In the state of Oklahoma, first time home buyers have several means of assistance to help procure a mortgage or pay for closing costs and down payment. Unfortunately, there aren't as many programs in Oklahoma as there are in other states. Nonetheless, diligent first time home buyers who know where to look can usually find something suitable for their needs. There are currently two programs listed at the state level as well as approximately half-a-dozen programs administered by counties and cities.
When you're searching for first time home buyer programs, be aware that many of these programs come with some strings attached. Many programs have minimum income requirements as well as a requirement to occupy the home as a primary residence for a specified amount of time. If you're not sure you can meet all requirements of a given program you're better off looking for something else. Not being able to meet your obligations after a mortgage has been granted could end up costing you a significant amount of money.
Oklahoma Home Financing Agency (OHFA)
In Oklahoma, the state entity responsible for housing administration is known as the Oklahoma Home Financing Agency, or simply OHFA. This agency helps to ensure the availability of affordable housing to all Oklahoma residents through a variety of programs. Financing for the Agency's programs comes through the sale of bonds which are then converted into funds for low and moderate income families. Currently the state only has two programs available. One is a fairly standard low interest mortgage program while the other helps section 8 voucher recipients convert vouchers into mortgage funds.
OHFA Advantage
OHFA Advantage provides a low interest home loan to qualified home buyers throughout the state. This is a fixed-rate, 30-year mortgage eligible for down payment assistance of up to 3.5% of the mortgage value. There are three separate loans under this program known as 1st Gold, OHFA Shield, and OHFA 4Teachers.
1st Gold is in the mortgage program most home buyers will qualify for; OHFA Shield is for police officers and firefighters; OHFA 4Teachers is for educators. In order to qualify for OHFA Advantage the borrower must have a minimum credit score of 620, meet income eligibility requirements, and purchase a home whose price falls within certain parameters in relation to its geographic location.
Section 8 Housing Choice Voucher Homeownership
Oklahoma offers a unique program aimed at section 8 voucher recipients. Section 8 is a qualification under federal law which allows low income earners to receive government assistance in making monthly rent payments. Under this program qualifying first time home buyers can convert their section 8 vouchers into funds to help make monthly mortgage payments. So far the program has helped more than 300 families purchase a first home in Oklahoma. In order to qualify for this program, borrowers must already be participating in Oklahoma's section 8 program and currently have a valid voucher.
Unfortunately, due to the large demand this program is only offered on a very limited basis. The OHFA websites currently states that no more applications are being accepted for this program in 2011. It's expected that the application process will be reopened sometime in 2012.
County and Local Programs
Even though Oklahoma only has two programs currently available at the state level, there are others administered by counties and local municipalities. Sometimes these first time home buyer programs come in the form of rehabilitation grants, down payment and closing costs assistance, or low interest loans designed to fill vacant houses and rehabilitate neighborhoods. The list below was obtained from HUD and is assumed to be up to date. There may be other county and local programs not included in this list.
- Grady County Homebuyer Assistance Program (HAP)
- Lawton Homebuyers Assistance Program (HAP)
- Midwest City Homebuyers Assistance Program (HAP)
- Multi Counties Community Action Resource & Development (CARD) Opportunity to Own Assistance Program (OAP)
- Multi Counties Ki Bois Community Action Foundation Inc Home Buyer Program (HBP)
- Multi County Community Action Project of Tulsa County Inc. First Time Home Buyer's Program (FTHP)
- Oklahoma City Down Payment/Closing Cost Program (DPCC)
- Oklahoma Community Action Agency of Oklahoma City and Oklahoma/Canadian Counties Inc Home Buyer Program (HBP)
- Oklahoma Housing Authority of the Peoria Tribe of Indians of Oklahoma Down Payment Assistance Program (DAP)
- Tulsa Housing Partners of Tulsa, Inc. First Time Homebuyers Program (FTHP)