First Time Home Buyer Ohio in 2023

Homeownership can be an exciting time in someone’s life. It can also be the most stressful and expensive, so preparing before diving in is essential. This article will outline some programs and grants for first time home buyer Ohio and many other ways to save cash when purchasing a home. Read on for more information on how to save thousands of dollars on your purchase.

How Does First Time Home Buyer Ohio Programs Work

The first time home buyer Ohio programs and grants help first time home buyers to buy a home by paying their down payment and closing costs. The first time home buyer Ohio programs and grants are not only for those making below or above the median income in the state. But it’s also available to all individuals willing to purchase a house.

The program is meant to provide financial assistance to aspiring first time homeowners who do not have enough money for down payment or closing costs. With this program, you can purchase your dream house within 48 hours without hassle.

First Time Home Buyer Ohio Eligibility

In Ohio, a first time home buyer is a person who has not owned a home in the past three years. Most lenders demand at least 20% of the house’s purchase price for the down payment, but requirements vary by lender.

For conventional mortgages, USDA, VA, and FHA 203(k) loans have a minimum credit score of 640. In contrast, other FHA loans require 660 or higher (depending on where you live). Each kind of loan has its own debt-to-income conditions. Check with your mortgage broker or lender for details.

To qualify for most financing programs, borrowers must complete a free home buyer education course on homeownership basics before submitting their application. This requirement can be waived if an applicant meets specific qualifications. This includes being eligible for preferred/specialty financing like VA/USDA/FHA loan or having served in military service.

First Time Home Buyer Loans In Ohio

The first time home buyer loans in Ohio can be a great source of financial assistance for those planning to buy a house. The main aim of this loan is to help individuals get started with their first house purchase.

As long as you are eligible, you will be able to receive the funds that you require at an interest rate that is reasonable and affordable for your budget. This will allow you to avoid paying more than what’s necessary on top of the monthly payments required by your mortgage lenders.

VA Loans

VA Loans are a first time home buyer loan program in Ohio. Veterans and active duty military members are eligible for the VA Loans program, which allows for no down payment or mortgage insurance. As a result, you have the opportunity to purchase a house with as little as 3% down.

The minimum credit score needed for VA Loans is 620 (some lenders will allow for even lower scores). However, this does not mean you can’t get approved if your credit isn’t perfect. Many lenders specialize in helping people with less than ideal credit histories achieve their home ownership dreams.

FHA Loans

FHA loans are the most prevalent loan program among first time home buyers. FHA loans allow borrowers to put down as little as 3.5% of their home’s purchase price limits while still getting competitive interest rates and low monthly payments. This type of loan also applies if you’re a first time home buyer in New Jersey.

To qualify for this FHA loan, you must meet specific requirements. This includes a credit score of at least 500 or less (some exceptions apply), a 10% down payment if your score is 580+, and enough income to afford your mortgage payments. If you meet these requirements, you should be able to get approved for a Federal Housing Administration mortgage easily.

USDA Loans

USDA Loans is one of the first time home buyer loan programs in Ohio. USDA Loans offer affordable home loans for first time home buyers, low to moderate-income home buyers, and rural home buyers in Ohio with no down payment required.

To qualify for a USDA Loan, your credit score must meet specific requirements. The exact qualifications will vary from lender to lender, but typically it’s between 640-690. You could also get FHA or VA loans if you don’t qualify for a USDA Loan because of your credit score or income level.

Low mortgage insurance rates are another benefit of getting approved for a USDA Loan. Additionally, it offers very low-interest rates, which can help save you thousands over the life of your mortgage.

Conventional Loans

Conventional mortgage loans are one of the most popular first time home buyer loan programs in Ohio. They’re backed by Fannie Mae or Freddie Mac and usually require a 3% down payment and a 620 minimum credit score. If you put at least 20% down, you won’t have to pay mortgage insurance. This type of loan also applies if you’re a first time home buyer in North Carolina.

Conventional loan rates are typically lower than FHA loans, but they may not be an option if you don’t meet the lowest credit score requirements or can’t put more than 3%. However, consider that conventional loans come with private mortgage insurance (PMI), which can add thousands of dollars per year to your monthly payments.

Ohio Housing Finance Agency (OHFA) Loan

The Ohio Housing Finance Agency (OHFA) Loan is a first time home buyer loan program in Ohio. These are conventional mortgage loans programs. The OHFA Loan offers down payment assistance to qualified buyers of eligible properties located in Ohio.

The Ohio Housing Finance Agency (OHFA) Loan is designed to help low and moderate-income families become homeowners. This is by providing funds for down payments and closing fees on single-family homes, duplexes, and townhomes financed with an FHA-insured mortgage. 

The program aims to assist first time home buyers who cannot save enough money for the 3% minimum required down payment needed to obtain conventional financing on their own.

First Time Home Buyer Programs Ohio

If you’re a first time home buyer Ohio, several programs may apply to your situation. The following is a list of the most common first time home buyer programs Ohio:

Ohio Heroes

If you’re a first time home buyer in Ohio, try the Ohio Heroes program. This program is specifically for veterans, active duty military members, and National Guard members looking to purchase their first home in Ohio. 

