This is really a great time to buy a house! Prices are down, interest rates are at historic lows, and for a short time, first-time buyers can get $8,000 from the government for buying! Sure, lending requirements have gotten tougher, but there’s not shortage of mortgage money but you do need a 620 or better credit score. So the only thing that remains is that pesky down payment money. In Oklahoma, there are currently 5 programs to obtain assistance with down payment money:
- REI — Rural Enterprises, Inc. 2nd mortgage financing for the 3.5% down payment required by FHA. Has a 8.0% rate and 20 year term. Loan amounts are $2,500 to $5,500. Maximum payment of $46/month. Costs are $661 or less.
- OHFA Bond — Oklahoma Housing Finance Authority will have bond money available beginning 8.29.09. 3.5% down payment offered to qualified buyer. Projected 6.1% interest rate. Nine year recapture tax.
- OTAC — Oklahoma Tax Advance Credit Loan. A loan to borrower for closing until the customer receives their $8,000 tax credit. This is a 2% interest rate for 5 years. Maximum loan is $6,000. Maximum payment estimate is $102.00.
- IDA — Individual Development Account. Community Action will give a borrower 2 for 1 in funds for down payment. If a borrower gives IDA $1,000, the IDA program will give them $2,000 in additional funds to use for down payment towards a home, giving the borrower $3,000 total to use to purchase a home. $2,000 will gross $6,000.
- Neighborhood Housing — Homebuyer program will give up to $6,000 for qualified homebuyers.
All programs are subject to availability. All programs have to be registered for availability of funds, upon receipt of and accepted real estate contract. All programs require a credit score of 620 or greater.
Please feel free to call or email anytime if you have questions.