Monday, 26 October 2020

Oklahoma First-Time Homebuyer Programs

Oklahoma First-Time Homebuyer Programs
01 Apr
4:39

Thinking about buying your first home in Oklahoma? There are a number of reasons you may be drawn to the Sooner State. Oklahoma boasts an economy dominated by its significant energy sector, and it’s also a major beef provider. Other big employers include the U.S. Department of Defense, Walmart, Native American tribal governments and healthcare and hospital management companies.

If you need financial help buying a home, there’s good news: Oklahoma offers assistance to first-time homebuyers in the form of down payment assistance grants for lower- and middle-income buyers, as well as discounted mortgage rates for teachers, firefighters and law enforcement personnel.

Oklahoma First-Time Homebuyer Programs of 2019

The Oklahoma Housing Finance Agency is the state organization that administers programs to help first-time homebuyers. It also assists renters, lenders, real estate agents and other parties with trade or consumer education and other services. Its aim is to make sure the state’s housing market is vibrant and offers opportunities for a wide variety of homebuyers.

OHFA Homebuyer Downpayment Assistance

What is it?

  • A grant (no repayment required) of 3.5% of the loan amount for down payment assistance. Products go by the name of Gold (for first-time homebuyers, though some exceptions may apply) and Dream (for any homebuyer).
  • Assistance may be combined with the Freddie Mac HFA Home Possible program, in which buyers may receive an additional $1,500 or $2,500 for closing costs, depending on income.
  • No review fee on the loan
  • Subject to recapture tax not to exceed 6.25% of the original mortgage or half of the profits gained on the sale of the home, whichever is less, if the following two criteria are met: You sell the home within nine years of purchase for a profit, and your income rises substantially during that time.

Requirements

  • Your credit score must be 640 or higher
  • Your income must not exceed income limits, which vary by county and household size
  • You must be a first-time homebuyer for Gold assistance
  • You must work with approved lenders

How to apply

To participate in the loan programs, start by contacting an OHFA Homebuyer Downpayment Assistance participating lender. They can determine your eligibility and help you apply.

Learn more

OHFA 4Teachers and OHFA Shield

What is it?

OHFA 4Teachers is a low-interest mortgage for licensed teachers in public and private schools. OHFA Shield is for law enforcement personnel, firefighters and EMS providers.

  • Provides access to a 30-year fixed-rate mortgage
  • Offers 25 basis points (0.25%) mortgage interest reduction off the daily fluctuating “gold” interest rate
  • Home can be new or existing construction, anywhere in the state of Oklahoma
  • Down payment assistance of up to 3.5% available
  • Subject to recapture tax not to exceed 6.25% of home’s sale price if the following two criteria are met: You sell the home within nine years of purchase for a profit, and your income rises substantially during that time.

Requirements

  • You must be a licensed public or private school teacher, law enforcement personnel, EMS provider or a firefighter, and you must provide certificates or credentials to prove it
  • You must live in the state of Oklahoma
  • Your credit score must be 640 or higher
  • Your income must not exceed income limits, which vary by county and household size
  • Your debt-to-income ratio cannot exceed 45% (for government loans) or 50% (for conventional loans)
  • Home purchase price limit is $276,100
  • The home must be your primary residence

How to apply

Your first step is to get in touch with a participating lender, who can determine your eligibility for the programs. You’ll need to show credentials confirming your employment status as a teacher, firefighter, EMS provider or law enforcement personnel.

Learn more

National first-time homebuyer assistance

In addition to Oklahoma’s first-time homebuyer programs, there are a number of federal loan programs that can help you buy the home of your dreams. For more details about the benefits and variety of these programs, take a look at LendingTree’s guide to national first-time homebuyer programs. (LendingTree owns MagnifyMoney.)

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Jane Hodges
Jane Hodges |

Jane Hodges is a writer at MagnifyMoney. You can email Jane here

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Source: https://www.magnifymoney.com/blog/mortgage/oklahoma-first-time-homebuyer-programs/

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