PUBLISHED: Mar 30, 2023
Buying a house is a major endeavor that requires a lot of planning and, in many cases, some stress to go along with it. It’s made even more challenging by the fact that each state has different laws, home buyer programs and real estate markets.
If you’re considering buying a house in Oregon, it’s important to know how the process works, the best place to buy a house, the programs that are available and more.
Oregon’s population has grown rapidly over the past decade as more people have discovered the benefits and joys of living there. The state offers plenty of benefits to its residents, including its beautiful scenery, access to nature and abundance of outdoor activities.
The state also has a welcoming, progressive culture that includes a focus on a sustainable lifestyle. And in addition to the outdoor activities, there are plenty of urban areas that offer everything you may want out of big city life.
Finally, though Oregon has an above-average cost of living, it doesn’t charge a state sales tax. As a result, your shopping and grocery bills may be a bit cheaper since they won’t have taxes added on.
Most people can’t afford to buy homes in cash, meaning they have to take out loans to do so. And while the home buying process may differ depending on where you live, the requirements to qualify for a mortgage are basically the same. Here are a few things you’ll need:
Before you start looking at homes in Oregon, there are a few location-specific things you should consider:
Deciding where to buy a home is a big choice. Here are some of the best places to live in Oregon. No matter what type of home you’re looking for, you can find it there.
Portland is the largest city in Oregon, with a population of about 640,000. It sits at the very northern tip of the state near Mount Hood, surrounding the Willamette River and just across the Columbia River from Vancouver.
Portland offers the benefits of both big city living and the outdoors. In Portland you can enjoy museums, restaurants, breweries, festivals and much more. Within an hour or two of the city, you can find yourself either in the mountains or on the Pacific coast.
Bend ranks among the 10 largest cities in Oregon, with a population of just over 100,000. Bend is located in the central part of the state and is surrounded by nature. It sits just east of the Cascade Mountains, just north of Paulina Peak, and just west of the Oregon Badlands Wilderness. So, as you can imagine, there’s plenty of outdoor recreation there.
It’s worth noting that Bend isn’t a cheap place to live. The median home price in Bend is $724,900. However, it’s worth it for many people. After all, Bend offers many of the benefits of a big city but surrounded by scenic views.
If you’re looking for somewhere more affordable to call home in Oregon, Salem is a great choice. The city has an average housing price that’s lower than not only the state average, but also the national average. It gives you all the benefits of living in Oregon, but with a lower price tag.
Salem sits about an hour south of Portland and serves as the state capital of Oregon. As a result, it’s home to the Oregon State Capitol building that features art collections by Oregon artists. The city is also home to an art museum and historical sites. And like much of Oregon, Salem is just a short drive away from plenty of outdoor recreation activities.
Corvallis is smaller than most places on our list – it’s home to about 60,000 people. It sits just south of Salem along the Willamette River. Corvallis is known for being the home of Oregon State University. However, it also has many benefits of a smaller town.
Like many Oregon cities, Corvallis is surrounded by nature. You can find parks and natural areas on all sides of the city. And as it sits along the Willamette River, much of the riverfront is filled with parks and natural areas.
The Oregon coastline isn’t a single place, but many different towns that sit along the Pacific Ocean. According to Oregon law, all 363 miles of the state’s coastline are accessible to the public. If you love beaches, boating and fishing, it might be the place for you.
Some of the top cities along Oregon’s coast to call home are Newport, Cannon Beach, Coos Bay and Seaside.
Oregon, like many other states, offers programs to make it easier to buy a home. Additionally, Oregon residents have access to federal home buying programs.
The Oregon Bond Residential Loan Program is available to first-time home buyers who want an affordable 30-year fixed interest rate with as little as zero cash down. The program provides below-market interest rates to buyers to help them lower their monthly payments and increase their purchasing power.
A USDA loan is one that’s either backed or originated by the federal government and available to borrowers in rural areas (which includes much of Oregon).
There are a couple of different types of loans available. The Single Family Housing Direct Loan allows low-income and very-low-income borrowers to buy or build homes in rural areas with no down payment. The Single Family Housing Guaranteed Loan Program helps moderate-income borrowers buy or build homes in rural areas with no down payment.
An FHA loan is one that’s backed by the Federal Housing Administration. These loans help borrowers with poor credit access money to buy homes when they otherwise may not qualify for loans. Depending on credit score, a borrower either needs 3.5% or 10% down.
If you’re a current or former military member, then you can buy your home in Oregon with the help of a VA loan, which is backed by the Department of Veterans Affairs. VA loans don’t require a down payment or private mortgage insurance, and they offer competitive interest rates to make home buying more affordable.
As you’re getting ready to buy a house, here are a few things you’ll want to add to your to-do list:
Figuring out your budget is one of the most important steps of buying a home. Start by looking at the average home price in Oregon and, more specifically, in the city where you want to live.
When calculating your budget, consider how much debt you already have, since you’ll need to keep your DTI below a certain level. Also, factor in interest, property taxes, HOA fees and other monthly costs in your calculation.
Getting preapproved with a mortgage lender before you actually start looking is a huge help when you’re shopping for a home. First, it gives you an idea of how much a lender will approve you for an at what interest rate. It also shows sellers you’re serious, which could improve your chances of having an offer accepted.
When it comes to choosing a lender, look for one that can offer the best rate and loan terms for the type of mortgage you want.
Yes, some people buy homes without a real estate agent. But there’s really no good reason to skip the agent (especially since the seller usually pays both agents’ commissions).
A good real estate agent will help you get to know the local real estate market and get a realistic idea of what your budget can afford. They’ll also help you get into see homes you love and get your offer accepted.
Once you’ve found the perfect home for your family, you can officially make an offer. Your real estate agent can help you craft a good offer and determine whether to ask higher or lower than the asking price (and by how much).
Keep in mind that an offer isn’t the end. Once your offer is accepted, you’ll still need to go through the home inspection, the appraisal and the mortgage approval process.
Once your loan has been approved, you can officially close on your home. Oregon doesn’t require a real estate agent to close on a home. Instead, an escrow company will oversee it. On the closing day, you’ll bring a check for your down payment and closing costs.
Buying a house in Oregon can be expensive, which makes it challenging for many people. If you already live in Oregon, you must decide whether buying is indeed a better choice than renting. And if you’re just considering a move, you’ll have to decide if Oregon is right for you.
Ultimately, Oregon is a popular place to live (which is part of why it’s so expensive) and it’s easy to see why. If you enjoy the outdoors and the unique culture that Oregon offers, then you may decide the higher housing costs are worth it.
Are you planning on buying a house in Oregon? Keep reading to learn the answers to some questions you might have.
Yes, Oregon offers a first-time home buyer program that allows you to buy a home at a below-market interest rate with little to no down payment.
While it’s not entirely necessary to work with a real estate agent to look at homes, it’s definitely preferable. An agent will have more access to homes, connections with other agents and internal knowledge of the Oregon real estate market and buying process.
Buying a home in Oregon may be expensive, but it can also be an excellent investment. Not only will your home provide a nice place to live, but it can could increase in value, meaning you’ll get more money for it when you eventually sell.
Oregon can be an amazing place to live and buy a home, but it’s important to know what you’re getting yourself into. If you’re planning to buy a home, apply for a mortgage with Rocket Mortgage® to find out how much you’re approved for and start shopping for your dream home.
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