A Guide for First Time Homebuyers in Ohio: Do’s, Don’ts, and Available Loan Programs

November 19, 2024
Seth Stefanko
Home Buying

Buying your first home is a big step, and for Ohio residents, there are plenty of programs and resources to make the journey smoother. In this guide, we’ll outline some essential do’s and don’ts, introduce Ohio-based loan options designed for first time homebuyers, and provide links to get started on your homebuying journey!

Do’s and Don’ts for First Time Homebuyers

Do’s

Do Set a Realistic Budget
Begin by reviewing your finances and setting a budget. It’s easy to get carried away, but a budget ensures that your home is a source of joy, not stress. A great tool for budget setting is the a Mortgage Calculator Simple Mortgage Calculator.
Do Get Pre-Approved
Pre-approval helps you understand your borrowing power and shows sellers you’re serious. Pre-approval also offers insight into your interest rate options, helping you plan better financially. Learn more about getting pre-approved here.
Do Consider Down Payment Assistance
Ohio has a range of down payment assistance programs that can cover part of your down payment, easing your initial financial burden. Check out Ohio’s down payment assistance programs here.

Don’ts

Don’t Skip the Home Inspection
Home inspections are crucial for understanding the real condition of your new home. Avoid costly surprises by investing in an inspection and learn about what to expect during the process here.
Don’t Overlook Additional Costs
Beyond the down payment and mortgage, consider additional costs like property taxes, maintenance, and homeowners insurance. Not accounting for these can lead to budget issues.
Don’t Max Out Your Budget
While you may be pre-approved for a high amount, sticking to a comfortable mortgage amount allows room for other financial goals and unexpected expenses.
Don’t Increase Your Debts

Before buying a house or during the process, do not take out new debt(i.e. buy a car or buy new furniture for the new home on credit). Increasing debts can lead to a lower purchase price of approval or even denial of the loan.

Loan Programs for Ohio First Time Homebuyers

Ohio offers various loan programs to help make homeownership achievable. Here are some top programs to consider:

1. Ohio Housing Finance Agency (OHFA) Loans

The OHFA provides low-interest, 30-year, fixed-rate loans for first-time buyers in Ohio. Through the OHFA, first-time homebuyers may also qualify for tax credits or mortgage credit certificates.
Apply for an OHFA Loan

2. FHA Loans (Federal Housing Administration)

FHA loans require a down payment as low as 3.5%, making them popular among first-time buyers. They also have more lenient credit requirements, making homeownership accessible for a broader range of buyers. Learn more about FHA loans here.

3. USDA Rural Development Loans

For those looking to buy in rural areas of Ohio, USDA loans are an excellent zero-down option. These loans are specifically for moderate to low-income families and cover certain rural areas. Check your eligibility for a USDA loan here.

4. VA Loans (Veterans Affairs)

If you’re a veteran, active duty, or eligible family member, you can take advantage of VA loans that often require no down payment or mortgage insurance. Learn more about VA loan eligibility here.

5. Conventional Loans with Fannie Mae or Freddie Mac

First-time buyers may find assistance through Fannie Mae’s HomeReady and Freddie Mac’s Home Possible programs. Both programs offer low down payments (as low as 3%) and flexible qualification terms. Find out more here.

Conclusion

Buying your first home in Ohio is an exciting milestone, and with the right knowledge, it can also be a smooth experience. From budgeting wisely to choosing the best loan program, every step brings you closer to finding the right home. Explore the resources linked throughout, and don’t hesitate to reach out to me directly for answers to your questions. I love educating and working with First Time Homebuyers!

Thanks,

Seth

seth@allhomemortgages.com

513-470-9939