If you’re a first-time homebuyer, you probably have some questions when it comes to financing your new home. After all, buying a home is a big decision and you’ll want to consider all your options before deciding which mortgage is right for you.

Fortunately, first-time homebuyers in Ohio have a number of attractive loan programs to choose from, including:

State Bond Programs.

The Ohio Housing Finance Agency (OHFA) offers a couple of programs for first-time homebuyers.

OHFA First-Time Homebuyer Program. This program is designed for low and moderate-income residents and offers competitive, fixed rates on either conventional or government-insured (FHA) 30-year home loans.

OHFA Down Payment Assistance Grant. These grants are available to qualified borrowers and may be applied toward the down payment, closing costs or other expenses related to purchasing a home.

Together, the OHFA First-Time Homebuyer Program and Down Payment Assistance Grants help many first-time buyers in Ohio achieve their dream of homeownership.

Federal Loan Programs

FHA Loans. Home loans backed by the Federal Housing Administration (FHA) often require lower down payments and closing costs than most conventional loans. In general, they also have less stringent credit requirements.

In addition to the OHFA First-Time Homebuyer program, there are a number of other FHA loan options available. For example, the FHA offers 203(k) rehabilitation loans, energy efficient mortgages, loans for manufactured or mobile homes, and several others programs tailored to make homeownership more affordable.

Each of these loan programs has its own set of eligibility requirements. To identify which FHA loan program may be right for you, we recommend contacting one of our experienced loan professionals for a no-cost, no-obligation consultation.

VA Loans. Veteran’s Administration (VA) financing is currently available to over 30 million military veterans and active duty service personnel. This number includes new borrowers, as well as those who have already used all or a portion of their loan benefit to purchase a home.

If you are a first-time homebuyer in Ohio who qualifies for VA financing, there are a number of key advantages you’ll want to consider. These advantages include 100% financing options (no down payment), no monthly mortgage insurance premiums, and 30-year flexible repayment plans.

FMHA/USDA Home Loans. If you are a first-time homebuyer in Ohio looking to purchase a home in a rural area, you may want to consider a USDA loan.

One key advantage to FMHA/USDA Rural Housing loans is they are eligible for 100% financing. This makes them the only government-backed loans (outside of the VA program for military veterans) eligible for no-money-down financing. As a result, USDA mortgages make it possible for many lower income borrowers without military experience to buy their own homes.

USDA loans are designed to benefit average to below-average income individuals. As a result, they often carry better financing terms and lower interest rates than comparable FHA or conventional loan programs. Private mortgage insurance is also not required for these loans.

Conventional Loan Programs. Of course, conventional loans are also an option for Ohio residents who don’t meet the eligibility requirements for traditional first-time homebuyer programs. For example, if you exceed the income or purchase price limits for your area, you may still qualify for affordable financing with a conventional loan.

As you can see, there are many financing options available to help you purchase your first home in Ohio. If you have questions about which loan program may be right for you as a first-time homebuyer, contact us today for a confidential and no-obligation consultation!