Unlocking Homeownership: Oklahoma City’s Homebuyer Assistance Program

Unlocking Homeownership: Oklahoma City's Homebuyer Assistance Program

The Homebuyer Assistance programs are designed to provide crucial support for income-eligible individuals and families on their journey to homeownership. These programs offer down payment and closing cost assistance (DPA) to make housing more accessible.

Available Assistance There are two distinct programs, each catering to specific areas within Oklahoma:

  1. Oklahoma City HOME Program: This program offers a DPA of up to $14,999.
  2. Oklahoma/Canadian Counties HOME Program: Eligible individuals in this region can receive a DPA of up to $14,249.

The assistance is provided in the form of a forgivable second mortgage, and it comes with a unique feature – no monthly payments are required. The second mortgage becomes forgivable under certain conditions:

  • If the buyer occupies the home as their primary residence for a seven-year affordability period (for Oklahoma City).
  • If the buyer occupies the home as their primary residence for a five-year affordability period (for Oklahoma and Canadian Counties).

However, if the property undergoes certain changes before the affordability period is completed (such as being sold, sub-leased, refinanced, or transferred to another person), a full or prorated refund of the assistance may be required. If the home is sold or ceases to be the primary residence during this period, the buyer may need to repay the assistance partially or in full. But, if the buyer fulfills the primary residence requirement for the entire affordability period, the loan is entirely forgiven.

Eligibility Requirements To qualify for these valuable assistance programs, applicants must meet specific criteria:

  • They should be either U.S. citizens or have a Permanent Resident Card.
  • Their household income should align with the HUD Low/Moderate Household Income Guidelines (subject to change).
  • Completion of a HUD Certified Homebuyer Education Workshop is mandatory.
  • Applicants must demonstrate their ability to meet credit and loan requirements to secure a first mortgage.
  • A critical aspect of eligibility is the buyer’s willingness to invest between 1% and 1.75% of their own funds towards the home purchase.

Property Guidelines For the Homebuyer Assistance programs, there are particular property guidelines to be aware of:

  • The purchase price of the property must not exceed:
    • $147,000 for existing homes or $238,000 for new construction in Oklahoma City and County.
    • $157,000 for existing homes or $238,000 for new construction in Canadian County.
  • Properties must be situated within the designated funding areas.
  • Properties within FEMA-designated 100-Year Flood Zones and Floodways are not eligible for this program.
  • Additionally, specific environmental requirements may apply.
  • All properties must pass a Housing Quality Standard (HQS) Inspection before closing.

These programs open doors to homeownership for those who meet the eligibility criteria and serve as a valuable resource for individuals and families looking to secure affordable housing in Oklahoma City and the surrounding regions.

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