Closing cost assistance from the Oklahoma Housing Finance Agency (OHFA) is a federal loan program available to all U.S. military service members, veterans and their spouses who are buying a home in Oklahoma. The interest rate for assistance is the same as other government-backed loans, including FHA loans and VA mortgages – only 0.50 percent above prime with no points or closing costs.
Closing Cost Assistance Oklahoma
What is the interest rate for assistance?
The interest rate is the percentage of money you pay to borrow money. It is the price of borrowing money, and it is determined by factors such as the creditworthiness of a borrower and the term length of their loan. The longer your loan period, the higher your interest rate will be because you’re taking more time to repay it — so if you need to borrow $10,000 for one year at 6%, then you would pay back $10,600 ($10K + $600 in interest).
The lower your interest rate is, the less you pay! Borrowers with higher credit scores generally have access to lower rates thanks to lower risk profiles. If they do not take out loans often and have little debt compared with their income levels or assets available for collateralization; this may also factor into whether or not a lender will approve them for certain types of mortgages (such as those backed by FHA). However: there are still many reasons why someone might choose not get financing through traditional means despite having solid credit scores—but these options exist even if yours don’t!
What does “interest rate” mean?
What does “interest rate” mean?
The interest rate is the percentage of the loan amount you must pay to borrow from a lender. The higher the interest rate, the more you will pay in interest over time and also for each dollar borrowed. Interest rates are also called annual percentage rates (APR).
How much can I borrow if I qualify for a down payment assistance loan from Oklahoma Housing Finance Agency (OHFA)?
If you qualify for a down payment assistance loan, the maximum amount is determined by the home price and your income. The loan amount is limited to the difference between your down payment and your home price. For example, if you want to buy a $150K house with no money down and have 1% of your income as available cash (money in the bank), then OHFA will only provide up to $1,500 in assistance because that’s all the difference between $1,000 (your capitalized cost) and $146,000 ($150K – $1K).
If you have 2% of your income as available cash (money in the bank), then OHFA would be able to provide up to $3,000 in assistance because there are two ways they can fill this gap: either by lending another 1% or by lending additional funds beyond what’s needed just so long as it doesn’t exceed 2%.
How do I qualify for down payment assistance from OHFA?
To qualify for down payment assistance from OHFA, you must:
- Be a first-time homebuyer
- Be a low-income household (what’s considered low income depends on where in the state you live)
- Be an Oklahoma resident (some exceptions apply)
- Have enough money to cover your monthly mortgage payment and expenses
How much will my monthly payment be if I take out a loan from OHFA?
The amount that you will pay each month is the sum of your loan payment and the interest rate. The monthly payment will vary depending on the amount you borrow, but it is a good idea to have a general idea of what your payments might be like.
In addition to paying interest on your loan balance (see below), you may also have other fees associated with getting a home loan such as application fees or closing costs paid by either yourself or the lender.
Can I use a VA or FHA mortgage to qualify for OHFA’s Down Payment Assistance Program?
Yes, you can use a VA or FHA mortgage to qualify for OHFA’s Down Payment Assistance Program.
To be eligible for OHFA’s Down Payment Assistance Program, you must:
- Have an income of less than 80% of the county median income; and
- Meet all other program criteria.
Where does the Interest Rate come from?
The interest rate for assistance granted by the Oklahoma Housing Finance Agency (OHFA) is determined by the U.S. Department of Agriculture (USDA), and is normally not less than 2%. The USDA’s loan limit is determined on a case-by-case basis, but it’s usually between $200 and $300 thousand dollars.
Closing Cost Assistance Oklahoma
What is Closing Cost Assistance Oklahoma?
Closing cost assistance is a benefit that may be available to some military members and their families who are buying or refinancing a home. It allows them to receive help with the fees associated with buying a house, such as appraisal costs, origination fees, appraisal fees and other loan processing charges. Closing cost assistance is not considered your down payment but rather funds that can be used to offset closing costs when you purchase a home.
How much can you borrow?
The maximum amount of closing cost assistance varies depending on which branch of service you serve in (Army/Air Force/Navy/Marine Corps) and whether it’s an active duty or veteran status purchaser. The chart below shows how much money might be available for each category:
Closing
Hopefully, we have answered all of your questions regarding the interest rate for assistance and how much you can borrow. If you’re still confused about anything or need more information about loan types and rates, please contact OHFA today!