Oklahoma First-Time Home Buyer: 2024 Programs and Grants

What to know about buying a house in Oklahoma

As an Oklahoma first-time home buyer, you’re in a relatively lucky position. Average home prices statewide are substantially lower than in most other states.

Not to mention, Oklahoma has special programs to help first-time home buyers who need an extra hand saving up to buy a home. The state and other organizations offer special mortgages, homebuyer education courses, and sometimes even cash toward your down payment. Here’s what you should know about becoming a homeowner in the Sooner State.

In this article (Skip to ...)

• OK home buyer overview
• Home loan options
• OK home buyer programs
• First-time buyer grants
• Buying in Oklahoma’s cities
• Resources
• OK mortgage rates

Oklahoma home buyer overview

The median list price in Oklahoma was $238,200 in February 2024, according to Redfin. That rose 7.3% year-over-year.

Housing inflation can make it difficult for first-time home buyers to save enough for a down payment and closing costs. So read on to discover programs that might provide you with cash assistance.

Oklahoma home buyer stats

Down payment amounts are based on the state's most recently available average home sale price. "Minimum" down payment assumes 3% down on a conventional mortgage with a minimum credit score of 620.

If you're eligible for a VA loan (backed by the Department of Veterans Affairs) or a USDA loan (backed by the US Department of Agriculture), you may not need any down payment at all.

First-time home buyer loans in Oklahoma

If you’re a first-time home buyer in Oklahoma with a 20% down payment, you can get a conventional loan with a low interest rate. And you never have to pay for private mortgage insurance (PMI).

Of course, few first-time buyers have saved enough for 20% down. But the good news is that you don’t need that much. Not by a long shot.

Borrowers can often get into a new home with as little as 3% or even 0% down using one of these low-down-payment mortgage programs:

• Conventional 97: From Freddie Mac or Fannie Mae. 3% down payment and 620 minimum FICO score. You can usually stop paying mortgage insurance after a few years once you reach 20% home equity
• FHA loan: Backed by the Federal Housing Administration. 3.5% down and a 580 minimum credit score. But you’re on the hook for mortgage insurance premiums (MIP) until you refinance to a different loan type, move, or pay off your loan
• VA loan: Only for veterans and active-duty service members. Zero down payment is required. Minimum credit score varies by lender but often 620. No ongoing mortgage insurance after closing. These are arguably the best mortgages available, so apply if you’re eligible
• USDA loan: For those on low-to-moderate incomes buying in designated rural areas. Zero down payment required. Credit score requirements vary by lender but often 640. Low mortgage insurance rates
• Oklahoma Housing Finance Agency loans: May include mortgage credit certificates (MCCs) and generous down payment assistance. More information below

Note that government loan programs (including FHA, VA, and USDA home loans) require you to buy a primary residence. That means you can’t use these loans for a vacation home or investment property.

In addition, most programs let you use gifted money or down payment assistance (DPA) to cover your down payment and closing costs. Depending on your mortgage loan, you could potentially get into a new house with minimal cash out of pocket.

If you’re unsure which program to choose for your first mortgage, your lender can help you find the right match based on your finances and home buying goals.

Oklahoma first-time home buyer programs

The Oklahoma Housing Finance Agency (OHFA)⁴ offers two types of mortgages: Gold and Dream.

• OHFA Gold program: Requires you to be a first-time home buyer (unless purchasing in a targeted area). Can be used with conventional and government loans
• OHFA Dream program: Available to first-time and repeat buyers. Can be used with conventional and government loans

To qualify for a Gold mortgage, you must:

• Have an income below a cap that varies from county to county and by household size.
• Choose your lender from a list⁵ of those approved by the OHFA
• Have a credit score of 640 or higher
• Live in the home as your principal residence and occupy it within 60 days of closing
• You are a legal resident of the United States

OHFA’s website has an eligibility tool to help you see if you qualify for one of its loans. Just answer a very few simple questions for an instant preliminary decision.

Although the OHFA doesn’t appear to require its borrowers to undergo home buyer education courses, those are always a good idea for newbies. The Oklahoma Association of Community Action Agencies runs workshops that provide the information you need.

The OHFA also offers mortgage credit certificates (MCCs), which can reduce your federal tax burden by up to $2,000 a year. And these can be valuable even if you take the standard deduction rather than itemize.

Oklahoma first-time home buyer grants

The OHFA offers Oklahoma first-time home buyers up to 3.5% of the total loan amount in down payment assistance. You must use one of OHFA’s mortgage programs (listed above) to qualify for this assistance. You can call (405) 419-8207 or email ownahome@ohfa.org for more details.

It’s worth noting that teachers, first responders, law enforcement, and state employees are typically eligible for a discounted interest rate when they use one of OHFA’s home buyer assistance programs.

