Ohio First Time Home Buyer

Are you a first time home buyer looking to purchase a home in Ohio?  On this page you can learn about the different types of mortgage programs that are available to first time home buyers.  You may also view the different down payment assistance programs that are currently being offered in Ohio.

Ohio First Time Home Buyer Loans

Below are some of the mortgage options that may be available to you.

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 rural 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 mortgage that does not meet the conforming loan limits is a jumbo loan.  You can lookup the 2023 conforming loan limits for your county using this conforming loan limits lookup tool.  If you want to buy a more expensive home, and have the income to qualify, jumbo lenders offer loan amounts up to $5,000,000.
• Non-Prime Loans – If you do not qualify for any of the above types of loans, you may consider a non-prime loan.  These programs are helpful to people with a variety of credit issues (such as low credit scores, or a recent bankruptcy).  Non-prime loans do not require any waiting periods after a bankruptcy, and most non-prime lenders allow credit scores as low as 500.  Regardless of your situation, you should consider learning more about non-prime loans if you do not qualify for any of the other types of mortgages featured above.

These are some of the mortgage options that are available to first time home buyers. 

Would You Like to Get Pre-Approved for a Mortgage?
Click Here to Get Pre-Approved for a Home Loan

Upon receiving your request, we will match you with a mortgage lender that offers first time home buyer loans in Ohio.  You will be provided with a free consultation, and the opportunity to get pre-approved for a mortgage.

Ohio Down Payment Assistance Programs

First time home buyers in Ohio may be eligible to receive down payment assistance.  This includes programs offered throughout the entire state, as well as several locally offered programs.  You can learn more about these programs below.  

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 – $43,700
• 2 person household – $49,950
• 3 person household – $56,200
• 4 person household – $62,400
• 5 person household – $67,400
• 6 person household – $72,400
• 7 person household – $77,400
• 8 person household – $82,400

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 – $39,550
• 2 person household – $45,200
• 3 person household – $50,850
• 4 person household – $56,500
• 5 person household – $61,050
• 6 person household – $65,550
• 7 person household – $70,100

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 for an existing home is $158,000, and for new construction it is $227,000.
• 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 – $45,550
• 2 person household – $52,050
• 3 person household – $58,550
• 4 person household – $65,050
• 5 person household – $70,300
• 6 person household – $75,500
• 7 person household – $80,700
• 8 person household – $85,900

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 – $37,050
• 2 person household – $42,350
• 3 person household – $46,650
• 4 person household – $52,900
• 5 person household – $57,150
• 6 person household – $61,400
• 7 person household – $65,600
• 8 person household – $69,850

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

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?

Are You Eligible for Down Payment Assistance?

A mortgage specialist can help you check your eligibility for down payment assistance.  If you would like to receive some help checking what down payment assistance programs you may be eligible for, fill out this form.  We will match you with a mortgage lender that can help you see if you qualify for any down payment assistance.