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Ohio First Time Home Buyer Loans

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Ohio First Time Home Buyer – 2019 Loan Programs

Are you looking to purchase your first home? Our first time home buyer programs might be the perfect solution to help you obtain the financing you need to purchase the home you desire. We provide excellent home financing options, and encourage you to compare our offered loan terms to other mortgage lenders.

Ohio First Time Home Buyer Loans

There are 5 types of first time home buyer loans.  You may select different loan terms, such as a fixed rate or adjustable rate mortgage, and the number of years to repay the loan (such as a 30 year fixed rate mortgage).

Types of Mortgages:

  • Conventional Loans – Conventional loans offer the best loan terms to borrowers with good or excellent credit, as well as those who can afford to place a larger down payment.  If you are able to put 20% or more down, you will be able to avoid paying private mortgage insurance (PMI).  However, conventional loans also offer low down payment options, such as programs that only require 3% down.
  • FHA Loans – FHA loans are a good option for borrowers who may not be able to qualify for a conventional loan.  The qualification requirements for FHA loans are much more lenient than conventional loans.  This includes options for home buyers with credit scores as low as 500 (in order to qualify for a 3.5% down payment, you must have a credit score of at least 580).
  • USDA Loans – USDA loans provide home buyers the opportunity to purchase a home without any down payment.  These loans are intended for borrowers with low-to-moderate income.  In addition to not requiring any money down, you can also finance the closing costs into the loan.  This means you can essentially buy a home with no money out of pocket!
  • VA Loans – Active duty military members and veterans can apply for a VA loan which allows you to buy your first home without any down payment.  These loans are not available to the general public, but exclusively to military/veterans.
  • Jumbo Loans – Any loan that does not meet the conforming or FHA loan limits is a jumbo loan.  The FHA loan limits in Ohio are $314,827 for most of the state.  However, the following counties allow up to $356,500: Delaware, Fairfield, Franklin, Hocking, Licking, Madison, Morrow, Perry, Pickaway, and Union.  The conforming loan limits, which are applicable to conventional and VA loans, is $484,350 for the entire state.  If you want to buy a more expensive home than what these limits will allow, and have the income to qualify, we provide what are known as jumbo loans up to $2,000,000.

The above 5 types of loans are the main first time home buyer options that exist.  We can help you determine which loan is the right fit for you based on your particular needs and eligibility.

Ohio Down Payment Assistance Programs 

First time home buyers may be eligible to receive down payment assistance. There is an abundance of down payment assistance programs available in Ohio.  This includes statewide programs, as well as several that are offered locally.

Your Choice! Down Payment Assistance

The Ohio Housing Finance Agency provides an opportunity to borrow 2.5% or 5.0% of the home price, which can be used for your down payment and mortgage closing costs.  The funds are provided as a second mortgage, which means that it is technically a loan.  However, after 7 years the lien will drop off, and you will not owe anything, just as long as you have not sold or refinanced the your mortgage.

Program Requirements

  • This program is only available in the state of Ohio.
  • You must be a first time home buyer (or have not owned a home in the last 3 years).
  • If you use a conventional, VA, or USDA loan, you must have a credit score of 640 or higher.  If you use an FHA loan, you must have a credit score of 660 or higher.
  • You must complete a homebuyer education course.
  • You must meet the income and purchase price limits for your county.

Your can learn more about this program on the Ohio Finance Housing Agency website.

Cincinnati ADDI Program

First time home buyers in Cincinnati may receive up to $5,000 in down payment assistance through the American Dream Downpayment Initiative (ADDI).  The funds are provided in the form of a 5 year forgivable loan.  This means that after 5 years, the money will not need to be paid back (for each year you stay in the home, 20% of the $5,000 (which is $1,000) will be reduced from what is owed.  At the end of the 5 years, you will not owe anything, as long as you stayed in the home.

