Last Updated on August 23, 2023 by Hannah Stevens
Mortgage Assistance for Homebuyers in Oklahoma
The Homeownership Program
The eight-hour Homeownership Program course is divided into three sessions: Credit Counseling, Orientation, Homebuyer Education and Credit Counseling. Then after completing the course, applicants may be eligible to receive down payment assistance from Housing Partners of Tulsa, Inc.
Housing Partners of Tulsa, Inc. may be able help first-time homebuyers after they have completed the Homebuyers Education classes. However, this portion of the purchase price can go towards the down payment or closing costs.
All applicants who apply for assistance funds must be first-time buyers and have not purchased a primary residence within the last three years. They also need to contribute 1% of their purchase price. Then, the annual household income of the applicant must be below a certain limit.
The home must be within Tulsa’s city limits and the primary residence of the buyer if it is to be purchased with assistance funds. The property must pass the HOME/COT Code Inspection, a Lead-based Paint Inspector if applicable, as well as fall within the following price limits.
For existing homes:
- 1-unit: $147,000
- 2-unit: $188,000
- 3-unit: $228,000
- 4-unit: $283,000
For new constructions:
- 1-unit: $227,000
- 2-unit: $291,000
- 3-unit: $352,000
- 4-unit: $436,000
- 1-person household: $39,050
- 2-person household: $44,600
- 3-person household: $50,200
- 4-person household: $55,750
- 5-person household: $60,250
- 6-person household: $64,700
- 7-person household: $69,150
- 8-person household: $73,600
Oklahoma City offers a City Down Payment Assistance program designed to help qualified applicants offset upfront costs of buying a house.
DPA assistance is provided as a forgivable loan that must not exceed $14,999.00 per household. The real amount is determined on a case by case basis, according to the financial needs of the homebuyer, and the City’s acquired underwriting standards. The assistance may cover the eligible closing costs and down payments. Moreover, the homebuyer will not receive any assistance at closing or at any other time.
Only households earning less than or equal to 80% of the Area Median income (AMI) are eligible for assistance. The qualification is based on the household size for the Oklahoma City MSA, as determined by the HUD each year. Every household receiving assistance must contribute financially to the purchase of the house. The DPA recipient must invest 1% of the sale price. This can also be in any form: earnest money, appraisals, credit reports, out-of-pocket expenses, etc. Furthermore, the FHA loan will raise the financial participation to 1.75%. Over $15,000 liquid assets must be used to purchase the home, as practicable.
This is similar to the Down Payment first-time homebuyer assistance programs in Ohio.
Homebuyer Assistance offers down payment and closing cost assistance (DPA) to individuals and families who have eligible income.
There are two programs which provide DPA in different areas:
- The Oklahoma City HOME program provides coverage up to $14,999.
- The Oklahoma/Canadian counties HOME program provides coverage up to $14,249.
Assistance for down payment and closing cost are given as a forgivable second mortgage without monthly payments. This second mortgage can only be forgiven once the buyer has lived in the home for a seven-year affordability period for Oklahoma City. It also applies for a five-year affordability period for Oklahoma and Canadian Counties. The assistance funding must be refunded in full or prorated if the property is sold, sub-leased, refinanced or transferred to someone else before the affordability period ends. Furthermore, the buyer could be required to repay the assistance in whole or in part if the home is sold, sub-leased, refinanced, or ceases to be the primary residence during the affordability period. However, the loan can be forgiven 100% if the buyer uses the home as their primary residence during the affordability period.
In order to apply, applicants must be U.S. citizens, or have a Permanent Resident card. They must also be able to meet the HUD Low/Moderate Housing Income Guidelines (subject change), and finish an HUD Certified Homebuyer Education Workshop. Moreover, they must have the ability to meet credit and loan requirements to get their first mortgage. The buyer must contribute 1% to 1.75% of their own money for the purchase.
The purchase price cannot exceed:
- Oklahoma City and County: $147,000 for existing properties, $238,000 for new construction.
- Canadian County: $157,000 for existing properties, $238,000 for new construction.
The property must be within the designated funding zones. This program does not apply to properties located in FEMA-designated 100 year flood zones or floodways. Other environmental requirements may also apply. Before closing, property must pass the Housing Quality Standard (HQS), Inspection.
Oklahoma Housing Finance Agency (OHFA) offers down payment assistance to help residents get affordable and safe housing.
The OHFA Homebuyer Assistance Program helps homebuyers purchase a home. OHFA provides a 3.5% down payment assistance on the entire loan amount for your home purchase. Thus, it requires less money at closing. However, this assistance may only be used on 30-year fixed-rate mortgage loans. The qualified loan types include FHA, USDA-RD, VA or Conventional. Furthermore, based on the selected product, the income and purchase price limits may vary.
- All applicants must be U.S. citizens.
- The applicants need to purchase a house within Oklahoma.
- The applicant will use the home as their primary residence, and they must occupy it within 60 days of closing.
- Maximum household income requirements depend on the size of the family and the location of your home.
- The applicant must have a 640 middle credit score or greater.
The REI Down payment Assistance program, in partnership with participating lenders, offers eligible homebuyers with closing cost and down payment assistance. This program is for low-income borrowers who can afford monthly mortgage payments, but do not have sufficient funds to pay a down payment.
The assistance is a gift that borrowers do not have to repay. There are also no requirements to repay the amount in the case of a sale or refinance. There are also no requirement for the homebuyer to occupy the house for a specific number of years. So, it is truly a gift.
Borrowers may use the REI Down Payment Assistance program in conjunction with various first mortgages, such as FHA, VA, Rural Development, Fannie Mae HFA Preferred, Freddie Mac HFA Advantage loans, and HUD Section 184. The down payment assistance gift is calculated based on the first mortgage amount. It can range between 3.5 to 5% of the total first mortgage amount. Additionally, homebuyers can use these funds to pay 100% of their cash requirements to close. This includes down payment, closing costs, prepaid items, and other fees related to mortgage.
All borrowers need to meet specific requirements in order to qualify for the REI Down Payment Assistance Program. The applicant must also be within the income limit set by the program. It is based on household size and qualifying income. Moreover, no matter what type of mortgage they choose, applicants must have a minimum credit score of 640, and a debt-to-income ratio 45%. The applicants need to use the property purchased as their primary residence of the applicants. Additionally, borrowers of Fannie Mae HFA Preferred can’t have an individual or joint ownership interest in any residential property.
Are you interested in the First-Time Homebuyer Assistance Programs in Oregon?