The Basics Of An Fha Mortgage In Oklahoma

By Author: Lord Charley
Total Articles: 1
Comment this article

If you have ever thought about purchasing a home and have been discouraged by the fact that your Credit score might not be the best or your income might not be the highest? Well an Oklahoma FHA mortgage maybe just be the ticket to your homeownership dreams.

The Federal Housing Administration (FHA) is a government entity that was created in 1934 to help stabilize the housing market and encourage homeownership back during the Great Depression. There objective was to set a standard for the housing environment and to create a mortgage financing system that would help potential home buyers by insuring the loans they obtained with their lenders in case of a default (Foreclosure). In today's Oklahoma Mortgage market FHA mortgage programs provide a reasonable way for potential borrowers to get into homes. FHA has helped dramatically increased the amount of Oklahoma homeowners as well as homeowners all across the nation. In fact, according to the census bureau as of 2009 homeowners make up 67.2% of the nation's population, a very high percentage by historical standards.

Currently an FHA Mortgage in Oklahoma requires the ...
... borrower to contribute a down payment between 3-5% of the home value. FHA will even allow the down payment on purchase transactions to be gifted to the borrower from a relative or come from loan from their 401k/retirement account. Lenders usually overlook most credit issues on FHA loans for borrowers that have at minimum a 620 credit score. FHA home loans also allow borrowers that have a higher debt-to-income ratio then a regular conventional/conforming loan would. Even borrowers who have had bankruptcies in the past are able to get home financing through this program. The reason these guidelines are in place on FHA loan, is due to the added security for mortgage lenders of having the government insurance on the loan. This makes the borrower a lower risk in the eyes of mortgage lenders.

Oklahoma FHA loans are the most common mortgage product used by first-time home buyers because many young borrowers don't have the larger down payments required on conventional loans or the higher credit score restrictions. FHA loan are very commonly used by non first time home borrowers as well, but each borrower is only allowed to have one FHA mortgage loan at a time.

Of course you do have to qualify by meeting certain conditions. These include being able to contribute a down payment between 3-5% of the home value. Borrowers are also required to show proof that they have the necessary income to make monthly mortgage payments. Another FHA requirement is that a borrower must pay an insurance premium on their loan upfront that currently amounts to 1% of the loan total, but in most cases the 1% Up-Front FHA fee along with all other closing costs are financed into the loan. Thereafter, borrowers will pay 0.85% to 0.95% of the loan amount monthly as a form of monthly mortgage insurance for the government, a higher percentage than many conventional loan borrowers will pay.

If you can afford to make a sizable down payment, if you have excellent credit, or if you are looking for a home with a purchase price of $280,000 or a loan amount of $271,050 (FHA Max in Oklahoma), an FHA mortgage is almost certainly not the option for you. But if you are like most borrowers in this economy and need more help to buy a home, look into applying for an FHA loan to make owning a home a reality.

Jason Smith is a Tulsa Mortgage Loan Officer with ZFG Mortgage who specializes in helping clients getting the right Oklahoma Mortgage. With over 10 years of experience, Jason understands the Oklahoma Real Estate & Oklahoma Home Loan Industry.

ZFG Mortgage Oklahoma is Oklahoma's premier source for a: Oklahoma Mortgage, Tulsa home loans, OK Mortgage, Tulsa Mortgage FHA and refinance, mortgage in Tulsa Oklahoma. For more informations please visit our website.