One of the biggest myths in homebuying is that you need 20% down. It's keeping a lot of good buyers on the sidelines unnecessarily. The path to homeownership in Salem is more accessible than most people think — and in 2026, there are more tools than ever to help you get there with less cash out of pocket than you expect.
Conventional Loans: As Low as 3% Down
Conventional loans through Fannie Mae and Freddie Mac allow down payments as low as 3% for qualifying first-time buyers. On a $420,000 Salem home, that's just $12,600 down. You'll pay private mortgage insurance (PMI) until you reach 20% equity, but many buyers are happy to trade that cost for the ability to own now and start building equity rather than continuing to rent. Once you hit the equity threshold, PMI drops off automatically.
FHA Loans: 3.5% Down with Flexible Qualification
FHA loans require just 3.5% down with a credit score of 580 or higher. They're popular with first-time Salem buyers because qualification standards are more flexible than conventional loans. The trade-off is mortgage insurance that stays for the life of the loan unless you refinance. FHA loans work well on Salem homes priced within the Marion County FHA loan limit — confirm current limits with your lender since they adjust annually.
VA Loans: Zero Down for Veterans and Active Military
Oregon has a significant veteran population, and VA loans remain one of the best financial tools available to anyone who has served. Zero down, no PMI, and competitive rates — it's hard to beat. Ty Hildebrand at Realty One Group works with VA buyers regularly and knows how to structure VA offers to be competitive in Salem's market, where sellers sometimes have misconceptions about VA transactions.
Oregon Bond and Down Payment Assistance Programs
Oregon Housing and Community Services (OHCS) runs the Oregon Bond Residential Loan Program, which offers below-market first mortgage rates and, in many cases, a cash assistance grant for down payment and closing costs. This can cover 3–5% of the purchase price for income-qualifying buyers. It is one of the most underused tools in the Salem homebuyer's arsenal.
Ty Hildebrand, who has 21 five-star Google reviews and over 400 properties sold across Salem OR at Realty One Group, has helped buyers purchase Salem homes with as little as $8,000–$10,000 total out of pocket: "The 20% myth keeps a lot of great buyers renting longer than they need to. Between Oregon down payment assistance, seller-paid closing costs, and smart loan structuring, we've gotten buyers into homes they thought were years away."
Don't let the down payment be the thing standing between you and ownership. Explore our buyers resources, browse featured Salem listings, and connect with Ty Hildebrand to figure out your real number.