The Cleveland County Home Loan Authority’s First-Home Homebuyer Assistance Program
Launched in response to rising home prices and mortgage rates, aims to make homeownership more accessible for first-time buyers in Cleveland County, Oklahoma. The
program is backed by a $25 million commitment in mortgage revenue bonds, which supports below-market mortgage rates and down payment assistance to encourage first-time buyers to establish permanent residency in the county. $21.5 million has been loaned out to Cleveland County residents.
Key Features of the Program
- Below-Market Mortgage Rates:
– The program offers fixed mortgage rates that are approximately 75 basis points (0.75%) lower than the standard 30-year residential mortgage rate as of December 5, 2024. This reduction can significantly lower monthly payments, making homeownership more affordable for first-time buyers facing financial pressures from high home prices and interest rates.
- Down Payment Assistance:
– Eligible buyers receive a 3.5% loan to cover down payments and closing costs. This loan is fully forgivable after five years of residency in the home, provided the buyer does not sell, refinance, transfer, or pay down the mortgage during this period. This incentive encourages long-term commitment to Cleveland County.
- Funding Mechanism:
– The $25 million in mortgage revenue bonds is distributed through 12 participating lenders on a first-come, first-served basis. The exact duration of fund availability is uncertain, as it depends on the rate of loan applications and approvals.
- Eligibility:
– The program targets first-time homebuyers, defined as those who have not owned a home in the past three years, though it is also open to individuals moving to Cleveland County for the first time. Specific income limits, credit score requirements, or other eligibility criteria are not detailed in the provided sources, but such programs typically require applicants to meet income thresholds (e.g., low to moderate income) and credit standards.
- Program Goals:
– The initiative aims to alleviate financial barriers to homeownership, particularly in a market where median single-family home prices have become challenging for first-time buyers. By offering lower rates and forgivable loans, the program seeks to make Cleveland County an attractive, permanent home for new residents.