning period of 210 days from the closing date and the refinance process. You must also occupy the home full-time for at least one year and wait between three and four years between loans.
District Lending is Your Oregon VA Loan Partner
District Lending proudly offers federal VA loans to qualified service members and their families. We’ll explain all the benefits of this specialized loan product so that you feel confident in your decision.
When you work with us, you get personalized advice from a loan officer familiar with all facets of the VA loan system. We can also help with refinancing when you’re ready to get an even better rate than before.
Oregonian veterans deserve the best, and District Lending is here to provide. Contact us today to get started on your VA loan journey with one of America’s most trusted lenders.
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