FHA LOANS The Federal Housing Administration makes loans available to conforming borrowers up to an amount of $144,336 in Tulsa County. FHA loans are designed in general for lower income borrowers who may have particular needs in the area of ready cash for down payment and closing. The FHA allows the borrower to add portions of the down payment and closing costs on top of the qualified loan amount, thus effectively financing that portion of the initial cost of the transaction into the long term loan. FHA also requires the seller to pay portions of the buyer's closing costs, including some additional inspection fees which are not normally required to close a loan. The net result is that a borrower can normally get into a home with approximately 2 to 5% of the purchase price out-of-pocket. FHA loan requirements are slightly less than those of a Conventional Loan, both in terms of credit history and debt to income ratios. For a discussion of this, see the "additional info" section related to Conventional Loans. FHA interest rates are normally very close to those of a Conventional Loan. It should be pointed out that since FHA requires the seller to pay some of the closing costs, it must be assumed that he would be willing to do the same thing under a Conventional Loan. Since the FHA Loan requires the aforementioned inspection fees, the Plainsmen Group believes this to be in fact a disadvantage. Additionally, while under the terms of a Conventional Loan the monthly cost of Mortgage Insurance goes away as soon as the borrower attains 20% equity in the home, it is paid for the life of the loan with an FHA loan. For these reasons,The Plainsmen Group makes it a practice to show our customers two or more scenarios using their specific circumstances, seeking the best possible fit. No one loan program fits every borrower. For more information regarding your personal situation, call or e-mail a Plainsmen loan officer.