REI Oklahoma Down Payment Assistance (Gift Program)

REI Oklahoma Down Payment Assistance (Gift Program) is sponsored by REI Oklahoma. This program provides down payment assistance as a true gift for homebuyers statewide. There is no lien, no second mortgage, and no repayment required.

While this is for home down payments, the broader goal of financial independence aligns with the applicant's mission.

How it Works | REI Oklahoma How Down Payment Assistance Works REI Oklahoma’s down payment assistance is as simple as asking an approved lender. With more than 35 approved lenders experienced with our program, assistance is seamless to secure.

Depending on the type of first mortgage you secure, our assistance comes in one of four forms: Think of this like a gift from a family member that doesn’t have to be repaid – but in this case, the financial assistance comes from REI Oklahoma. No second mortgage on the property. You can get up to 5% of your loan amount in assistance.

May cover your entire cash requirement at closing. Available on FHA, USDA-RD, VA, HUD-184 and Freddie Mac HFA Advantage loan types. Forgivable Second Mortgage This is a second mortgage that reduces over time.

Each month, part of it is forgiven, and if you live in the home for 7 years, you never have to pay it back. Provides up to 5% of your total loan amount in assistance. May cover your entire cash requirement at closing.

No repayment if you live in the home for at least 7 years. Available for Fannie Mae HFA Preferred loan type. Amortizing Second Mortgage This option provides assistance that you’ll pay back over 10 years with a fixed 5% interest rate.

Provides 5% of your loan amount in assistance. Benefits include near market rate interest rates on the first mortgage and may include lower insurance premiums. May cover your entire cash requirement at closing.

Available for Fannie Mae HFA Preferred and Freddie Mac HFA Advantage loans. This combines our Gift Funds and our Amortizing Second Mortgage program. Half the assistance is a gift and the other half is a second mortgage that’s paid back monthly.

You get 5% of the total first mortgage loan amount in assistance: 2. 5% is a second mortgage (paid over 10 years at 5% interest). 2.

5% is a gift (no repayment). If using an FHA loan, you will need to contribute at least 1% of your own funds toward the minimum required down payment investment. Five Steps to Homeownership Talk with an Approved Lender When you speak with them, mention that you want to use the REI Home100 Program.

You can find a list of participating lenders here. Get Pre-Approved for a Loan Work with your lender to provide all necessary documents and information to get pre-approved for a loan you can afford. While your lender is processing your mortgage loan, they will simultaneously approve you for our program.

That means no additional paperwork or legwork for you. Find a Home You Want to Buy Search with your realtor to find a house you love that is within your pre-approved loan amount. Your realtor will help submit an offer and finalize a purchase contract with the seller.

Submit Paperwork to Begin Loan Process Once you have a contract on a home, you will provide documentation to your lender to support your loan application. These documents can include pay stubs, tax returns, bank statements and other items to verify not only your income and assets, but also your debt. Your lender will provide a list of everything they need.

Once your loan has been approved, your lender will schedule a closing day. Using our program does not delay your closing date or require any additional work or paperwork from you. When the lender is ready to close on your loan, so is REI Oklahoma.

Homebuyer Frequently Asked Questions How does Down Payment Assistance work? The assistance is provided in three forms: a gift that does not have to be repaid, a 2nd mortgage loan which will be paid back monthly over ten years, or a forgivable 2nd mortgage which does not have to be repaid if you live in the home for seven years.

The amount of down payment assistance received is based on a percentage of the total first mortgage loan amount. We can provide up to 5% assistance depending on the first mortgage loan product recommended by your lender. Your lender can help determine which option is best for you.

DPA Type is: Forgivable 2nd Mortgage DPA Type is: Amortizing 2nd Mortgage 5% Assistance: $5,000 Gift 5% Assistance: $5,000 Forgivable 2nd Mortgage 5% Assistance: $5,000 Amortizing 2nd Mortgage No repayment or liens for the $5,000 2nd mortgage forgiven 1/84th a month over 7 years – no payments unless you sell or refinance within the 7 years.

2nd mortgage paid back monthly over 10 years at an interest rate of 5% What type of loan programs are offered with the assistance? We can provide down payment and closing cost assistance on most first mortgage products offered by your lender, including government loans and conventional loans. Your lender will determine which one is best for you.

Freddie Mac HFA Advantage All loans are 30-year, fixed rate mortgages. Do I have to pay back any portion of the down payment assistance? REI Oklahoma has four different types of assistance.

See below for details regarding each type of assistance. Gift – the borrower receives a gift where no funds are required to be paid back and no liens are filed against the property, as it relates to the Gift funds. Forgivable 2nd Mortgage – borrower receives assistance from REI and a forgivable 2nd mortgage is filed as a lien against your property.

