If you are living in Ohio but have never bought a home, this is the article for you!
Many people think they could never buy a home, especially if they have never bought one before. However, there are plenty of programs to help people just like you, to get their very own home!
National First-Home Buyer Programs
There are national and state mortgage programs that are made to make home ownership more affordable.
Conventional Mortgage:
- Best for low down payments and limited mortgage insurance premiums
- Can put as little down as 3% – if mortgage meets requirements set by Fannie Mae & Freddie Mac
- Putting at least 20% down means that buyers won’t have to pay mortgage insurance
FHA Loans:
- Best for low credit score & low down payment
- Federal Housing Administration allows down payments as low as 3.5% for people with good credit (580 or higher)
- Insured loans for borrowers with scores of 500 – but needs a 10% down payment
VA Loans:
- Best for military & low down payment
- Assists service members, veterans & their families to buy homes
- Competitive interest rates
- Little or no down payment or mortgage insurance required
USDA Loans:
- Best for low down payments – USDA loan is a zero-down-payment mortgage
- Rural and suburban home buyers
- Loan issued by U.S. Department of Agriculture through the USDA Rural Development
State Loans
The state of Ohio offers a loan specifically for people who live in the state, to help citizens of the state in particular.
OHFA Loan
- The state loan through the Ohio Housing Finance Agency (OHFA)
- Helps with a fixed-rate loan for 30 years
- First time buyers are the only people eligible for this loan, however people who have not owned a home for more than three years are also eligible, as they are considered “first time buyers” after three years have passed
- Down payment assistance can be forgivable after seven years
The OHFA Loan is only available to some people who meet certain requirements:
- People who have a credit score of 640 or higher
- Have to participate in home buyer education