Program Requirements

  • Purchase a home within the city limits of Cincinnati.
  • Be a first time home buyer.
  • Provide proof of all sources of your income.
  • Complete a homebuyers counseling course.
  • The home purchase price may not exceed $138,000 for an existing home, and $224,000 for new construction.
  • Make 80% or less of the median average income (which these income limits are outlined below).

Income Limits

  • 1 person household – $41,850
  • 2 person household – $47,800
  • 3 person household – $53,800
  • 4 person household – $59,750
  • 5 person household – $64,550
  • 6 person household – $69,350
  • 7 person household – $74,100
  • 8 person household – $78,900

To learn more about this program, visit the city of Cincinnati website.

Columbus ADDI Program

First time home buyers in Columbus may receive up to $5,000 in down payment assistance through the American Dream Downpayment Initiative (ADDI).  How this works, is the funds are provided in the form of a 5 year forgivable loan.  This means that after 5 years, the money will not need to be paid back (for each year you stay in the home, 20% of the $5,000 (which is $1,000) will be reduced from what is owed.  At the end of the 5 years, you will not owe anything, as long as you stayed in the home.

Program Requirements

  • Purchase a home within the city limits of Columbus.
  • Be a first time home buyer.
  • Provide proof of all sources of your income.
  • Complete a homebuyers counseling course.
  • Make 80% or less of the median average income (which these income limits are outlined below).

Income Limits

  • 1 person household – $42,800
  • 2 person household – $48,900
  • 3 person household – $55,000
  • 4 person household – $61,100
  • 5 person household – $66,000
  • 6 person household – $70,900
  • 7 person household – $75,800
  • 8 person household – $80,700

To learn more about this program, visit the city of Columbus website.

Cleveland / Cuyahoga County Down Payment Assistance

If you are looking to purchase a home in Cuyahoga County, you may receive up to 17% of the sales price in down payment and closing cost assistance.  The Cuyahoga County down payment assistance program is provided by the Neighborhood Housing Services of Greater Cleveland.

Program Requirements

  • The home you purchase must be located in Cuyahoga County.
  • You must be a first time home buyer (or not owned any real estate in the last 3 years).
  • The home must be used as your primary residence (no investment properties).
  • You also must satisfy the DTI (debt-to-income) ratio requirements, which are 28% for your front ratio (mortgage payment compared to monthly income), and 43% for your backend ratio (all monthly debt payments compared to your monthly income).
  • The maximum purchase price allowed is $129,000.
  • You must meet the income limits, which are outlined below.

Income Limits

  • 1 person household: $38,050
  • 2 person household: $43,450
  • 3 person household: $48,900
  • 4 person household: $54,300
  • 5 person household: $58,650
  • 6 person household: $63,000
  • 7 person household: $67,350
  • 8 person household: $71,700

To learn more about this program, visit the website for the Neighborhood Housing Services of Greater Cleveland.

Cleveland Heights Down Payment Assistance Loan

The City of Cleveland Heights offers up to $10,000 in down payment assistance for first time home buyers.  The funds are provided as a deferred payment, 0% interest second mortgage.  The money does not have to be paid back until the home is sold, or no longer occupied as a primary residence.

Program Requirements

  • The home you purchase must be located in Cleveland Heights.
  • The home must be used as your primary residence (no investment properties).
  • You must complete a homebuyer education course.
  • The maximum purchase price allowed is $128,000 for a single family home, and $164,000 for a two family home.
  • You must meet the income limits, which are outlined below.

Income Limits

  • 1 person household: $39,600
  • 2 person household: $45,250
  • 3 person household: $50,900
  • 4 person household: $56,550
  • 5 person household: $61,100
  • 6 person household: $65,600

For household sizes not listed, call 216-291-4869.

To learn more about this program, visit the website for the Neighborhood Housing Services of Greater Cleveland.

City of Toledo Down Payment Assistance Grant

First time home buyers in the city of Toledo may be eligible to receive up to $6,500 in down payment assistance.  The funds are provided with a 5 year deferred loan term.  As long as you stay in the home for 5 years, you do not have to pay the money back.

