Conventional loans are the most common type of mortgage used by homebuyers in Tulsa. These loans are not insured by the government and typically offer more flexibility in terms and structure for buyers with strong credit and steady income.
If you’re buying a home in Tulsa and have good credit, a conventional loan may be your best option.
What is a conventional loan?
Conventional loans are often referred to as “conforming loans” because they meet the guidelines set by Freddie Mac and Fannie Mae. The most notable guideline is that the maximum loan amount for a single-unit property is $806,500 (except in high-cost areas where higher limits may be available).
Tulsa Conventional Loan Pros
There are several benefits of conventional financing, including:
You can buy a primary residence, second home, or rental property.
You have the choice of fixed or adjustable rates (ARMs), and 10-30 year loan term options
You pay no monthly mortgage insurance with a down payment of 20% or more
Mortgage insurance generally costs less than with government loans
Conventional loan requirements
There are many specific conventional loan programs, all with varying requirements. In general, you will need a FICO score of at least 620. Oftentimes, there is no first-time homebuyer requirement, meaning you can finance your home with a conventional loan, whether it’s your first home or your fifth.
Oklahoma Mortgage Group also offers a conventional loan option for those with no credit score. If you don’t have a credit score, we’ll consider alternative factors, such as cell phone bills, rent payment history, and utilities. Contact us for more information.
Down payment requirements
With most conventional loans, the down payment requirement ranges from 0% to 20%. That’s a pretty broad range, which is great because it means you have options.
To qualify for a conventional mortgage in Tulsa, you’ll typically need:
A credit score of 620 or higher
A minimum down payment of 3% (higher scores may be required for 3% options)
A debt-to-income ratio generally under 45%
Stable income and employment history
Sufficient assets or savings for down payment and closing costs
Private Mortgage Insurance (PMI)
Mortgage insurance is required with most conventional loan programs, although you do have the option to eliminate it with a 20%-or-more down payment.
Conventional vs. FHA Loans
Not sure whether a conventional loan or FHA loan is the right fit for your Tulsa home purchase? Here’s a quick comparison:
Conventional loans may be better if:
You have a credit score above 680
You can put down at least 5%
You want the option to remove mortgage insurance later
You’re buying a higher-priced home that exceeds FHA loan limits
FHA loans may be a better fit if:
You have a lower credit score
You need more flexible qualifying guidelines
You’re a first-time buyer needing 3.5% down with added support
Did You Know?
More than half of all mortgage loans are conventional loans. Freddie Mac and Fannie Mae are the two largest investors.
Start Your Tulsa Mortgage Journey with Confidence
Whether you’re upgrading your home, buying your first property, or investing in Tulsa real estate, a conventional loan can offer flexibility and long-term savings. Our team at Oklahoma Mortgage Group will help you compare options and find the best path forward.
