Forgotten Your Password?

Need to Register?

First Time Home Buyer in OhioIf you are looking to buy your 1st home, you've come to
the right place. Fill out the form on the right to get started.

  • Get advice from our community
  • Instant quotes, competitive rates
  • Be in control, choose the right lender
First Time Home Buyers

Get a Free Quote! Speak to an expert today!

Secure Form Privacy Policy | Terms of Use.

Today’s Rates for First Time Homebuyers in Ohio

Tuesday, August 22, 2017

Mortgage rates are at 3.97% for the 30 year fixed loan program and at 3.16% for the 15 year fixed. As for variable rates, the 5/1 ARM rate currently stands at 3.27%. Check out FHA and VA rates as well if you are doing low or no down payments.

Ohio First Time Home Buyer Checklist

  1. Decide on your loan program options. If you're moving to an eligible area, you may qualify for a zero down payment loan through USDA. Veterans may be eligible for VA loans, which do not require cash down. The content in the paragraphs below should give you an idea of where you may fall. 
  2. Get familiar with your credit score. Your credit should fall somewhere above 600, but few lenders accept scores in the high 500s. If your credit score needs a boost, work on improving it before you try to take out a mortgage. Once annually, you're able to request a free credit report from the three major credit bureaus, Equifax, Experian or TransUnion. 
  3. Shop interest rates from different lenders in your part of Ohio. Choose one who not only provides a great offer, but carries a high rating from the Better Business Bureau.
  4. Get pre-approved. Once you've picked a lender, provide income documentation with your last two pay stubs and tax returns from the past two years. 
  5. Determine a budget. You could be pre-approved for a loan amount that is bigger than you had anticipated, but do not base affordability on the sum provided. Remember - pre-approvals are not guaranteed, and only you know what you can truly afford. 
  6. Begin home shopping. Be sure to avoid making extravagant purchases, taking out new installment loans, or anything else that could weaken your financial standing. Lenders will check your accounts again before closing your loan.  

Low Down Payment Loans Through FHA

If you’re a first time home buyer without a lot to put down, an Ohio FHA loan may accommodate you. FHA loans are backed by the government and designed to help home buyers with limited upfront funds receive financing.

  • Down payment: 3.5%
  • Minimum acceptable credit score: 580 (varies)
  • Mortgage insurance: Upfront (1.75% loan amount) and monthly
  • Property guidelines apply and are verified via home inspection

You can find additional information about FHA loans on the Ohio page of the FHA website.

No Down Payment Loans Through USDA

The United States Department of Agriculture backs home loans for zero down to Ohio home buyers looking to move to or live in rural areas. Find out if your buying city is eligible by searching the USDA's property map. Note that popular areas like Akron, columbus, and Toledo are not eligible. 

  • Down payment: None required; financing up to 102% available depending on home appraisal
  • Minimum acceptable credit score: 620
  • Mortgage insurance: Upfront (2% loan amount) and monthly
  • Income maximums apply 

Ohio Grant and Assistance Programs

Ohio first time home buyers have several opportunities for affordable financing, tax credits, and down payment assistance through the Ohio Housing Finance Agency (OHFA):

Target Area Loan Product: Buyers who move to an economically distressed area can qualify for this low interest rate mortgage option. Target areas include Cincinnati City, Cleveland City, and others you can find on the target area list

Down payment assistance is available for Ohio home buyers who qualify for the OHFA's first time home buyer programs as well. The funds received can be as much as 2.5% the property purchase price. The down payment is procured via the facilitation of a 0%, no-payment-due second mortgage. Find out more information about OHFA down payment assistance

A Mortgage Credit Certificate (MCC) is also available, and the amount varies by area. This tax credoit program enables home buyers to claim a portion of their annually paid mortgage interest in order to reduce the federal withholding on their pay checks. MCC program participants will ideally have enough cash freed up every month to aid making mortgage payments. 

The OHFA also provides programs that facilitate renovation loan and college graduate gift funds for down payment. The latter is available through the Grants for Grads product. You can learn about each of these programs on the OHFA home buyer official site: www.ohiohome.org/homebuyer.

Local Cities

user suit Lenders in: Ohio.

Subscribe to our news feed.