Enid FHA Loan
Scissortail Financial offers FHA mortgage loans in Enid, OK 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.
Table of Contents
What is an FHA Loan?
An FHA loan is a type of home financing insured by the Federal Housing Administration, designed to make buying a home more achievable for a wide range of borrowers. This government-backed loan program allows lenders to provide flexible terms, including lower credit and down payment requirements.
Why choose an FHA loan?
- Relaxed credit score standards: Buyers with a 580 credit score can qualify with as little as 3.5% down, while those with scores between 500 and 579 need a 10% down payment.
- Minimal upfront costs: The 3.5% down payment makes FHA loans accessible to those with smaller savings.
- Higher debt-to-income (DTI) allowances: FHA loans accommodate borrowers managing higher debt levels.
For families and individuals in Enid, FHA loans provide a practical path to homeownership. With Scissortail Financial’s expertise, navigating the application process is straightforward and stress-free.
Enid FHA Loan Requirements
The FHA loan program is known for its flexibility, but borrowers still need to meet certain qualifications to ensure successful approval. Here’s what you need to know about eligibility:
Credit Score Standards
- 580 and above: Eligible for the 3.5% minimum down payment.
- 500–579: Requires a 10% down payment.
- Scores below 500 typically do not meet FHA guidelines. However, a strong payment history on other accounts may improve your chances with some lenders.
Down Payment Sources
Your down payment can come from personal savings, gifted funds, or assistance programs. FHA loans allow more flexibility in sourcing these funds compared to conventional loans.
Proof of Income
Borrowers must demonstrate steady income or employment over the past two years. Documents such as W-2s, tax returns, or pay stubs are commonly required. Self-employed buyers need to provide profit-and-loss statements alongside tax documentation.
Debt-to-Income Ratio Limits
The FHA generally allows a maximum DTI ratio of 43%. Borrowers with higher DTI ratios may still qualify if they have compensating factors like a strong credit history or a larger down payment.
Property Standards
Homes financed through an FHA loan must meet strict safety and livability requirements. This includes a functioning heating system, secure roofing, and proper electrical wiring. An FHA-approved appraiser will confirm the property’s compliance before closing.
Mandatory Mortgage Insurance
FHA loans include two types of mortgage insurance:
- Upfront Mortgage Insurance Premium (UFMIP): Charged as a one-time fee equal to 1.75% of the loan amount.
- Annual Mortgage Insurance Premium (MIP): Paid in monthly installments and calculated based on the loan’s size and term.
Enid FHA Loan Limits
Enid Mortgage Programs
Scissortail Financial offers diverse home loan options, each tailored to the unique needs of buyers in Enid. Whether you’re investing, upgrading, or buying for the first time, we have solutions that fit your goals.
FHA Loans
FHA loans offer low down payment options and flexible requirements, making them a popular choice for first-time homebuyers or those with lower credit.
Conventional Loans
For borrowers with solid credit and savings, conventional loans provide competitive interest rates and flexible terms. A down payment as low as 3% is available, and private mortgage insurance can be waived with a 20% down payment.
VA Loans
If you’re a veteran or active-duty military member, VA loans offer zero-down payment options, no PMI, and some of the most favorable loan terms on the market.
USDA Loans
Perfect for rural homebuyers, USDA loans provide 100% financing and affordable interest rates. Eligibility is based on income and the property’s location.
Refinance Loans
Looking to lower your monthly payments or access home equity? Refinancing can help you achieve these goals. Scissortail Financial offers customized refinancing options to meet your needs.
First-Time Buyer Assistance
Programs designed for first-time buyers include reduced down payments, easier approval processes, and access to grants or assistance programs.
Investment Loans
Investors can benefit from flexible financing options for rental properties or income-generating real estate.
Second Home Loans
Dreaming of a vacation home or a secondary residence? Scissortail Financial provides competitive financing options to turn that dream into a reality.
FAQ's
Enid FHA Loan FAQ's
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.
