Oklahoma First-Time Home Buyer Programs and Assistance

Buying in southwest Oklahoma? Talk to Herring Bank’s Oklahoma mortgage team at our Altus branch. 721 N Main, Altus · 1-580-482-6100 · NMLS #415783 · Equal Housing Lender

Who Counts as a First-Time Buyer in Oklahoma

For bond-financed programs like OHFA GOLD, a first-time homebuyer is generally someone who hasn’t owned and lived in a principal residence during the past three years. That’s the federal mortgage revenue bond rule. If you sold a home in 2022 and have rented since, you may qualify again.

Not every program cares:

• OHFA GOLD: first-time buyers only, unless the home is in a targeted census tract
• OHFA DREAM: no first-time requirement. You may even own other property, as long as the new home is your primary residence.
• Tulsa County First Home: first-time buyers
• FHA, VA, USDA and conventional loans: open to anyone. A conventional loan with only 3% down requires at least one first-time buyer.

OHFA Homebuyer Program and Down Payment Assistance

OHFA doesn’t lend directly. You apply through an OHFA-approved lender, and OHFA lists about 110 of them on its approved lender page. Its products are 30-year fixed loans in two families (OHFA DPA products, OHFA rates):

How OHFA assistance works

• The assistance is 3.5% of the total loan amount, applied to your down payment and closing costs.
• OHFA calls the lien a “silent second” because it carries no interest or fees, but its FAQ states that all OHFA down payment assistance “must be repaid.”
• General guidelines from OHFA’s FAQ: minimum credit score 640, total DTI no higher than 45%, income no more than $150,000, and the home must be your primary residence.
• Buyers using OHFA DPA must watch OHFA’s DPA video. OHFA offers homebuyer education through CreditSmart Homebuyer U.

Local Programs: Oklahoma City, Tulsa County and Lawton

Tulsa County: First Home program

The Tulsa County Home Finance Authority launched its First Home program in December 2025, funded with $25 million in revenue bonds. As reported at launch, it offered first-time buyers in Tulsa County a 30-year fixed first mortgage plus 3.5% of the mortgage amount for down payment and closing costs, fully forgiven if you stay in the home five years. Funds were first-come, first-served. Check eligibility and approved lenders at myfirsttulsacountyhome.com.

Oklahoma City: HOME homebuyer assistance

The City of Oklahoma City uses HUD HOME funds to help income-eligible households with down payment and closing costs: up to $18,000 based on need, plus up to $5,000 set aside to buy down the interest rate. The home must be inside the program boundaries, and homebuyer education (free) is required (City of OKC). The assistance has been described as a forgivable second mortgage with no monthly payment.

Lawton and southwest Oklahoma

Lawton, Altus and the surrounding counties have no large county-run DPA fund like Tulsa County’s, so most buyers there use OHFA, a VA loan, or a USDA loan in eligible rural areas. Ask your city’s community development office whether HOME-funded assistance is open when you apply. Herring’s Lawton mortgage team and Altus home loan team can run your numbers with each option.

Buying in Oklahoma City or Tulsa? Start with Herring’s Oklahoma City mortgage team or Tulsa mortgage team. Both have local underwriting and offer FHA, VA, USDA and conventional loans. NMLS #415783 · Equal Housing Lender

Income and Purchase-Price Limits

Worked example: a $200,000 home in Lawton

Illustrative only. FHA-based OHFA DREAM Government loan with 3.5% DPA.

• FHA minimum down payment (3.5%): $7,000
• Base loan $193,000. With the 1.75% upfront MIP financed, the total loan is about $196,378.
• OHFA assistance at 3.5% of the total loan: about $6,873, which covers nearly all of the down payment
• Principal and interest at an illustrative 6.75%: about $1,274 a month, plus about $90 a month of annual MIP (0.55%)
• Property tax around 1% of value in many Comanche County areas, roughly $167 a month before the homestead exemption, plus homeowner’s insurance

Without assistance, you’d need the $7,000 down payment from savings or a gift, but you’d usually get a lower rate. Ask for both quotes. Use Herring’s affordability calculator to test your budget.

Loan Types: FHA, VA, USDA and Conventional

Herring offers FHA home loans with 3.5% down. Our FHA page notes that some down payment assistance programs can be combined with FHA. If your credit needs work first, read FHA loans for borrowers with bad credit and how to buy a house with bad credit.

Military Buyers Near Altus AFB, Fort Sill and Tinker AFB

Southwest and central Oklahoma are home to Altus Air Force Base, Fort Sill in Lawton and Tinker Air Force Base near Midwest City. For eligible service members and veterans, the VA loan usually beats assistance programs:

• No down payment and no monthly mortgage insurance
• Funding fee of 2.15% on first use with less than 5% down, 1.5% with 5% down, and 1.25% with 10% down (VA.gov). Veterans receiving VA disability compensation are generally exempt.
• Sellers can cover closing costs. VA caps seller concessions at 4% of the home’s reasonable value, but standard closing-cost credits don’t count toward that cap.
• Short tour? Run the numbers on renting the home out after PCS. You can keep it as a rental, and your entitlement may support another VA loan at your next base.

Veterans rated 100% permanently and totally disabled may qualify for a full property tax exemption on their Oklahoma homestead. See our guide to the Oklahoma veteran property tax exemption.

Oklahoma Closing Costs, Property Taxes and Homestead Exemption

Closing costs

Budget roughly 2% to 5% of the loan amount for lender fees, appraisal, title insurance, recording, prepaid interest and an escrow cushion for taxes and insurance. OHFA’s 3.5% assistance and seller credits can cover much of this. Ask for a Loan Estimate early so you can compare lenders line by line.

Property taxes

Oklahoma property taxes are low by national standards. Counties assess homes at 11% to 13.5% of fair cash value, then apply local millage. For a homestead, the taxable value can rise by no more than 3% a year unless the property changes hands or is improved.

Homestead exemption

• Basic homestead exemption: reduces assessed value by $1,000 on your primary residence.
• Additional homestead exemption: another $1,000 if your gross household income from all sources didn’t exceed $30,000 in the prior year (68 O.S. §2890, as amended by HB 1008X).
• How to apply: file with your county assessor. Applications received by March 15 count for that year, and later filings roll to the next year. See the Oklahoma Tax Commission for forms.