The program offers a discount on your mortgage rate so that it’s 0.5% lower than standard 30-year fixed rates offered by most mortgage lenders in the area. It also applies to repeat homebuyers and first-timers. However, they must complete a free home buyer education course before applying for FHA loan products through eligible mortgage companies participating in this program.

Ohio Grants For Grads

Ohio Grants For Grads is another first time home buyer program in Ohio. This program provides discounted mortgage interest rates to recent graduates within the past 48 months who have not owned a home in the last three years. 

To qualify for this first time home buyer program, you must complete a free homebuyer education course from a HUD-approved counseling agency. You must also meet income limits and have a credit score above 600.

You will be eligible for financing through this program if you purchase your primary residence with 5% down payment assistance or 2% down payment assistance. This also includes additional closing cost assistance up to $10,000 for all applicants combined (3rd party lender). The minimum credit score required is 660, and maximum debt ratios are set at 45%.

Ohio Mortgage Tax Credit

The Ohio Mortgage Tax Credit program is a first time home buyer program that can help you finance your purchase and make it affordable. In addition to the Ohio Housing Finance Agency OHFA mortgage, it’s also a down payment assistance program.

The Mortgage Tax Credit program allows you to receive a tax credit until 40% of the borrower’s yearly mortgage interest is settled for 30 years. However, the property must be your primary residence. 

You can use it annually for as many years as you like. But to receive any benefits from OHFA during those 30 years, you must apply with eligible mortgage companies yearly and submit proof that you used this tax credit with them each year.

First Time Home Buyer Grant Ohio

First time home buyer grants are some of the most popular programs in Ohio because they reduce the amount you have to pay for your new home. If you’re looking to buy a house and haven’t owned a home, you can qualify for one of these grants.

A first time home buyer grant Ohio is an incentive the federal government gives through HUD (Housing and Urban Development). This program helps reduce costs related to purchasing homes by providing financial assistance with down payments and closing fees. 

This type of grant aims to help make homeownership more affordable for those who might not otherwise be able to afford it independently.

OHFA Your Choice Down Payment Assistance Program

The Ohio Housing Finance Agency’s (OHFA) Your Choice Down Payment Assistance program allows borrowers to receive up to 2.5% or 5% of their home’s purchase price limits, depending on the county where they buy a home. The funds can be used for any purpose, including closing costs and down payment assistance.

Borrowers must have a minimum credit score of 640 and meet other requirements to qualify for this first time home buyer grant in Ohio. One of those requirements is completing a free homebuyer education course online or in person before closing on a mortgage loan with OHFA’s Your Choice Down Payment Assistance funds.

Additionally, you don’t have to repay the funding provided you do not sell or refinance your property within seven years after purchasing it with this benefit package from OHFA’s Down Payment Assistance program.

Communities First Down Payment Assistance

Communities First Down Payment Assistance is a first time home buyer grant to help Ohioans with their down payment. This program is designed to help low-income individuals and families purchase homes in qualifying communities across Ohio. 

To qualify, applicants must have an annual household income that doesn’t exceed 80% of the area median income, representing the average annual income earned by people in your area. Depending on your income level, you can apply for a grant from 3%, 4%, or 5% of your next home’s purchase price limits. 

Moreover, because it’s a grant and not an actual loan, you never have to repay any funds received through Communities First Down Payment Assistance. However, sell or refinance your home within five years after acquiring it using this grant money. You may be responsible for repaying up to 25% of what was given back then (not including taxes paid on interest).

Ohio Housing Finance Agency OHFA Advantage

For those in Ohio looking to become first time homeowners, one way to do this is by taking advantage of the OHFA Advantage grant. This grant program can assist you with the down payment and closing fees on a purchase price of a primary residence.

Additionally, suppose your income is 80% or less than the median income in your county. In that case, you also may qualify for an additional 0.5% grant from OHFA. However, some rules apply: The funds must be used toward a conventional mortgage only (i.e., not FHA or VA). In addition, applicants must have paid off any existing liens against their property before applying.

Conclusion

As you can see, many options are available for a first time home buyer Ohio. If you are ready to take the next step and buy your first home, several programs will help make this dream a reality. 

First time home buyers in Ohio should be aware that they may not qualify for every program on this list. However, even if you do not qualify for some of these programs, other ways can still help you purchase your first home.

If you’re a first time buyer or looking to move up and get your next home, HOMES by ARDOR can help. Our real estate agents work with all types of properties across the state, so we can help you find the perfect one for your needs.

Kris Reid

Kris Reid is the CEO of Ardor SEO, a company that helps real estate professionals get more leads and customers to predictably grow their business.
Over the years, Kris acquired extensive knowledge of SEO and its practical applications in various industries, with the main focus on real estate.

In 2021 Ardor launched the Icons of Real Estate Podcast to share proven strategies from the top producing icon agents with the real estate community.

After obtaining the real estate license in 2022, Kris joined eXp Realty and launched Homes by Ardor, the platform that was built to be the fastest way to buy or sell a house. Homes by Ardor also provides leads for its partner companies and realtors.

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