Oklahoma is a land of sweeping plains, cattle ranches and Native American history. The state is home to wheat and other types of farms, as well as a vibrant natural resources sector featuring mining, petroleum and gas extraction. While its location in America’s “Tornado Alley” means residents see the occasional surprise tornado, what they fortunately don’t see are spiking home prices.

Oklahoma is an affordable place to live. Median 2018 single-family home prices in major cities such as Oklahoma City and Tulsa came in at $161,000 and $164,700, respectively, according to data from the National Association of Realtors. Only two counties in the state — Canadian County and McClain County — have median home prices above $174,000. This still falls far below the national median of $261,600.

Nevertheless, you may find you need extra financing help when you want to buy a house. One option is to apply for a mortgage insured by the Federal Housing Authority (FHA). FHA loans have low down payment requirements and may be easier to qualify for than conventional mortgages.

The FHA sets restrictions on the size of the mortgages it will back. Those limits change every year to keep up with changing home prices. The standard 2019 limit for areas considered “low cost” is $314,827 across the country. Because Oklahoma’s home prices are so reasonable, the FHA loan limit to purchase a single-family home is $314,827 for every county in Oklahoma.

Oklahoma FHA Loan Limits by County

How are FHA loan limits calculated?

The U.S. Department of Housing and Urban Development (HUD) sets FHA loan limits each year. HUD takes what is known as the “baseline conforming loan limit,” the maximum loan size,. Freddie Mac or Fannie Mae will purchase, and uses that as the figure from which FHA loan amounts are calculated. In 2019, the conforming loan limit is $484,350.

The lower end of FHA limits, called the “floor,” is 65% of this figure, or $314,827. That’s the limit for low-cost areas. The higher end or “ceiling” for more expensive markets is 150% of the conforming loan limit, or $726,525.

Here are the 2019 standard FHA limits for all property types:

• One-unit: $314,827
• Two-unit: $403,125
• Three-unit: $487,250
• Four-unit: $605,525

Here are the 2019 standard FHA limits for high-cost areas:

• One-unit: $726,525
• Two-unit: $930,300
• Three-unit: $1,124,475
• Four-unit: $1,397,400

Are you eligible for an FHA loan in Oklahoma?

More than 30% of mortgage loans originated in Oklahoma are FHA loans, according to a 2016 FHA annual report (the most recent report covering this data). To qualify for an FHA loan, you’ll need to meet minimum credit scoreand other requirements, some of which may be added as “overlays” by lenders offering the loans. For more information, visit MagnifyMoney’s complete guide to FHA loans.

Intro

The Buckeye State, with its central location and its famous Ohio River, has a relatively inexpensive housing market. Median single-family home prices in major Ohio cities fall below the U.S. median of $261,600. The most expensive city, by median single-family home price, is Columbus at $200,000, followed by Cincinnati at $169,400, Cleveland at $150,100, and Dayton at $145,000.

If you look at housing prices by county, the story is similar. Only one county in the state — Delaware County — has homes with median prices over $300,000. Many counties’ median home prices don’t even top $200,000.

Still, you may feel you need help with financing a home purchase in Ohio. One attractive option is to apply for a mortgage that’s insured by the Federal Housing Authority (FHA). An FHA loan requires a lower down payment and credit score than conventional mortgages.

If you’re looking to buy a home using an FHA loan in Ohio, you’re in good company. Some 26.5% of all loans originated in the state during 2016 were FHA loans, the most recent year for which FHA has data. A 2018 report noted that 3.84% of FHA loans nationwide originated in Ohio.

Every year, the FHA sets new limits on the amount it will insure home mortgages for. The limits adjust to keep up with changing home prices. In 2019, the price limit is $314,827 for low-cost areas nationwide.

Because median home prices in Ohio are so reasonable, the FHA loan limit for a single-family home is that same $314,827 everywhere in the state except for the Columbus metro area, where it is $356,500.

Ohio FHA Loan Limits by County

How are FHA loan limits calculated?

The U.S. Department of Housing and Urban Development (HUD) sets FHA loan limits based on the conforming loan limit — or how large of a mortgage Fannie Mae and Freddie Mac will purchase. In 2019, the conforming loan limit is $484,350.

The FHA “floor” is the largest mortgage the agency will issue in most of the country and is set at 65% of the conforming loan limit, which is $314,827 for 2019. The FHA “ceiling” applies to high-cost areas and is set at 150% of the conforming loan limit, or $726,525. Outside of a few exceptions, this is the highest mortgage the agency will insure for a single-family home. In other areas, loan limits fall somewhere between the FHA floor and ceiling.

Here are the 2019 standard FHA limits for all property types nationwide:

• One-unit: $314,827
• Two-unit: $403,125
• Three-unit: $487,250
• Four-unit: $605,525

Here are the 2019 standard FHA limits for high-cost areas nationwide:

• One-unit: $726,525
• Two-unit: $930,300
• Three-unit: $1,124,475
• Four-unit: 1,397,400

Are you eligible for an FHA loan in Ohio?

An FHA loan may be able to help you with your homebuying needs, but you will have to qualify. Your credit score, income level and debt-to-income ratio will all be taken into consideration by lenders. To learn more about qualifying for an FHA loan, as well as other information about the process, visit MagnifyMoney’s complete guide to FHA loans.