Who Is Considered a First-Time Homebuyer in Oklahoma?

A first-time homebuyer is, of course, anyone who has never owned a home, but it is also anyone who has not had an ownership interest in a primary residence during the last three years, the Oklahoma Housing Finance Agency (OHFA) says.

This is consistent with the definition of first-time homebuyer established by the U.S. Department of Housing and Urban Development (HUD).

To qualify for Oklahoma Housing’s homebuyer assistance plans and secure a home mortgage loan, either you or your spouse will have to qualify as a first-time homebuyer unless you intend to purchase a home in a targeted area.

Recommended: First-Time Homebuyer Guide

4 Oklahoma Programs for First-Time Homebuyers

Both OHFA and Rural Enterprises Inc. (REI) of Oklahoma offer homebuyer assistance to individuals with low to middle incomes, first-time buyers, and those employed in jobs that serve the community.

Here’s a rundown of the organizations’ programs for first-time homebuyers:

1. Down Payment Assistance Gold Loan

OHFA’s Gold Loan allows first-time homebuyers and people purchasing in targeted areas to obtain up to 3.5% of their first mortgage amount in the form of a grant when closing on an FHA, VA, USDA, or conventional mortgage loan.

To qualify, you’ll need to apply directly through an OHFA-approved mortgage lender and meet the income limits by area and loan type. Also:

Minimum FICO^® credit score: 640

Maximum debt-to-income (DTI) ratio: 45%

If you sell the home within the first nine years after purchasing it, the grant is subject to a recapture tax of up to 50% of the gain on the sale of the home, or 6.25% of the original mortgage, whichever is less.

2. Down Payment Assistance Dream Loan

OHFA’s Dream Loan allows both first-time and repeat homebuyers with higher incomes to obtain a grant of up to 3.5% of their total first mortgage amount.

For those taking out a government-backed mortgage, the maximum income statewide is $150,000, no matter the household size. For conventional loan borrowers, the income limit depends on the county.

Borrowers will be subject to a recapture tax if their home is sold within the first nine years of purchase.

Minimum credit score: 640

Maximum DTI: 45%

3. OHFA Special Interest Rates for Public Servants

OHFA grants people who serve the community and are applying for a Gold or Dream Loan an interest rate discount off their quoted mortgage rate.

To be eligible for an interest rate discount, you must fall under one of the following OHFA employment categories:

•   OHFA Shield: Eligible borrowers employed as firefighters, law enforcement officers, EMTs, and paramedics.

•   OHFA 4Teachers: Eligible borrowers who hold a current Oklahoma teaching certificate and have an active contract with an accredited Oklahoma public or private school.

•   State Employee: Eligible borrowers currently employed by an Oklahoma state agency.

Minimum credit score: 640

Maximum DTI: 45-50%

Utilizing OHFA’s low interest rate loans may subject you to a recapture tax.

4. REI Gift 100 Program

Rural Enterprises of Oklahoma offers a competitive fixed-rate, 30-year first mortgage (FHA, VA, USDA, Fannie Mae HFA Preferred, or Freddie Mac HFA Advantage) and down payment/closing cost assistance to low-income families and individuals in Oklahoma.

Depending on what type of mortgage loan you choose, the assistance can come in the form of a gift, a forgivable seven-year second mortgage, or an amortizing ten-year second mortgage. The amount of assistance offered is generally 5% of your total loan amount. Funds can be applied toward a borrower’s down payment, closing costs, or any other mortgage-related expenses.

Minimum credit score: 640

Maximum DTI: 45%

Other Oklahoma Homebuyer Programs by Location

If you’ve already chosen the part of Oklahoma you hope to make your home, you also may want to research local buyer assistance programs. (And if you aren’t sure where to put down roots, check out a guide to the best affordable places in Oklahoma to live.)

Stillwater Homebuyers Assistance Program

Low- and moderate-income first-time buyers looking to purchase homes in the city of Stillwater may receive up to $5,000 of down payment and closing cost assistance if they qualify. You must live in the home for seven years, after which the money is forgiven.

Requirements:

•   Low- and moderate-income buyers’ household incomes can’t exceed 80 percent of median income in the area.

•   First-time buyers have a maximum purchase price of $250,000.

•   Buyers must live in their home as a primary residence for seven years or more.

•   You must complete a homebuyer education class.

•   You must purchase within Stillwater city limits.

Oklahoma City Homebuyers Assistance Program

The HOME Investment Partnerships Program (HOME) is funded by the U.S. Department of Housing and Urban Development. It provides up to $18,000 in assistance for down payments and closing costs. You may also get an extra $5,000 to use to buy down your interest rate. The program is for first-time and repeat homebuyers who purchase in an approved area.

Requirements:

•   You must fall within income limits, which vary by household size.

•   Purchase price may not exceed 95 percent of Oklahoma City’s median home sale price.

•   You must have a maximum 43-percent debt-to-income ratio.

•   You must contribute at least 1 percent toward the purchase of the home’s sale price.

•   You must complete a homebuyer education class.