The 2nd mortgage is forgiven 1/84th a month and totally forgiven if the borrower lives in the home for seven years. This must be repaid upon the earliest of: selling or refinancing the property, full payment of the property, or ceasing to occupy it as a your primary residence for more than 60 days within the initial 7-year period.

Amortizing 2nd Mortgage – borrower receives assistance from REI and an amortizing 2nd mortgage is filed as a lien against your property. The 2nd Mortgage has an interest rate of 5% and will be paid back monthly over 10 years. Hybrid Program – this combines our Gift Funds and our Amortizing Second Mortgage program.

Half the assistance is a gift and the other half is a second mortgage that’s paid back monthly. Your lender will help you determine which first mortgage loan product is best for you. How do I apply for the assistance?

Review the 5 steps above and contact one of our approved Lenders Approved Lenders. Click here to access our lender list . You may use the REI Home100 approved lender of your choice.

If you are using a lender that is not familiar with the program or is not approved, please have them contact one of the members of our housing staff at (800) 658-2823 or reidpa@reiok. org . Am I required to stay in the home for any minimum number of years?

That depends on the first mortgage loan product your lender determines is in your best interest. Our gift funds are not tied to a minimum number of years. Our forgivable 2nd mortgage funds are forgiven 1/84th a month for a total of 7 years.

If you sell or refinance within 7 years, you will be required to pay back the pro-rata share based on how long you have lived in the home. Our amortizing second mortgage funds are paid back monthly over a period of 10 years. If you sell or refinance within that time, you will be required to pay in full the unpaid balance of the second mortgage.

Are there income restrictions? The income limits for the REI Down Payment Assistance (DPA) program depends on the DPA and loan type you are receiving. A lender can determine what loan and DPA type is best for you.

Click the links below to view the income limits for the different programs available. FHA & VA Qualifying Income Limits FHA Household Income Limits USDA Rural Development Income Limits Conventional Income Limits At or Below 80% Area Median Income Conventional Income Limits Above 80% Area Median Income What are the first mortgage interest rates? The interest rates for the REI Home100 Program are set daily.

For more information about interest rates on a specific day, please contact a participating mortgage lender by visiting our Approved Lender page. Please note that as a result of the assistance, the interest rate on the first mortgage loan could be slightly higher than a first mortgage loan that does not include the assistance. Do I have to be a first-time homebuyer?

No, there is no first-time homebuyer requirement. What is the minimum credit score? All borrowers MUST have a minimum credit score of 640.

How long does the process take? Lenders should be able to close a loan with the REI Home100 Program in the same amount of time it takes to close a traditional mortgage loan. Can the Seller help me pay closing costs?

Yes, the seller can contribute the maximum amount allowed by the first mortgage loan product utilized. DTI stands for debt-to-income ratio, also referred to as back-end ratio. It shows how much of your gross monthly income is needed to cover all your debt obligations.

Follow these steps to determine your approximate DTI: Add up all of your monthly debt payments (including your mortgage, car loans, child support and alimony, credit cards, student loans, etc.) Divide this amount by your gross monthly income. Then multiply this amount by 100. This percentage is your DTI.

Please keep in mind that you must meet specific underwriting standards. The participating mortgage lender can help you better understand FICO credit score and DTI. Does the borrower have to take a homebuyer education class?

Government Loan Products: Homebuyer education is recommended but not required. Conventional Loan Products: Required if all borrowers are first-time homebuyers, at least one borrower must complete pre-purchase homebuyer education and counseling. The following courses listed are acceptable: REI Homebuyer Education through EHome America, please click on the following link to take the online course.

The cost is $99. 00.

Fannie Mae’s HomeView Homeownership Course HomeView Homeownership Course Freddie Mac’s CreditSmart Homebuyer U HUD approved counseling agency Oklahoma HUD Approved Counseling Agencies Homeownership education programs developed by mortgage insurance companies or other providers’ programs that meet the standards for Homeownership Education and Counseling set by HUD or the National Industry Standards for Homeownership Education and Counseling Lender must retain a copy of the certificate of course or counseling completion in the loan file.

What is the difference between closing costs and required down payment? Closing costs are fees associated with the cost of obtaining a home loan. These fees include items such as the appraisal, lender origination fees, escrow charges, lender’s title insurance and prepaid taxes and insurance premiums.

The down payment for a home is applied directly toward lowering your total loan amount. Normally based on a percentage of the total sales price, the amount is established by the first mortgage loan product that the lender has chosen for your loan. Can I receive assistance for investment property or a second home?

No, the borrower must utilize the assistance on their primary residence.