How much of a down payment do I need to buy a house in Oklahoma?

Oklahoma offers down payment assistance of up to 3.5% of a home's loan price as a silent second mortgage, allowing many Oklahomans to get into a home with little to nothing down. The qualifications are pretty liberal, meaning that many home buyers in Oklahoma will qualify for this assistance. Even if you don't, you can also get a zero down payment mortgage through VA or the USDA. In addition, conventional mortgages typically only require 3% down, and FHA mortgages just 3.5%.

How much are closing costs in Oklahoma?

Oklahoma closing costs are very reasonable, with the average home buyer paying just $2,893 to close on their purchase loan, which is about 1.5% of the average home's price. These can also be paid using down payment assistance through the Oklahoma Housing Finance Agency.

What does homeowners insurance cost in Oklahoma?

Not surprisingly, homeowners insurance on a $300,000 home in Oklahoma is the highest in the nation at $5,858, due to the high incidence of hazards like tornadoes. This is $3,257, or 125% more, than the national average.

What is the property tax rate in Oklahoma?

Oklahoma is 32nd out of 50 when it comes to the cost of property taxes as a percentage of income. On average, Oklahoma counties only collect 0.74% of your property's assessed value in the form of tax revenue.

Oklahoma Mortgage Calculator

Have you been thinking about staking your claim in the Sooner State? If so, it's important to understand all the costs that will be associated with your new home so you can figure those into your budget. We've designed an Oklahoma mortgage calculator to do just that. Simply plug in some numbers, and presto, you'll be able to build a budget to buy this real estate season.

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Have you been thinking about staking your claim in the Sooner State? If so, it's important to understand all the costs that will be associated with your new home so you can figure those into your budget. We've designed an Oklahoma mortgage calculator to do just that. Simply plug in some numbers, and presto, you'll be able to build a budget to buy this real estate season.

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Oklahoma housing market

Oklahoma home prices reached a sort of plateau in June 2022 and have been pretty much stable ever since, but still well below the national median home sales price. This is good for Oklahomans, since they can still get a great deal on housing, regardless of wider trends.

Like so many other places, Oklahoma is still suffering from low housing supply, but it is well above its lowest point. From June 2020 to July 2022, the state never had more than one month of housing inventory. Since then, it's approached four months a couple of times, which, while still low, is significantly better than that very thin period in the not-too-distant past.

It's unlikely that you'll find yourself in a super hot bidding war for a home in Oklahoma, but it's still a good idea to go ahead and shop for the best mortgage lenders and rates out there before you start to house hunt. That way, you're going to be ready with your pre-approval in hand when you do find the house of your dreams.

Here's a quick snapshot of some of the most important Oklahoma markets and how things are doing there.

Metropolitan Area	Median Home Value	1-Year Change
Broken Arrow	$299,000	0.9%
Edmond	$360,000	(6.5%)
Norman	$270,500	10.9%
Oklahoma City	$259,000	(4.1%)
Tulsa	$228,950	3.5%

Data source: Redfin. Figures accurate as of April 24, 2024.

How do I calculate my mortgage payment?

Tabulating your mortgage payment by hand can be gruesome, which is why most people opt to use a mortgage calculator like this one. But, if you're financially curious, this is the basic formula to start with:

This formula is just a starting point, as it only gives you the principal and interest payment portion of your mortgage. For a few lucky people, that's all there is, but most mortgages also include expenses like mortgage insurance and the components of your escrow account.

An escrow account is a special holding account for partial payments toward big expenses related to your home that are often paid once yearly. Rather than risk you forgetting to pay it, or being unable to pay these fees, your bank just collects 1/12 of your payment every month and holds on to it for you.

Here are a few common items that are escrowed:

To calculate your new mortgage with these additional expenses included, just click "show additional inputs" on the mortgage calculator above and add your estimated figures. It will get you a very close estimate of what to expect.

Things to know before buying a house in Oklahoma

Housing in Oklahoma is very well priced, compared to national averages, and the state has fairly low property taxes, too. It ranks 32nd out of the states for tax as a percentage of property value, at just 0.74% on average. This means that if your home's assessed fair market value is $107,700, you'll only pay $796 yearly in taxes.

Eastern Oklahoma, where most of the real estate for sale is located, has not seen as much warming as many other areas of the country due to climate change, but it is still experiencing a change in how precipitation works. Like in many areas, the wettest days are much wetter, which can result in flooding, and, at the same time, fewer days of rain can also encourage drought -- it's a vicious cycle. Tornadoes have long been an issue in Oklahoma, as have wildfires in some parts of the state.

Depending on where you live in Oklahoma, it's probably going to be smart to get more than just basic homeowners insurance coverage. If you're in an area prone to drought and wildfire, wildfire insurance will be important to keep; most of the state should consider wind insurance due to the estimated 60 tornadoes on average per year. Once you have the cost of these coverages in hand, you can plug that number into the Oklahoma mortgage calculator to help give you a better estimate of your overall payment.

Tips for first-time home buyers in Oklahoma

The Oklahoma Housing Finance Agency offers one program to help first-time home buyers with their down payment and closing costs, to the tune of 3.5% of their total loan amount. Buyers must purchase a home in the state of Oklahoma that will be their primary residence and must income-qualify based on their location and family size, not to exceed $150,000 per year.

If they do qualify, the 3.5% will appear as a silent second mortgage on their property, with a 0% interest rate. This loan must be repaid either when their home is sold, the loan is refinanced, or their first mortgage is paid off, so recipients should have a repayment plan in place before applying.

Advice for all first-time borrowers

Whether you qualify for down payment assistance in Oklahoma to buy your home or not, you can still apply for national mortgages with great terms, like FHA loans or conventional loans. Both have low down payment requirements, making them easier to secure for first-time buyers, and can be used on a vast array of homes.

Many homes in Oklahoma will also qualify for USDA financing, which can provide special terms, based on where the home is located, and veterans have the option of a VA loan to finance their home purchase.

However, before you apply for your mortgage loan, you want to become the best version of yourself possible in terms of your finances. That means that you must maintain steady employment for at least two consecutive years, you must pay creditors on time to help boost your credit score, and you absolutely must put your down payment and closing costs in a dedicated bank account to allow it to season, showing that it will be there when you're ready for it.

Other things that will help improve your odds of approval include paying off anything you can to lower your debt-to-income ratio, and not opening new credit lines between your pre-approval and closing day.

FAQs

Oklahoma offers down payment assistance of up to 3.5% of a home's loan price as a silent second mortgage, allowing many Oklahomans to get into a home with little to nothing down. The qualifications are pretty liberal, meaning that many home buyers in Oklahoma will qualify for this assistance. Even if you don't, you can also get a zero down payment mortgage through VA or the USDA. In addition, conventional mortgages typically only require 3% down, and FHA mortgages just 3.5%.
Oklahoma closing costs are very reasonable, with the average home buyer paying just $2,893 to close on their purchase loan, which is about 1.5% of the average home's price. These can also be paid using down payment assistance through the Oklahoma Housing Finance Agency.
Not surprisingly, homeowners insurance on a $300,000 home in Oklahoma is the highest in the nation at $5,858, due to the high incidence of hazards like tornadoes. This is $3,257, or 125% more, than the national average.
Oklahoma is 32nd out of 50 when it comes to the cost of property taxes as a percentage of income. On average, Oklahoma counties only collect 0.74% of your property's assessed value in the form of tax revenue.

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