FHA Loans

What Is An FHA Loan?

FHA loans are mortgages backed by the government agency, the Federal Housing
Administration (FHA). They are only offered by FHA-approved home loan lenders like Financial Concepts Mortgage. FHA loans are fixed-rate mortgages that come in 15- or 30-year terms. They are insured by Housing and Urban Development (HUD).

What It Can Do For You

There are many benefits of government-backed FHA loans compared to other loan programs. Here are a few of the biggest below. Our expert loan officers will help you decide which one is best for your situation. FHA loans are great for first-time homebuyers.

  • Lower down payments needed compared to most programs.
  • There’s a more streamlined process for refinancing.
  • Down payment gifts are accepted: a family member or other donor can give you money to cover part or all of your down payment.
  • FHA loans are assumable: transferred to another qualified homebuyer who purchases your home.

 FHA or Conventional?

FHA loans have a lot of benefits for homebuyers who may not qualify for a conventional loan. But, it’s important to understand both the benefits and drawbacks that come with FHA loans.

FHA loan benefits

  • Credit score requirements are lower than conventional loans
  • Lower down payment required than conventional loans
  • Easier qualifying guidelines than conventional loans
  • Higher acceptable debt-to-income (DTI) ratios than conventional loans

Fees and Costs

The minimum down payment needed for FHA loans will depend on your credit score. For homebuyers with a credit score of 579 and above, only a 3.5% down payment is needed. But, if your credit score is between 500-579, you will need a 10% down payment. Down payment gifts can only come from those outside the transaction. FHA does allow the seller to cover closing costs of up to 6% of the purchase price. This is often added to the purchase price, though. FHA does require homebuyers to pay for a mortgage insurance premium (MIP). The MIP is 1.75% of your loan amount and is often added to the total loan amount.

FHA Loan Requirements For Oklahoma

FHA home loan requirements for Oklahoma will differ from other states and will differ by county as well. Here are some of the Oklahoma FHA requirements to keep in mind.

  • Properties must meet the FHA’s safety, security, and structural integrity requirements.
  • You must have a credit score of at least 580; lower scores may qualify with a 10% down payment.
  • Your DTI ratio must be 43% or less, but can sometimes qualify up to 50%.
  • Your minimum down payment is 3.5%; for those with a credit score of 580 or above only.

We Can Help with an FHA Loan Application

Main Number: (405) 722-5626
Email: info@fcmortgageloans.com


Here at Financial Concepts Mortgage, we believe in offering a variety of loan types to make sure you get what you need. If an FHA doesn’t seem right for you, we can help you find the loan options that are most beneficial for your situation. It can be difficult to understand the differences between the many home loan types; we are here to answer any question you may have.

Although we primarily serve homebuyers in Oklahoma, we are also able to provide loans to anyone in Texas and Arkansas.