First Time Home Buyer Oklahoma

First Time Home Buyer Oklahoma

First Time Home Buyer Oklahoma

First Time Home Buyer Oklahoma

First time home buyer Oklahoma information and resources that will help you with buying your first home in Oklahoma.

Home prices in Oklahoma are rising, indicating a strong degree of interest in homeownership in the state, which is recognized for its gorgeous mountain ranges, flat fertile plains, and bustling metros.

If you’re a first-time home buyer looking to get into the Oklahoma real estate market, there are services available to assist you.

The Oklahoma Housing Finance Agency, the state’s public housing agency, provides low-cost mortgages and down payment assistance to homeowners in all 77 counties.

First-Time Homebuyer Lending Programs in Oklahoma

OHFA mortgage programs

The Oklahoma Housing Finance Agency (OHFA) may connect first-time and repeat homeowners with conventional or government-backed 30-year fixed-rate mortgages.

With these loans, borrowers in certain professions, such as teachers, first responders, and state employees, have access to down payment help and competitive interest rates.

There are two primary initiatives:

➣ OHFA GOLD program – The OHFA GOLD loan program provides financing only to first-time homebuyers, defined as buyers who have not owned a house within the prior three years.

The GOLD program offers two types of loans: the GOLD Freddie Mac HFA Advantage conventional loan and the GOLD government loan, which may be an FHA, VA, USDA, or Section 184 loan.

➣ OHFA DREAM program – The OHFA DREAM loan program offers financing to first-time and repeat buyers through two loan types:

The DREAM Freddie Mac HFA Advantage conventional loan.

The DREAM government loan, which can be an FHA, VA, or USDA loan, or a DREAM ZERO loan with a low interest rate and other benefits.

There are also three mortgage rate reduction programs for teachers and other state employees:

➣ OHFA 4Teachers program – According to the OHFA website, certified public and private school teachers in Oklahoma can acquire a “special rate” on a house loan through the OHFA 4Teachers program.

➣ OHFA Shield program – The OHFA Shield program offers mortgages with discounted interest rates to police, firefighters, and emergency medical professionals.

This comprises EMTs, paramedics, and municipal and volunteer firefighters, as well as law enforcement personnel and police officers.

➣ State Employee program of Oklahoma – State government employees may also qualify for a mortgage with a reduced interest rate through OHFA. To be eligible, you must be an employee of a state agency.

All of these schemes have general borrower and property restrictions, including:

➣ a minimum credit score of 640 (depending on debt-to-income ratio and loan type)

➣ 45 to 50 percent maximum debt-to-income ratio (depending on loan type)

➣ Must satisfy OHFA income requirements, which vary by loan program.

➣ Must be located in Oklahoma

➣ Must be the primary abode

➣ Must satisfy OHFA purchase price restrictions, which vary by loan program

Assistance for Oklahoma down Payment

OHFA Down Payment Support

In addition to 30-year fixed-rate mortgages, OHFA offers down payment and closing cost assistance of up to 3.5%. The support is a gift for which no repayment is required.

There are income and purchase price restrictions depending on whether you’re borrowing through the GOLD or DREAM program and the type of financing you’re getting.

REI Home100

The REI Home100 program, offered by the non-profit REI Oklahoma, provides qualifying borrowers with a 30-year, fixed-rate conventional or government loan and down payment assistance.

If eligible, you will get the down payment funds in the form of a gift or a forgivable seven-year second mortgage for up to 5 percent of your loan, depending on the type of loan your first mortgage is.

You are not required to be a first-time homebuyer to qualify, but you must complete a homebuyer education course if you are a first-time buyer and seeking an HFA Advantage or HFA Preferred loan. Other conditions include:

➣ 640 credit score minimal

➣ 45 percent maximum debt-to-income ratio

➣ Income limitations for REI Oklahoma loans vary by loan type.

➣ Must use an authorized mortgage lender

Additional Lending Programs for First-time Homebuyers

First-time homebuyers may find homeownership more achievable through government loans such as FHA, VA, and USDA mortgages, which provide more flexible terms and interest rates.

In addition to OHFA and other state and local organizations, your mortgage lender can help you navigate these and other assistance programs for which you may be eligible.

