Oklahoma City Municipal Down Payment Support Scheme
The City of Oklahoma City is committed to making homeownership more accessible to its residents by offering the City Down Payment Assistance program. This initiative is designed to alleviate some of the upfront costs associated with buying a home, making it easier for eligible applicants to achieve their homeownership dreams.
Available Assistance
The City Down Payment Assistance (DPA) program provides financial support to eligible homebuyers in the form of a forgivable loan. While the maximum loan amount per household is $14,999.00, the actual amount awarded is determined on a case-by-case basis. Factors taken into account include the financial need of the homebuyer and adherence to the City’s adopted underwriting standards. This flexible approach ensures that assistance is tailored to each applicant’s unique situation.
The DPA funds can be utilized to cover eligible closing costs and down payments. It’s important to note that the assistance provided is not required to be repaid by the homebuyer at closing or any other time, making it a valuable resource for those looking to purchase a home.
Eligibility Requirements
To be eligible for the City Down Payment Assistance program, applicants must meet specific criteria. The primary requirement is that households must have an income equal to or less than 80% of the Area Median Income (AMI) for the Oklahoma City Metropolitan Statistical Area (MSA). The AMI is determined annually by the Department of Housing and Urban Development (HUD) and varies based on household size. This income threshold ensures that the program targets those who genuinely need assistance to purchase a home.
Additionally, each assisted household is expected to financially participate in the home purchase. The minimum investment required from the DPA recipient is 1% of the home’s sales price. This contribution can take various forms, such as out-of-pocket expenses for earnest money, appraisal fees, or credit reports. For those utilizing an FHA loan, the financial participation amount increases to 1.75% of the sales price. This requirement encourages a shared commitment between the homebuyer and the program.
Moreover, applicants with liquid assets exceeding $15,000 are encouraged to allocate these funds toward the purchase of their home whenever possible. This approach ensures that individuals with significant savings contribute to the financing of their new home.
In summary, the City Down Payment Assistance program in Oklahoma City is a valuable resource for eligible homebuyers looking to overcome the financial barriers to homeownership. With forgivable loans of up to $14,999.00, customized assistance based on financial need, and income eligibility requirements, this program aims to make homeownership more attainable for a broader range of residents. By promoting financial participation from recipients and encouraging the use of liquid assets, the program fosters responsible homeownership while assisting individuals in achieving their goal of owning a home in Oklahoma City.
