Oklahoma down payment assistance programs are federal or state-backed programs aimed at enabling first time home buyers to achieve their dreams of buying a residential property. Down payment assistance program assistance in Oklahoma defines first time home buyer as someone who hasn’t owned a property for the last three years. The federal program backed government works with listed lenders to help qualifying residents of Oklahoma raise money towards buying properties to be used as primary residence. Borrowers are advised to check with participating lenders and find out about their eligibility.
To benefit from down payment assistance programs, the applicant’s income and credit must be within specific ranges. The applicant must be buying a home for the first time and should meet the eligibility requirements to get a mortgage through a mortgage company or a bank in Oklahoma. The house buyer must be able to provide a low down payment of the home’s sales price especially if applying for FHA financing.
Also, the buyer should reside in the purchased house and make it his or her primary residence for a minimum period of five years. Attending a Homebuyer Education Workshop may or may not be mandatory.
Below is a list of Down Payment Assistance Programs available in Oklahoma:
No Down Payment Mortgages – mortgages that require no down payment
USDA Rural Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.
Low Down Payment Mortgages – mortgages that require up to 3.5% down payment
FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.
Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.
The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.
Oklahoma Down Payment Assistance Programs
OHFA 4 Teachers Program OHFA 4 Teachers is exclusive to educators who are first time home buyers. The low interest rate program offers a Oklahoma down payment grant of 3.5 percent of the loan amount. The maximum purchase price is $214,925. A Oklahoma borrower must have an Oklahoma teachers certificate and be employed at any Oklahoma public school district or accredited private or parochial school. Other employees of the school system whose jobs require certification may also be eligible.
OHFA Dream Program While no stringent first time buyer requirement, the Dream Program offers a grant worth 3.5 percent of the loan amount for Oklahoma down payment assistance. The maximum purchase price is $270,975, which is the highest limit of all the OHFA programs.
OHFA Gold Program This Oklahoma down payment program has a first time buyer requirement. Similarly to the Dream Program, 3.5 percent of the loan value will be awarded as a Oklahoma down payment assistance grant. The maximum qualifying purchase price is $214,925.
The US Department of Housing and Urban Development (HUD) offers the following programs:
The Good Neighbor Next Door Program was created by U.S. Department of Housing and Urban Development (HUD) to help law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians buy homes. The biggest benefit of the Good Neighbor Next Door Program is the 50% discount of the home’s list price. The only catch is that the home owner must commit to live in the property for 36 months as their sole residence.
To learn more about the Good Neighbor Next Door Program, click here.
The Section 184 Indian Home Loan Guarantee Program is a mortgage for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. In 1992 Congress created this program to help Native American Communities with homeownership.
Section 184 loans helps borrowers buy homes with a low down payment and flexible underwriting. Moreover, the loan does not need to be used only on properties on native lands. Purchase of an existing home for single-family residences. Also allowed are new construction, rehabilitation, and refinance.
To learn more about Section 184, click here.
Oklahoma Housing Agencies
Oklahoma housing agencies are your best resource for down payment assistance programs. Through funding from HUD, the purpose of these agencies is to ensure that affordable housing is available for everyone.
- Stillwater Housing Authority
- Afton Housing Authority
- HA of the Apache Tribe of Oklahoma
- Cheyenne Housing Authority
- Housing Authority of the City of Shawnee
- Commerce Housing Authority
- Oklahoma City Housing Authority
- Oklahoma Housing Authority
- Seminole Housing Authority
- Tulsa Housing Authority
- Oklahoma Housing Finance Agency