Midwest City Homebuyers Assistance Program

This program for first-time homebuyers in Midwest City offers eligible potential owners up to $7,500 to apply to a down payment and closing costs. The loan may be forgiven after five years if you use it as your primary residence during that time.

Requirements:

•   You must be a first-time homebuyer.

•   You’ll need to purchase a Midwest City property.

•   Household income can’t be more than 80 percent of the median family income in the area.

•   You will be required to complete a homebuyer education course.

•   A minimum of 1.5 percent of the sales price (at least $500), including down payment and closing costs, must be paid with your own funds.

Tulsa County First Home Program

Tulsa County’s First Home Program gives borrowers a 30-year fixed-rate mortgage along with a forgivable loan to help with their down payment and closing costs, for assistance equaling 3.5 percent of a home’s sale price (maximum $17,882). The program is for first-time buyers, but repeat buyers in target areas and veterans are eligible to apply. As of March 2025, non-target area funds had been utilized, but target area funds were available.

Requirements:

•   You must have a credit score of 620 or above.

•   Maximum purchase price for non-targeted areas is $510,939, and $624,481 for targeted areas.

•   Homebuyers must meet income limits, which vary by area and household size.

•   You will need to attend a homebuyer education class.

How to Apply to Oklahoma Programs for First-Time Homebuyers

To qualify for Oklahoma’s first-time homebuyer assistance, you’ll need to meet the prescribed income, credit, and DTI ratio requirements, which vary by program.

OHFA Gold and Dream Loans

If you think you qualify for an OHFA product, you can search for an approved lender near you and request an application for a Gold or Dream Loan.

The lender will determine whether you qualify, and also may request documentation to confirm eligibility for an interest rate discount through the OHFA Shield, OHFA 4Teachers, or State Employee programs.

REI Gift 100 Program

To apply for the REI Gift 100 Program, you’ll need to contact an approved lender to see whether you qualify for down payment assistance based on your financial profile.

When you’re ready to proceed with your mortgage application, you can get pre-approved by the lender for a mortgage and the down payment/closing cost assistance.

Recommended: How to Afford a Down Payment on Your First Home

Federal Programs for First-Time Homebuyers

Government-funded programs are available for potential buyers with low credit scores or limited down payment options. Some are designed for repeat homeowners, but these national programs are generally for people who are buying a home for the first time or who haven’t owned a home in several years.

These mortgage programs are generally accessible for those hoping to purchase single-family homes, two- to four-unit properties that will be owner occupied, approved condos, townhomes, planned unit developments, and some manufactured homes.

Federal Housing Administration (FHA) Loans

Homebuyers choose from a list of approved lenders participating in the FHA loan program.

Loans have competitive interest rates and require a down payment of 3.5% of the purchase price for borrowers, who typically need FICO® credit scores of 580 or higher. Those with scores as low as 500 must put at least 10% down.

In addition to examining your credit score, lenders will look at your debt-to-income ratio (DTI, your monthly debt payments compared with your monthly gross income). FHA allows a DTI of up to 57%, vs. a typical 45% maximum for a conventional loan.

Gift money for the down payment is allowed from certain donors and will be documented in a gift letter for the mortgage.

FHA loans always require mortgage insurance premiums (MIP): This includes a fee of 1.75% of the base loan amount, which can be rolled into the loan, upfront. Borrowers also carry annual premiums for the life of the loan. As of 2025, monthly MIP for new homebuyers is 0.15% to 0.75%. A down payment of at least 10% allows the removal of mortgage insurance after 11 years. For a $300,000 mortgage balance, upfront MIP would be around $5,250 and monthly MIP, at a rate of 0.55%, would be about $137.

To learn more about these loans, including FHA loans for refinancing and rehabbing properties, read up on FHA requirements, loan limits, and rates.

Freddie Mac Home Possible Mortgages

Low- and very low-income borrowers may make just a 3% down payment on a Home Possible® mortgage. These loans allow various sources for down payments, including co-borrowers, family gifts, employer assistance, secondary financing, and sweat equity.

The Home Possible mortgage is for buyers who have a credit score of at least 660. Once you’ve paid off 20% of your loan, the Home Possible mortgage insurance can be canceled, which will lower your mortgage payments.

Once you pay 20% of your loan, the Home Possible mortgage insurance will be canceled, which will lower your mortgage payments.

Fannie Mae HomeReady Mortgages

Fannie Mae HomeReady^® Mortgages allow down payments as low as 3% for low-income borrowers. Applicants generally need a credit score of at least 620; pricing may be better for credit scores of 680 and above. Like the Freddie Mac program, HomeReady loans allow flexibility for down payment financing, such as gifts and grants.

For income limits, a comparison to an FHA loan, and other information, go to this Fannie Mae site .

Fannie Mae Standard 97 LTV Loan

The conventional 97 LTV loan is for first-time homebuyers of any income level who have a credit score of at least 620 and meet debt-to-income criteria. The 97% loan-to-value mortgage requires 3% down. Borrowers can get down payment and closing cost assistance from third-party sources.

