First-Time Homebuyer Programs in Oklahoma

The down payment on a new home is often the biggest hurdle for first-time homebuyers. In Oklahoma, with an average home value of $205,646, a down payment of $41,129 is required to avoid private mortgage insurance.

Fortunately, first-time homebuyer programs in Oklahoma can help you achieve homeownership. Some mortgages allow first-time buyers to put less down, but these typically have income requirements and require mortgage insurance. MoneyGeek explores several state-specific and government-backed first-time homebuyer programs for people from different financial backgrounds.

Oklahoma offers grants and loans to assist first-time homebuyers with down payments and closing costs. Below, we have compiled the first-time homebuyer programs offered by the Oklahoma Housing Finance Agency (OHFA) to help you find the best option for your particular needs and situation.

OHFA’s Gold Loan Program provides first-time homebuyers with access to affordable government or conventional loans. While the program is primarily for first-time buyers, exemptions apply in targeted areas, which are identified based on specific census tracts. The program caps purchase prices at $349,525 in non-targeted areas and $427,198 in targeted areas. Certain professions, like teachers and law enforcement, may qualify for a special interest rate. To avail of mortgage loans, applicants must meet income limits based on county and family size.

The Dream Loan Program provides affordable mortgages to Oklahoma residents for primary residences, allowing buyers to own other properties. It includes both government and conventional loan options with specific limits: a statewide maximum purchase price of $356,362 for government loans and $453,100 for conventional loans. The program allows up to $150,000 annual income for government loans, while conventional loans have county-specific income limits.

OHFA's Down Payment and Closing Cost Assistance program offers Oklahoma homebuyers up to 3.5% of the total loan amount to help cover down payment and closing expenses. This assistance is provided as a "silent second" mortgage, meaning it is a zero-interest loan with no monthly payments and must be repaid upon sale, refinance or if the home ceases to be the primary residence. Buyers work with participating lenders to apply, and OHFA places a lien on the property for the assistance amount.

Aside from statewide first-time homebuyer programs in Oklahoma, there are also city-specific programs available to help you pursue homeownership in a city of your choosing. Check out the table below for some of the cities in Oklahoma that provide first-time homebuyer programs for potential residents.

In Oklahoma, there are zero-down-payment loan programs that allow you to purchase a home without putting money down. USDA and VA loans are two government-backed options that come with no down payment.

USDA loans are designed to assist homebuyers in rural areas. They are issued by the U.S. Department of Agriculture through its Rural Development Guaranteed Housing Loan program.

USDA loans offer several benefits, including low interest rates and zero down payments. They are intended to make homeownership more accessible for those who might not qualify for conventional financing. The program also provides flexible credit guidelines to help more families achieve homeownership.

Eligibility for USDA loans requires the property to be 2,000 square feet or less and located in a USDA-eligible rural area with a population under 35,000. Additionally, there are income limits based on location. For example, in Blaine County, Oklahoma, the income limit is $60,000, while in Noble County, Oklahoma, it is $67,100 for a four-person, low-income household.

VA loans are a type of mortgage issued by the U.S. Department of Veterans Affairs and are designed to help veterans, active-duty service members and eligible surviving spouses become homeowners.

VA loans offer several advantages, including the absence of a down payment requirement. They also do not require private mortgage insurance (PMI), which can save borrowers a significant amount of money over the life of the loan. Additionally, VA loans generally have lower interest rates compared to private loans. As of November 2024, the current APR for a 15-year fixed-rate VA loan is 6.24%, while a 30-year fixed-rate VA loan stands at 6.37%.

To be eligible for a VA loan, you must meet specific requirements related to your length of service or service commitment, duty status and character of service. You must also meet certain income limits depending on where you live and provide a valid certificate of eligibility (COE).

First-time homebuyers in Oklahoma can take advantage of low-down-payment loan programs that allow them to finance their home with a down payment of 3.5% or less. These programs include conventional, FHA and FHA 203(k) loans.

FHA loans and conventional loans are the two most common types of mortgages. FHA loans require a minimum down payment of 3.5%, making them accessible for buyers with limited savings. Conventional loans can require as low as a 3% down payment for first-time homebuyers but generally have stricter credit score and debt-to-income ratio requirements than FHA loans.

Interest rates are another important factor to consider. As of November 2024, the current APR for a 15-year fixed-rate conforming loan in Oklahoma is 6.03%. In comparison, the APR for a 15-year fixed-rate FHA loan is 7.58%. APRs on FHA loans can be higher due to the additional fees and costs associated with government-backed loans.

Use our FHA vs. conventional loan calculator below to help you compare both FHA and conventional mortgage programs and determine the best option for you.

We have answered some frequently asked questions about first-time homebuyer programs in Oklahoma to help you identify the best option and move closer to achieving homeownership.

Explore additional MoneyGeek resources for first-time homebuyers in Oklahoma to help you with the homebuying process.