There is one thing OU and OSU fans can agree on regardless of which side of the Bedlam rivalry they’re on: Oklahoma is a great place to live. The problem is, in order to buy a home you need to decide on a financing package, and choosing the right home loan can be a little overwhelming, especially for first-time homebuyers.
Many Oklahoma residents choose an FHA Loan, because buyers are typically able to finance their homes with a smaller down payment than conventional loans. See more ways why an Oklahoma FHA loan may be right for you.
Why Consider an FHA Loan in Oklahoma
Oklahoma is a great place to buy a home due to its relatively low cost of living when compared to the rest of the country. To buy their home, many residents are turning to Oklahoma FHA loans as their preferred mortgage option. The total value of FHA loans in Oklahoma was $145 million as of April 2019!
Benefits of using an FHA Loan in OK
- FHA loans are great for first-time homebuyers, especially those who can’t or don’t want to put down a large down payment.
- FHA mortgage rates are typically lower than conventional mortgage rates.
- FHA down payment and credit score requirements are typically lower than conventional loans
- Sellers can contribute up to 6% of the purchase price or appraised value (whichever is less) towards the buyers’ closing costs.
- FHA loans are assumable
FHA Loan Limits in Oklahoma
FHA maximum loan limits typically depend on which county you live in, and are adjusted annually. Oklahoma is unique, and the baseline limit of $314,827 applies statewide.
Are You Eligible for an FHA Loan in OK?
You may be eligible for an FHA loan, if you:
- Have 2 years of steady employment, preferably with the same employer.
- Have had steady income (or increasing income) in the past two years.
- Have had less than two 30 day periods of late payments on your credit report.
- Have declared bankruptcy no less than two years ago and have maintained good credit since.
- Have not been a party in a foreclosure for at least three years and have maintained good credit since.
- Anticipate your mortgage payment will be equal to or less than 30% of your gross income.
What Do You Need to Apply for an FHA Loan in OK?
Buyers must be able to provide the following information and documents as requested by lenders:
- The addresses of all your residences over the past two years.
- The names of your employers over the past two years.
- W2's for the past two years and current paycheck stubs.
- Your current gross monthly salary.
- Your Social Security Number.
- Names, addresses, and account numbers with balances on all checking and savings accounts.
- Addresses and loan information of any other real estate you owned.
- Self-employed individuals will need to provide personal tax returns for the past two years and a current income statement and balance sheet for the business.
- Students will need to provide evidence of enrollment. If you have student loans, you need to provide verification information.
Note: Facts and figures sourced from the latest statistics available at the time of this writing including data from the United States Department of Labor, United States Census Bureau and the United States Department of Housing and Urban Development.