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.
A conventional loan is a mortgage offered by private lenders and backed by Fannie Mae or Freddie Mac. These loans are ideal for borrowers with solid financial histories and the ability to put at least 3% to 5% down.
Tulsa homebuyers often choose conventional financing for its competitive rates, flexible property options, and ability to drop mortgage insurance once equity is built.
To qualify for a conventional mortgage in Tulsa, you’ll typically need:
If you put less than 20% down on a conventional loan, you’ll be required to pay PMI. This protects the lender in case of default. The good news is PMI can be removed once you reach 20% equity—either through payments or increased home value.
PMI costs vary based on credit score and loan size but are often lower than FHA mortgage insurance over time, especially for buyers with good credit.
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:
FHA loans may be a better fit if:
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.