Program Requirements

  • The home must be located in the City of Toledo.
  • Be a first time home buyer.
  • Complete a homebuyer education course.
  • You must contribute at least $500 from your own funds towards the down payment.
  • Meet the income limits, which are outlined below.

Income Limits

  • 1 person household – $37,650
  • 2 person household – $43,000
  • 3 person household – $48,400
  • 4 person household – $53,750
  • 5 person household – $58,050
  • 6 person household – $62,350
  • 7 person household – $66,650
  • 8 person household – $70,950

To learn more about this program, visit the City of Toledo website.

City of Dayton / Montgomery County Down Payment Assistance

First time home buyers in the city of Dayton, and throughout all of Montgomery County, may be eligible to receive up to 10% of the sales price (with a maximum amount of $8,000) in down payment assistance.  The funds are provided as a deferred second mortgage (there are no monthly payments, and the funds do not have to be paid back until you sell the home).

Program Requirements

  • The home must be located in Montgomery County (including the city of Dayton).
  • Be a first time home buyer.
  • Complete a homebuyer education course.
  • You must contribute at least $500 from your own funds towards the down payment.
  • Meet the income limits, which are outlined below.

Income Limits

  • 1 person household – $36,800
  • 2 person household – $42,050
  • 3 person household – $47,300
  • 4 person household – $52,550
  • 5 person household – $56,800
  • 6 person household – $61,000
  • 7 person household – $65,200

To learn more about this program, visit the Dayton HomeOwnership Center website.

Hamilton / Middleton Down Payment Assistance Program

First time home buyers looking to purchase a home in either Hamilton or Middleton may be eligible to receive up to $5,000 in down payment assistance.  The funds are provided in the form of a “forgivable loan”.   How this works is that no monthly payments are required, and the money will not have to be paid back if you stay in the home for 5 years.  If you sell the home before 5 years, a pro rated portion must be paid back (depending on how many years you stayed in the home).

Program Requirements

  • You must contribute at least 1% of the purchase price.
  • The maximum home price allowed is $143,000.
  • Your mortgage payment must also not exceed 30% of your total household monthly income.
  • Your total household income must not exceed 80% of the median income average (these income limits are outlined below).

Income Limits

  • 1 person household – $43,900
  • 2 person household – $50,150
  • 3 person household – $56,400
  • 4 person household – $62,650
  • 5 person household – $67,700
  • 6 person household – $72,700
  • 7 person household – $77,700
  • 8 person household – $82,700

To learn more about this program, visit the Neighborhood Housing Services of Hamilton website.

City of Canton Down Payment Assistance Program

First time home buyers in the city of Canton may be eligible to receive up to $5,000 in down payment assistance.

Program Requirements

  • The property must be located within the city limits of Canton.
  • Be a first time home buyer (or have not owned a home in the last 3 years).
  • You may not have more than $10,000 in liquid assets.
  • Your total household income must not exceed 80% of the median income average (these income limits are outlined below).

Income Limits

  • 1 person household – $36,350
  • 2 person household – $41,550
  • 3 person household – $46,750
  • 4 person household – $51,900
  • 5 person household – $56,100
  • 6 person household – $60,250
  • 7 person household – $64,400
  • 8 person household – $68,550

To learn more about this program, visit the City of Canton website.  You may also view the program brochure.

Ohio First Time Home Buyer Tax Credits

The Ohio Housing Finance Agency offers a Mortgage Tax Credit that allows homebuyers to receive tax credits for a portion of their mortgage interest (up to 40%, with a maximum of $2,000).  This is in addition to the IRS home mortgage interest reduction.  To be eligible for the tax credits, you must meet the following requirements:

  • Be a first time home buyer (or owned a home in the last 3 years).
  • Have a minimum credit score of 640.
  • You must meet the DTI ratio requirements for your mortgage.
  • Complete a homebuyer education course.
  • Finally, you must meet the income and purchase price limits for your county.

Would you like to learn more about the Mortgage Tax Credit Program?

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