Get Help with Your Down Payment for Your Home
If you’re like many potential homebuyers in Oklahoma you may not be able to afford a traditional down payment. A down payment assistance (DPA) loan is designed to help homebuyers reduce the amount of money they need to save for a down payment. You can combine a down payment assistance loan with another mortgage to help you cover a down payment or closing costs. DPA programs are usually available on a state, county, or city level, with each having its own terms and requirements. Financial Concepts Mortgage is here to help you apply for down payment assistant programs in Oklahoma. Get in touch with us today to learn more or speak with one of our loan officers.
Is a Down Payment Assistance Program Right for Me?
DPA loans are typically reserved for first-time homebuyers. However, previous homebuyers may also qualify as first-time homebuyers if they have not owned a home in the past three years. Certain DPA programs are designed for specific groups of people, including police officers, teachers, city employees, and emergency responders. The financial experts at Financial Concepts Mortgage are here to help you determine if FHA down payment assistance is a good fit for you.
Types of Down Payment Assistance Loans
There are many types of loans available through down payment assistance programs. Our expert loan officers would be happy to help you review the DPA programs available based on where you live in Oklahoma, Texas, or Arkansas. Learn more about the types of down payment assistance loans available:
- Grants – Some local programs offer grants that do not require repayment.
- Low-Interest Loans – Obtain a second mortgage that you pay with your primary mortgage over a set period of time. These loans spread your down payment and closing costs out over multiple years, making buying a home more affordable.
- Zero-Interest, Forgivable Loans – A second mortgage that is forgiven over a set period of time, often five years. You’re required to repay the loan if you sell, move, or refinance before the forgiveness period has ended.
- Zero-Interest, Deferred Payment Loans – This second mortgage only requires you to repay upon selling, moving, or refinancing your home.
DPA Program Requirements
When applying for down payment assistance, you typically must meet the following requirements to obtain a loan:
- Taking a homebuyer education course
- Having an income below a certain threshold
- Buying a home in an approved location that will be your primary residence
- Purchasing a home below the maximum purchase price
- Contributing some of your own money toward the purchase of the home
Down Payment Assistance Loans in OK, TX, & AR
Financial Concepts Mortgage is licensed to provide DPA loans in Oklahoma, Texas, and Arkansas. Each state has its own programs and requirements. We’ve highlighted the first-time homebuyer down payment assistance programs for each state below, but there are others we can help you find as well:
- Oklahoma Housing Finance Agency (OHFA) Down Payment Assistance Program – This program provides 3.5% of the total loan amount at closing and can be used for FHA, USDA-RD, VA, or conventional loans. OHFA can be used for a home priced up to $453,100 in all 77 counties. Teachers, first responders, and Oklahoma state employees get special rates, and loans are limited to 30-year fixed-rate mortgages. Visit OHFA for more information on Oklahoma’s housing programs.
- Texas Affordable State Housing Corporation (TSAHC) Home Sweet Texas Home Loan Program – Texas down payment assistance provides up to 5% of the loan amount. You don’t have to be a first-time homebuyer for dPA, and the loan may be given as a forgivable second mortgage or grant, which is never repaid. All loans are limited to 30-year fixed-rate mortgages. Visit TSAHC for more information on Texas’ housing programs.
- Arkansas Development Finance Authority (ADFA) Down Payment Assistance Program – ADFA provides $1,000 to $10,000 toward closing costs. This is a second mortgage that matches the first on a 10-year term. Borrowers get cash back for expenses paid outside closing (POC). Visit ADFA for more information on Arkansas’ housing programs.
Prequalify For a Down Payment Assistance Loan Today
If you’re ready to take the next step toward owning your dream home, you can apply for a down payment assistance loan in Oklahoma, Texas, or Arkansas online or over the phone. For more information about the various loans we offer, please contact us or visit us at one of our four convenient locations in Central Oklahoma. Our team is here to walk you through the process and answer any questions you might have.