Department of Veterans Affairs (VA) Loans

Eligible active-duty members of the military, veterans, reservists, and surviving spouses may apply for loans backed by the Department of Veterans Affairs. These loans designed for those who serve our country can be used to buy, build, or improve homes, have lower interest rates than most other mortgages and don’t require a down payment. Most borrowers pay a one-time funding fee that can be rolled into the mortgage.

Another advantage of VA loans is that they do not require PMI for borrowers who make a down payment of less than 20%. And they have more flexible credit score requirements. In some cases, even those who have previously been in foreclosure or bankruptcy can qualify.

Borrowers applying for a VA loan will need a Certificate of Eligibility from the VA so make sure to review a guide to qualifying for a VA loan as a first step in the process.

Native American Veteran Direct Loans (NADLs)

Native American veterans and their spouses who are eligible may use these no-down-payment loans to buy, improve, or build a new home on federal trust land. Unlike VA loans listed above, the Department of Veterans Affairs is the mortgage lender on NADLs. The VA requires no mortgage insurance, but charges a funding fee.

US Department of Agriculture (USDA) Loans

No down payment is required on these loans for moderate-income borrowers that are guaranteed by the USDA in specified rural areas. Borrowers pay an upfront guarantee fee and an annual fee that serves as mortgage insurance.

The USDA also directly issues loans to low- and very low-income potential homeowners. For loan basics and income and property eligibility, head to this USDA website .

HUD Good Neighbor Next Door Program

This program helps police officers, firefighters, emergency medical technicians, and teachers qualify for mortgages in the areas they serve. Borrowers can receive 50% off a home in what HUD calls a “revitalization area.” They must live in the home for at least three years.

Visit the HUD program page for more information.

Oklahoma First-Time Homebuyer Stats for 2025

•   Percentage of buyers nationwide who are first-time buyers: 32%

•   Percentage of nationwide buyers who are first-time buyers: 24%

•   Median age for first-time homebuyers: 38

•   Median home price in Oklahoma: $259,700

•   Median down payment: $26,000

•   Average credit score in Oklahoma: 696

Not sure how much home you can afford? Use this home affordability calculator to find out.

Additional Financing Tips for First-Time Homebuyers

In addition to federal and state government-sponsored lending programs, while you’re crunching the numbers on projected mortgage payments, you might want to hone your knowledge about other financial strategies that may help you become a homeowner. Some examples:

•  Traditional IRA withdrawals. The IRS allows qualifying first-time homebuyers a one-time, penalty-free withdrawal of up to $10,000 from their IRA if the money is used to buy, build, or rebuild a home. For the purposes of IRA withdrawals, a first-time homebuyer is someone who has not owned a principal residence in the last two years. You will still owe income tax on the IRA withdrawal. If you’re married and your spouse has an IRA, they may also make a penalty-free withdrawal of $10,000 to purchase a home. The downside, of course, is that large withdrawals may jeopardize your retirement savings.

•  Roth IRA withdrawals. Because Roth IRA contributions are made with after-tax money, the IRS allows tax- and penalty-free withdrawals of contributions for any reason as long as you’ve held the account for five years. You may also withdraw up to $10,000 in earnings from your Roth IRA without paying taxes or penalties if you are a qualifying first-time homebuyer and you have had the account for five years. With accounts held for less than five years, homebuyers will pay income tax on earnings withdrawn.

•  401(k) loans. If your employer sponsors a 401(k) account and allows borrowing from the 401(k) plan, you may consider taking a loan against the 401(k) account to help finance your home purchase. With most plans, you may be able to borrow as much as 50% of your 401(k) balance, up to $50,000, within a 12-month period and incur no taxes or penalties. You pay interest on the loan, which is paid into your 401(k) account. You usually have to pay back the loan within five years, but if you’re using the money to buy a house, you may have up to 15 years to repay.

•  State and local down payment assistance programs. Usually offered at the regional or county level, these programs provide flexible second mortgages for first-time buyers looking into how to afford a down payment.

•  The mortgage credit certificate program. First-time homeowners and those who buy in targeted areas can claim a portion of their mortgage interest as a tax credit, up to $2,000. Any additional interest paid can still be used as an itemized deduction. To qualify for the credit, you must be a first-time homebuyer, live in the home, and meet income and purchase price requirements, which vary by state. If you refinance, the credit disappears, and if you sell the house before nine years, you may have to pay some of the tax credit back. There are fees associated with applying for and receiving the mortgage credit certificate that vary by state. Often the savings from the lifetime of the credit can outweigh these fees.

•  Your employer. Your employer may offer access to lower-cost lenders and real estate agents in your area, as well as home buying education courses.

•  Your lender. Always ask your lender about any first-time homebuyer grant or down payment assistance programs available from government, nonprofit, and community organizations in your area.

The Takeaway

First-time homebuyers of low and moderate means in Oklahoma can try to lasso mortgage and down payment assistance programs that can make buying a home more affordable. Other first-time buyers can look for a good fit among mortgages on their own.