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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our mortgage reporters and editors focus on the points consumers care about most — the latest rates, the best lenders, navigating the homebuying process, refinancing your mortgage and more — so you can feel confident when you make decisions as a homebuyer and a homeowner. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. There are plenty of reasons to call Ohio home, from job opportunities in Cincinnati to a booming scene in Columbus. If you’re a first-time homebuyer in Ohio, the Ohio Housing Finance Agency (OHFA) offers a range of options to make moving there a more affordable reality. The home you’re buying doesn’t technically need to be the first property you’ve ever purchased either; you simply can’t have owned a home within the last three years in order to be eligible. Ohio first-time homebuyer loan programs
OHFA mortgage programs
The Ohio Housing Finance Agency (OHFA) works with mortgage lenders to offer a variety of loans suitable for first-time homebuyers, including: Conventional loans FHA loans VA loans USDA loans To qualify, first-time buyers need to satisfy a number of requirements: Your income and the purchase price of the home must be within OHFA’s , which vary based on where you live. In Franklin County, for example, the income limits for conventional loan products range from $67,120 to $117,320, while the purchase price limit is $348,344 in non-target areas and $425,754 in target areas. (If you know the address of a specific property, you can use the to see if it’s in a target or non-target area.) You must meet the debt-to-income ratio requirement (which varies based on type of loan). Your credit score must be 640 or higher for a conventional, VA or USDA loan, or 650 or higher for an FHA loan. The home must be a single- to four-family home; condominium; modular home or manufactured home. The home must be situated on two acres or less, or five acres or less if in a rural area. In addition to checking off those boxes, all borrowers seeking an OHFA loan need to complete a free homebuyer education course. OHFA Ohio Heroes program
Depending on the type of work you do, you might be able to take advantage of OHFA’s Ohio Heroes homebuyer program, which comes with a discount on your mortgage rate. This offering applies to repeat homebuyers as well as first-timers, but it’s especially valuable if you’re just starting to earn your first paychecks from any of the following jobs: Police officer, firefighter (volunteers included), EMT or paramedic Physician, nurse, nurse practitioner or STNA Teacher (pre-K through grade 12), administrator or counselor The program is also open to veterans, active-duty military members, members of reserves and surviving spouses. Borrower requirements: 640 minimum credit score for conventional, VA or USDA loan; 650 minimum credit score for FHA loan Must meet OHFA Must complete homebuyer education course Ohio down payment assistance
OHFA YourChoice Down Payment Assistance
OHFA’s YourChoice! Down Payment Assistance offers 2.5 percent to 5 percent for a down payment, closing costs or other expenses. Borrowers don’t have to repay the funds provided they do not sell or refinance the property for seven years. Borrower requirements: 640 minimum credit score for conventional, VA or USDA loan; 650 minimum credit score for FHA loan Must meet OHFA Must complete homebuyer education course OHFA Grants for Grads
You might be staring down some student loan debt, but OHFA’s Grants for Grads program can make owning a home a more manageable expense. This program is for first-time homebuyers who have completed an associate’s, bachelor’s, master’s, doctorate or other post-graduate degree within the last four years, and offers forgivable down payment assistance worth 2.5 percent to 5 percent and a discounted mortgage rate. Borrowers don’t have to repay the down payment assistance if they remain in the state of Ohio for at least five years. Borrower requirements: 640 minimum credit score for conventional, VA or USDA loan; 650 minimum credit score for FHA loan Must meet OHFA Must have graduated with a qualifying degree within the last four years Other Ohio homebuyer assistance programs
Mortgage Tax Credit
After you buy your first home, OHFA’s Mortgage Tax Credit program can play a role when it’s time to file your taxes. The IRS already allows you to , and this program can help you lower your tax bill even more. There are two options: Mortgage Tax Credit Plus – If you obtain a loan through OHFA’s first-time homebuyer program, you can score a tax credit of up to 40 percent of your mortgage interest, up to a maximum of $2,000. There’s a trade-off, though: You might pay a “slightly higher interest rate,” according to OHFA’s website. Mortgage Tax Credit Basic – If your loan is not via OHFA, you can still apply for the tax credit, but it will be smaller: 30 percent of your mortgage interest for a bank-owned property; 25 percent for a property in a target area; and 20 percent for all other properties. Local homebuyer assistance programs
If you’re buying a home in Columbus and your income is 80 percent or below the area median income (AMI), the American Dream Downpayment Initiative can give you up to $7,500 of assistance with your down payment. In addition, a similar program in Toledo can help you get $7,500 worth of down payment assistance in non-target areas and $9,500 in target ones. Other first-time homebuyer loan programs
Ohio’s state housing finance authority isn’t the only place to find help as a first-time homebuyer. You can expand your search for monetary assistance to national resources, which can help you get money to cover closing costs, buy a home with a significantly smaller down payment, score major savings on properties in designated revitalization areas, and more. Check out Bankrate’s guide to these other . Get started
Ready to explore your options as a first-time homebuyer in Ohio? Your first step is to determine your eligibility. You can use from OHFA to find out if you qualify. If you do, be sure to compare a range of options from different mortgage lenders — in some counties, OHFA works with more than 20 different lenders. Each of these can have different interest rates and terms, so carefully consider your choices. You can also in Ohio through Bankrate. First-time homebuyer programs in nearby states
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SHARE: Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. Related Articles