Oklahoma City FHA Loan
Scissortail Financial offers FHA mortgage loans in Norman and beyond. With benefits like low down payments and flexible credit requirements, we’ll guide you through the process, ensuring a smooth and informed experience.
What is an FHA Loan?
An FHA loan is a government-backed mortgage designed to make homeownership more accessible. These loans are insured by the Federal Housing Administration (FHA), which allows lenders to offer more flexible credit and down payment requirements. FHA loans are especially popular with first-time homebuyers and those with limited financial resources.
Key benefits of FHA loans include:
Lower credit score requirements: Borrowers with scores as low as 580 may qualify for a 3.5% down payment, while those with scores between 500 and 579 may still qualify with a 10% down payment.
Low down payment options: FHA loans require a minimum down payment of 3.5%, making it easier for buyers to purchase a home.
Flexible debt-to-income ratios: Borrowers with higher debt levels may still qualify, provided they meet other criteria.
For residents of Norman, FHA loans provide an excellent opportunity to achieve homeownership, even if traditional financing options are out of reach. With Scissortail Financial, you’ll get expert guidance to navigate the FHA loan process and secure the financing that fits your needs.
FHA loans are designed to be more accessible than conventional loans, but there are still important qualifications to meet. Here are the key requirements for FHA loans:
Credit Score
Borrowers need a minimum credit score of 580 to qualify for a 3.5% down payment. Those with scores between 500 and 579 may still qualify, but a 10% down payment will be required.
Down Payment
FHA loans require a minimum down payment of 3.5% of the home’s purchase price. This payment can come from personal savings, gifted funds, or approved down payment assistance programs.
Employment History
Lenders typically require at least two years of steady employment or consistent income. Self-employed borrowers will need to provide tax returns or other proof of income.
Debt-to-Income Ratio
Your debt-to-income ratio (DTI) should generally not exceed 43%, though some exceptions may apply if you have other strong financial factors.
Property Requirements
The home being purchased must meet FHA safety, security, and livability standards. An FHA-approved appraiser will inspect the property to ensure compliance.
Mortgage Insurance
FHA loans require an upfront mortgage insurance premium (UFMIP) and annual mortgage insurance premiums (MIP). These costs are added to your monthly payment to protect the lender.
With Scissortail Financial, you’ll have expert guidance to help ensure you meet these requirements and take full advantage of the FHA loan program.
Scissortail Financial offers a variety of mortgage options to suit the unique needs of buyers in Norman. Here are some of the key programs available:
FHA Loans
A great choice for buyers needing flexible credit and down payment requirements. FHA loans are perfect for first-time buyers and those with less-than-perfect credit.
Conventional Loans
These loans often have competitive rates and require a minimum down payment of 3%, making them ideal for borrowers with good credit and steady income. No private mortgage insurance (PMI) is required if you put down at least 20%.
VA Loans
Eligible veterans, active-duty service members, and their families can take advantage of zero-down payment options and no PMI with VA loans, backed by the Department of Veterans Affairs.
USDA Loans
Buyers looking to purchase a home in rural areas around Norman can benefit from 100% financing and low-interest rates with USDA loans, provided they meet income and location requirements.
Refinance Loans
Whether you want to lower your rate, shorten your term, or tap into home equity, refinancing can be a smart move. Scissortail Financial offers tailored refinancing options to suit your financial goals.
First-Time Home Buyer Programs
Special programs designed to make homeownership easier, including lower down payments, reduced mortgage insurance costs, and access to down payment assistance.
Investment Property Loans
For those interested in purchasing rental properties or other investment opportunities, these loans are structured to meet your needs.
Second Home Loans
If you’re considering a vacation home or secondary property, Scissortail Financial offers flexible options to help make it happen.
Contact Scissortail Financial to learn more about these programs and find the best fit for your goals in Norman.
FAQ's
Norman,OK
Typically, you will need a minimum credit score of 580 to qualify for an FHA loan with a 3.5% down payment. For a credit score between 500 and 579, a 10% down payment is required.
For 2025, the FHA loan limit for a single-family home is $524,225. Limits increase for multi-family properties, going up to $1,007,750 for a fourplex.
Yes, FHA loans can be used to buy fixer-uppers through the FHA 203(k) program. This allows you to finance both the purchase price and the cost of renovations.
Yes, FHA loans require both an upfront mortgage insurance premium (UFMIP) and annual mortgage insurance premiums (MIP). These costs are included in your monthly mortgage payment.
No, FHA loans are available to all eligible buyers, not just first-time homebuyers. They’re a great option for anyone who meets the requirements and wants a more flexible loan.
Yes, FHA loans can be refinanced through the FHA Streamline Refinance program, which offers a simplified process with reduced documentation and potentially lower costs.
You will need to provide proof of income (pay stubs, tax returns), employment history, credit report, and other documents such as bank statements and identification. Additional documents may be required by your lender.
The approval process for an FHA loan typically takes about 30 to 45 days. This timeline can vary depending on the lender, your financial situation, and how quickly you can provide the required documentation.
No, FHA loans are intended for primary residences only. They cannot be used to purchase a second home or investment property.