An exciting change to the income limits for Fannie Mae’s Home Ready loan program means that many borrowers who could not afford a home in Oregon under the previous limits have another shot at homeownership.

The skyrocketing prices of the early 2020s have leveled out somewhat—homes are sitting on the market and home values rose less than 2% in 2025. The average market value of a home in Oregon is still over half a million, and with mortgage rates nearly double what they were in early 2022, many buyers find it very difficult to enter the market.

Home Ready was initially developed with the low-moderate income borrower in mind. A borrower can qualify with as little as 3% under very flexible terms, so long as their household income does not exceed 80% of the Area Median Income where they buy their home. Changes which took effect in June raised limits which had not kept pace with the cost of housing. Using the Area Median Income lookup tool, you can see that the Home Ready limit in Salem on the Marion County side is $82,720. A buyer will not qualify for a half million-dollar home on that income without a significant down payment and with no other debt, but a starter home or a condo is a real possibility.

Home Ready offers many advantages:

• Down payments as low as 3%.
• Reduced Mortgage Insurance requirements for loan-to-value above 90%.
• Non-occupant co-borrowers permitted.
• Gifts, grants, cash-on-hand, and Community Seconds are all permissible sources for the down payment, and there is no minimum contribution from the borrower.
• Mortgage Insurance is cancellable once criteria are met.

Questions? Ask one of our Real Estate Loan Specialists by calling 503-588-0211, option 4 or schedule a call here.

Written by: Elena Christian

Want to learn more – check out additional educational resources here.

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Back to Basics – Homeownership FAQs
The Steps to Preparing to Buy Your First home – And Why it Matters in the End
Mortgage Insurance: The Best Thing Since Sliced Bread?