• OHFA 4Teachers program: First-time buyers who are educators and teachers can receive a reduced mortgage interest rate, along with down payment assistance that’s equal to 3.5% of the total loan amount
• OHFA Shield program: If you’re a first-time homeowner who is currently employed as a firefighter, law enforcement officer, or emergency medical service provider, then you may be eligible for a mortgage rate reduction and down payment assistance
• Oklahoma State Employee program: Eligible state employees may qualify for a low-interest mortgage loan through OHFA

Meanwhile, REI Oklahoma says it offers a “gift of 3.5%, 4%, or 5% of the total loan amount” on FHA, VA, and USDA loans. Or a “gift of 3.5% or 4% of the total loan amount” on Freddie Mac HFA Advantage loans. Those are both grants that do not have to be repaid.

In addition, REI offers assistance of 3.5%, 4%, or 5% on Fannie Mae HFA Preferred mortgages. But that takes the form of a seven-year, forgivable, fixed-rate second mortgage.

Again, you need to confirm the details of this by talking to one of REI’s approved lenders. But, typically, these second mortgages are “silent,” meaning you pay no interest and make no monthly payments. And, after seven years, the loan is forgiven in full.

REI is different from the OHFA and you’ll need to use its lenders, meet its eligibility criteria, and follow its rules to qualify. But it does sound attractive.

Buying a home in Oklahoma’s major cities

First-time home buyers in Oklahoma’s most populated cities face home prices that outpace the rest of the Sooner State.

However, prices across the state are much more affordable than the national averages.

Oklahoma City first-time home buyers

The median list price of homes in Oklahoma City was $299,900 in February 2024. That fell 4% year-over-year, according to Realtor.com.

If you want to buy a home at that median price, your down payment options might fall between:

• $8,997 for 3% down payment
• $59,980 for 20% down payment

The city government of Oklahoma City does not appear to offer down payment assistance to its residents. But the Community Action Partnership in the city does have a program.

It says its Oklahoma City HOME program covers up to $14,999 in down payment and closing cost assistance. This takes the form of a forgivable, fixed-rate second mortgage. So you make no monthly payments and pay no interest. After seven years, the loan is forgiven, provided you continue to meet the rules.

If the property is sold, sub-leased, refinanced or transferred to another person before the seven year period is up, a full or pro-rated refund of the assistance funding is required.

Tulsa first-time home buyers

The median list price of homes in Tulsa was $270,000 in February 2024. That held flat year-over-year, according to Realtor.com.

If you want to buy a home at that median price, your down payment options might fall between:

• $8,100 for 3% down payment
• $54,000 for 20% down payment

The Housing Authority of the City of Tulsa says that, after you’ve completed an eight-hour home buyer education course, it can provide “a portion of the purchase price up to $5,000 toward your down payment and/or closing costs” through Housing Partners of Tulsa, Inc. There are, as usual, income limits and home price caps. You can find the details by clicking that link.

Norman first-time home buyers

The median list price of homes in Norman was $340,000 in February 2024. That increased 3% year-over-year, according to Realtor.com.

If you want to buy a home at that median price, your down payment options might fall between:

• $10,200 for 3% down payment
• $68,000 for 20% down payment

We could find no trace of a down payment assistance program on the City of Norman’s website. But, of course, you can apply for help from OHFA or REI, as can all eligible Oklahomans.

Where to find home buying help in Oklahoma

In addition to our selection, the U.S. Department of Housing and Urban Development (HUD) provides lists of statewide, regional, and local resources:

Statewide and regional Oklahoma first-time home buyer programs

• Oklahoma Housing Finance Agency: Home buyer assistance programs, including down payment and closing cost assistance
• Habitat for Humanity: Through volunteer labor, builds and rehabilitates houses for families in need
• U.S. Department of Agriculture Rural Housing: Homeowner assistance programs in rural communities
• Community Action agencies: Homeownership and homebuyer education programs
• The Oklahoma Homebuyer Education Association: What you should know before buying a home

Oklahoma first-time home buyer programs by city/town

• Lawton
• Midwest City
• Oklahoma City
• Tulsa

What are today’s mortgage rates in Oklahoma?

You can see today’s live mortgage rates in Oklahoma here. Or, experiment with a mortgage calculator to see how down payment, interest rates, homeowners insurance, and property taxes will affect your monthly mortgage payment.

When you’re ready to start the home-buying process, get personalized rate quotes from at least three mortgage lenders. Don’t just look at advertised rates online. Apply for preapproval and compare the interest rates and fees you’re offered. That’s the only way to know you’re getting the best deal possible on your new home loan.

¹Source: Redfin Oklahoma Housing Market report

²Source: Experian.com study of 2021 and 2020 data

³Based on a review of the state's available DPA grants at the time this was written

⁴Oklahoma Housing Finance Agency (OHFA)

⁵OHFA Approved Lender List