Stillwater FHA Loan
Scissortail Financial offers FHA mortgage loans in Stillwater, OK. With benefits like low down payments and flexible credit requirements, we’ll guide you through the process, ensuring a smooth and informed experience.
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What is an FHA Loan?
An FHA loan is a government-backed mortgage insured by the Federal Housing Administration, designed to make homeownership more accessible. With flexible requirements, FHA loans cater to first-time buyers and individuals who may not qualify for conventional financing.
Why choose an FHA loan?
- Lower credit score requirements: A credit score of 580 allows for a 3.5% down payment, while scores between 500 and 579 require 10%.
- Affordable down payment: Only 3.5% of the purchase price is needed for qualified borrowers.
- Higher debt-to-income (DTI) ratios allowed: FHA loans are more forgiving when it comes to borrowers with existing debts.
For buyers in Stillwater, FHA loans are a practical and affordable way to secure a home. With Scissortail Financial, you’ll receive expert guidance to make the loan process seamless.
Stillwater FHA Loan Requirements
FHA loans are designed to make homeownership more accessible, but there are specific eligibility requirements that borrowers must meet. Below are the key criteria:
Credit Score
- 580 or higher: Qualifies for a 3.5% down payment.
- 500–579: Requires a 10% down payment.
- Scores below 500 generally do not qualify, but lenders may evaluate your payment history and financial stability.
Down Payment
Borrowers with a credit score of 580 or above need only 3.5% of the purchase price as a down payment. FHA loans allow these funds to come from savings, gifts, or approved assistance programs.
Employment and Income
Steady income over the past two years is essential. Borrowers must provide documents such as pay stubs, tax returns, or W-2s. Self-employed applicants will need additional documentation, including tax returns and profit-and-loss statements.
Debt-to-Income Ratio (DTI)
FHA loans typically allow a maximum DTI ratio of 43%, though borrowers with compensating factors, like significant savings or larger down payments, may qualify with higher ratios.
Property Standards
The property must meet FHA safety and livability standards, including working utilities, sound roofing, and proper drainage. An FHA-approved appraiser will inspect the home to ensure it meets these guidelines.
Mortgage Insurance
Two types of mortgage insurance are required for FHA loans:
- Upfront Mortgage Insurance Premium (UFMIP): A one-time fee equal to 1.75% of the loan amount.
- Annual Mortgage Insurance Premium (MIP): Paid monthly and calculated based on the loan size and term.
Stillwater FHA Loan Limits
Stillwater Mortgage Programs
Scissortail Financial offers a variety of loan programs tailored to the unique needs of buyers in Stillwater. Whether you’re a first-time buyer, upgrading, or investing, there’s a mortgage solution for you:
FHA Loans
Designed for borrowers who may have lower credit scores or limited savings, FHA loans offer accessible terms with down payments as low as 3.5%.
Conventional Loans
Conventional loans are ideal for borrowers with solid credit and a stable financial history. With down payments starting at 3%, these loans offer flexibility and competitive interest rates. Private mortgage insurance (PMI) can be waived with a 20% down payment.
VA Loans
For eligible veterans, active-duty service members, and their families, VA loans provide unmatched benefits, including no down payment, no PMI, and favorable interest rates.
USDA Loans
Buyers looking to purchase homes in rural or suburban areas near Stillwater can benefit from USDA loans, which offer 100% financing and low interest rates. Eligibility is based on income and location.
Refinance Loans
Refinancing can help you lower your monthly payments, secure a better interest rate, or tap into your home’s equity. Scissortail Financial offers customized refinancing options.
First-Time Buyer Programs
Special programs for first-time buyers include lower down payments, reduced mortgage insurance costs, and access to grants or down payment assistance.
Investment Property Loans
For buyers looking to invest in rental or other income-generating properties, these loans offer flexible terms to support your financial goals.
Second Home Loans
Whether you’re planning for a vacation home or secondary residence, Scissortail Financial provides competitive financing options to make it a reality.
FAQ's
Stillwater 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.
