The Federal Housing Administration (FHA) was established as part of the National Housing Act of 1934 which was created in response to the banking crisis of the 1930s. The FHA was tasked with improving and stimulating the housing market while protecting FHA-approved lenders from losses arising from borrower default. As of today, the FHA has insured over 34 million mortgages across the United States and is currently insuring 4.8 million single family mortgages. At 1st Capital Mortgage, LLC, we offer excellent rates and financing options on Tulsa FHA loans.
FHA loans are available for a variety of borrow needs including purchases, refinances, reverse mortgages, and even special renovation projects. FHA loans are quite popular amongst first time homebuyers in Tulsa due to the fact that they are one of the easiest mortgages to qualify for. Tulsa homeowners who currently have an FHA loan can take advantage of cash out refinance and streamline refinance options that are available to reduce interest rates or to obtain extra cash for various needs.
The popularity of FHA loans is often attributed to relaxed credit and low down payment requirements relative to many other loan programs. Borrowers could potentially qualify for an FHA loan with a credit score of 580 and a down payment as low as 3.5 percent. Family members are even able to gift money for the down payment if the borrower does not have the cash on hand.
Tulsa FHA Loan Requirements
- Credit Score – 580 is generally the minimum credit score required for an FHA loan. Borrowers with a credit score between 500 – 579 may be able to qualify with a 10 percent down payment.
- Income Requirements – A debt-to-income ratio of 43 percent or less is required. In special circumstances a debt-to-income ratio as high as 50 percent could be approved.
- Down Payment – 3.5 percent of the purchase price is the minimum down payment if the buyer’s credit score supports this. Higher down payments may be required in certain circumstances.
- Property Requirements – The property being purchased must meet certain safety, security, and soundness (structural integrity) requirements set forth by the FHA.
Two mortgage insurance premiums (MIP) are required with Tulsa FHA loans. One premium is paid up front and the other is a premium due each month.
- Up-front Premium Requirement – 1.75 percent of the purchase price. Buyers can pay this at closing or roll the premium into their mortgage.
- Monthly Insurance Premium – Premium will be based on a combination of factors including loan-to-value (LTV) ratio, loan amount, and length of the loan. The premium will be between .80 percent and 1.05 percent.
Tulsa FHA Loan Limits
Maximum FHA loan amounts are limited by county.
Whether you are looking to purchase your very first home in Tulsa, or are interested in refinancing an existing FHA loan at a better rate, 1st Capital Mortgage, LLC can assist you with all of your FHA loan needs. If there are any questions we can answer for you regarding Tulsa FHA loans, or if you are ready to begin the pre-qualification process, contact us today!