Trying to choose between FHA, VA, or conventional financing for a home in Dallas, Oregon? You are not alone. With different rules, fees, and property requirements, the right choice depends on your credit, savings, eligibility, and the home you want. In this guide, you will learn how each loan works, what it costs, and which factors matter most in Polk County. Let’s dive in.
FHA vs VA vs conventional at a glance
- FHA: Low down payment and flexible credit, but includes up-front and annual mortgage insurance and stricter property standards.
- VA: For eligible veterans, service members, and some surviving spouses. Often 0% down and no PMI, but a funding fee usually applies and VA appraisals can require repairs.
- Conventional: Strong option if you have higher credit and a larger down payment. PMI can be canceled as you build equity. Credit and debt standards are usually stricter.
Who qualifies and what it costs
FHA basics
- Eligibility: Available to most U.S. citizens and eligible non-citizens. Lenders set their own credit minimums. Many approve 3.5% down with scores around 580 or higher.
- Down payment and fees: Minimum 3.5% down for many borrowers. FHA charges an up-front mortgage insurance premium that can often be financed, plus annual MIP.
- Mortgage insurance: MIP typically remains for many years, sometimes the life of the loan, depending on terms. Ask your lender how long MIP would apply.
VA basics
- Eligibility: You must meet service requirements and obtain a VA Certificate of Eligibility. You can request a COE through your lender or directly through VA’s eligibility page.
- Down payment and fees: Often 0% down for those with full entitlement. A one-time VA funding fee usually applies unless exempt, and it can be financed. See the current schedule on the VA funding fee page.
- Mortgage insurance: No monthly PMI on VA loans, which reduces ongoing costs.
Conventional basics
- Eligibility: Based on lender and investor rules. Best pricing often goes to higher credit scores and lower debt-to-income ratios.
- Down payment and fees: As low as 3% for some programs, more commonly 5 to 20 percent. Less than 20 percent down usually requires PMI.
- Mortgage insurance: PMI can usually be canceled as you reach equity milestones. Ask your lender for the timeline to request PMI removal and when automatic termination might occur.
Loan limits and the Dallas price fit
Loan limits update every year. Before you assume you qualify for a certain loan size, check the current numbers for Polk County.
- FHA: Use HUD’s FHA county loan limit lookup to confirm the maximum FHA-insurable amount for Polk County.
- Conventional: Check conforming limits with the FHFA conforming loan limit tool.
If your target price exceeds these limits, you may need a jumbo loan or a different strategy. Matching your price range to the right program early can save time and stress.
Appraisals and property condition
- FHA: The home must meet HUD minimum property standards. Items that affect safety, soundness, or sanitation usually must be repaired before closing.
- VA: VA Minimum Property Requirements protect habitability and safety. The appraiser may call out repairs that must be completed prior to closing.
- Conventional: Guidelines can be more flexible for minor issues. Some lenders allow repair escrows or holdbacks, depending on investor rules.
If you are looking at older homes or fixers, talk with your lender early. FHA 203(k) or conventional renovation loans can help, but standard FHA and VA appraisals may delay or block a purchase that needs significant work.
Seller help and occupancy rules
- FHA: You must plan to occupy the home as your primary residence within a set timeframe. FHA allows seller help with closing costs up to program limits, which many lenders cite as up to 6 percent. Confirm current caps with your lender.
- VA: Owner-occupancy is required. VA allows sellers to pay buyers’ closing costs and certain concessions, within VA-defined limits.
- Conventional: Concessions vary by down payment and occupancy. Primary residence programs require owner occupancy.
Discuss seller-paid costs with your agent when you structure offers so your terms align with program rules.
Dallas, Polk County factors to know
Down payment help in Oregon
State-level resources can complement FHA, VA, and conventional financing. Oregon Housing and Community Services offers education and programs that may include down payment assistance or below-market rate loans. Explore current options at Oregon Housing and Community Services homebuyer programs.
Insurance and local hazards
Lenders require homeowner’s insurance on financed properties. If the home sits in a FEMA Special Flood Hazard Area, flood insurance will also be required. Check a property’s location using the FEMA Flood Map Service Center. Wildfire risk is not the primary concern in Polk County compared to other parts of Oregon, but insurer guidelines can change, so compare quotes early in your search.
Taxes and closing cost practices
Polk County property taxes affect your monthly payment. For assessments and tax details, use the Polk County Assessor. Oregon does not have a statewide real estate transfer tax. Your closing costs will include standard items like appraisal, title, escrow, and recording fees.
Shop lenders the smart way
Get at least three written Loan Estimates so you can compare rate, APR, and fees. The CFPB guide to Loan Estimates shows what to look for and how to line up offers side by side. Ask lenders about appraisal timelines, local processing times, and any stricter “overlays” beyond FHA, VA, or conforming rules.
Step-by-step: choose your best loan
- Verify eligibility
- VA buyers: request your COE through the VA or your lender.
- All buyers: check your credit, confirm income, and gather ID and documentation.
- Set your price range
- Review Polk County FHA and conforming limits, then compare with your target neighborhoods and home types.
- Gather documents for pre-approval
- Follow the checklist below so your lender can verify income, assets, and debts.
- Shop for terms
- Request multiple Loan Estimates. Ask about lender overlays, rate lock options, and estimated closing timeline.
- Compare true costs
- Look at total up-front cash, any funding fee or UFMIP, and long-term costs like PMI or MIP over the years you expect to own the home.
- Match loan to property
- If the home needs repairs, discuss renovation loan options or whether conventional guidelines will be more flexible.
Document checklist for pre-approval
- Government ID and Social Security number
- Last 2 pay stubs covering 30 days
- Last 2 years of W-2s and 1099s
- If self-employed: last 2 years of tax returns and year-to-date profit and loss
- Last 2 to 3 months of bank statements
- Asset statements for retirement or investment accounts if using to qualify
- Debt statements for student loans, auto, and credit cards
- Rental leases if using rental income
- VA buyers: DD-214 or COE, your lender can help you obtain the COE
Which option is cheapest overall?
There is no one-size-fits-all answer. If you qualify, VA is often the strongest value because there is no monthly PMI. FHA can be the easiest path into a home with a smaller down payment, but long-term MIP adds cost. Conventional can be the lowest total cost if you have strong credit and can avoid or remove PMI with higher equity. Run the numbers with your lender for the price point and timeline that fit your plans.
When you are ready to compare homes and craft a winning offer, connect with a local guide who knows Dallas and Polk County inside and out. Reach out to Wildland Property Group to talk through financing strategies, property options, and next steps.
FAQs
What are the main differences among FHA, VA, and conventional loans?
- FHA offers flexible credit and low down payment but includes up-front and annual mortgage insurance, VA serves eligible veterans with no PMI and often 0% down plus a funding fee, and conventional loans favor stronger credit with cancellable PMI.
How do I check Polk County loan limits before I shop?
- Use HUD’s FHA county loan limit lookup for FHA and the FHFA conforming loan limit tool for conventional limits.
Can a VA loan be used on any Dallas, OR home?
- VA loans work on most single-family homes and some condos, but the property must meet VA Minimum Property Requirements and condo projects need VA approval.
Can the seller help pay my closing costs in Dallas?
- Yes, within program rules. FHA, VA, and conventional loans allow seller-paid costs and concessions up to set limits, so confirm current caps with your lender.
How long does it take to close in Polk County?
- Many FHA, VA, and conventional loans close in about 30 to 45 days when appraisal and underwriting stay on track, though repairs required by FHA or VA appraisals can add time.