First Time Home Buyer Oklahoma Conclusion

When you are ready to begin the home loan application process, an Oklahoma Housing Finance Agency (OHFA)-participating mortgage lender can assist you in determining your options.

While OHFA does not offer mortgages directly, it collaborates with more than 50 lending institutions throughout the state.

The terms and interest rates of mortgages might vary significantly from one lender to the next; therefore, you should compare mortgage rates and offers to discover the best fit.

What credit score do I need to buy a house in Oklahoma?

Eligibility requirements Must have a credit score of at least 640. Must meet income and purchase price limits. Must reside in Oklahoma and plan to occupy the home as a primary residence.

What is the average down payment on a house in Oklahoma?

Oklahoma City’s statistics were promising: Average down payment amount: $28,777. Average down payment percentage: 10.7%

Who pays closing costs in Oklahoma?

Buyers and sellers in Oklahoma pay an average of $381.83 in tax combined for the closing. This accounts for 12.97% of the total average closing cost in Oklahoma.

What kind of loan can I get with a 700 credit score?

With a 700 score, you’re likely to qualify for a conventional loan with cheaper mortgage insurance and an even smaller down payment. There are just a couple exceptions to that rule: If you have higher debt, an FHA loan might be better. FHA can be more forgiving of a high debt-to-income ratio.

What credit score is needed to buy a house with no money down?

No down payment is required for VA, USDA and doctor loan programs detailed above. What credit score do I need to buy a house with no money down? No-down-payment lenders usually set 620 as the lowest credit score to buy a house.

How much do I need to make to afford $200,000 house?

What income is required for a 200k mortgage? To be approved for a $200,000 mortgage with a minimum down payment of 3.5 percent, you will need an approximate income of $62,000 annually. (This is an estimated example.)

What is an FHA home loan?

An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. FHA home loans require lower minimum credit scores and down payments than many conventional loans, which makes them especially popular with first-time homebuyers.

How long does it take to close on an FHA loan?

When you apply for this type of mortgage, the underwriter will make sure that your application meets both the lender’s standards as well as the standards set forth by the FHA. FHA loans take an average of 55 days to close. For home purchases, the average is 54 days. For refinances, it’s 59 days.

How much money should I save before buying a house?

You may find as you start shopping for financing that many mortgage companies recommend you put at least 20 percent down.

How much money do you need to buy a house for the first-time?

You’ll typically need at least 3 percent of the purchase price of the home as a down payment. Keep in mind that you’ll need to put at least 20 percent down to avoid having to pay for mortgage insurance, however. Don’t let the mortgage insurance cost scare you, though.

How hard is it to buy a house for the first-time?

Most major lenders require a credit score of at least 620 to qualify for a conventional loan. And borrowers typically need a credit score of 740 or higher to qualify for the best mortgage rates, Boomer says. Pro tip: To ensure your credit is in tip-top shape, Boomer recommends checking your credit report for errors.

How long does it take to close on a house in Oklahoma?

As of May 2022, the average time it takes for homebuyers to close on a home purchase is 47 days, and 44 days for refinancing, Ellie Mae reports.

What are closing cost in Oklahoma?

In Oklahoma, closing costs usually amount to around 0.9% of a home’s sale price, not including realtor fees. With a median home value of $176,302, sellers can expect to pay around $1,540 at closing.

How many months of property taxes are collected at closing in Oklahoma?

Initial Escrow Payment at Closing Initial Escrow Payment = 2-months of homeowner’s insurance + 2-months property taxes.

Can I buy a house if I make 45000 a year?

It’s definitely possible to buy a house on a $50K salary. For many borrowers, low-down-payment loans and down payment assistance programs are putting homeownership within reach. But everyone’s budget is different. Even people who make the same annual salary can have different price ranges when they shop for a new home.

What is the minimum down payment for a conventional loan?

Conventional loan down payment requirements The minimum down payment required for a conventional mortgage is 3%, but borrowers with lower credit scores or higher debt-to-income ratios may be required to put down more.

How much house can I buy for $900 a month?

A payment of $900 would have a mortgage balance of $191,976. If you include your monthly taxes, insurance and mortgage insurance payment of $300 a month, you now have a payment of $1,200 a month.

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