Updated
Feb 11, 2020 Buying a home is a huge milestone, but it’s also one that can be quite challenging—especially if you’re limited financially. Fortunately, if owning a home in Ohio is your goal, you’re not alone. Both the federal and state government have programs that can help.
This guide will explain your options.
In this review:
- Ohio first-time home buyer programs & grants
- Ohio down payment assistance programs
- Grants & down payment assistance if this isn’t your first home
- Federal first-time home buyer programs
- Best places to live in Ohio
Ohio first-time home buyer programs & grants
If you’re a first-time home buyer in Ohio, you’ll first want to look toward the Ohio Housing Finance Agency, or OHFA. The agency offers a variety of first-time buyer loans, down payment assistance programs, and even interest rate discounts.
There are more than 100 OFHA-approved lenders, which offer fixed-rate, conventional, FHA, VA, and USDA mortgage loans. The OFHA also has programs for repeat buyers if it’s not your first time purchasing a home.
Highlights:
- Fixed-rate, 30-year mortgage loans
- Can be used in conjunction with OHFA’s down payment assistance programs
Eligibility:
- You must complete a homebuyer education course.
- You must have at least a 640 credit score (for conventional, USDA, VA, and FHA 203(k) loans) or 650 for FHA non-203(k) loans (scores of 650 to 659 will be subject to an additional fee).
- You must fall under the income and purchase price limits for your county—generally, home buyers with a moderate income can qualify.
- The real estate must be less than two acres (in a municipal corporation) or five acres (if it’s outside municipal corporation).
Here are your loan options:
Ohio Heroes
The Ohio Heroes program offers discounted interest rates for homebuyers who are public servants. The program offers conventional, USDA, VA, and FHA loans (including 203(k) renovation loans).
It’s available to Ohio first-time home buyers and repeat buyers and can also be used with OHFA’s down payment assistance programs.
Benefits
- Can be used with down payment assistance
- Available for first-time and repeat buyers
- Offers lower mortgage rates than other home loan options
Eligible occupations
- U.S. veterans, active-duty military members, members of the Reserves, or surviving spouses of these parties
- Police officers, firefighters (including volunteers), emergency medical technicians (EMTs), or paramedics
- Doctors, nurses (RN and LPN), nurse practitioners, or nurse assistants (STNAs)
- Pre-k through 12th-grade teachers, school administrators, or school counselors
Ohio Mortgage Tax Credit
The Mortgage Tax Credit allows you to reduce your annual tax liability by up to 40% of your total mortgage interest paid across the year (up to $2,000).
It can be used in addition to the federal mortgage interest deduction and is based on the location of your property and the type of home loan you receive.
The Basic option offers a 20% to 30% credit based on your property type, while the Plus program offers 40% in exchange for a higher interest rate.
Benefits
- Offers a tax credit of up to 40% of your mortgage interest paid
- Can be used with the federal mortgage interest tax deduction
- Can be used with OHFA’s Your Choice down payment assistance and OHFA Advantage Assistance
Additional eligibility requirements
- You cannot use the RenovateOhio 203(k) loan with this program.
- You must be a first-time home buyer (or have not owned a primary residence in the last three years).
Grants for Grads
Grants for Grads is a discount interest rate program designed for recent college graduates. The program offers built-in down payment assistance, which is forgiven as long you remain in Ohio for at least five years.
Benefits
- Offers down payment assistance of up to 5%
- Offers discounted mortgage interest rates
Additional eligibility requirements
- You must live in the state of Ohio for five years following your home purchase.
- You must have graduated with an associate’s, bachelor’s, master’s, doctorate, or post-graduate degree within the last 48 months. It must be from an accredited college.
Target Area Loan
The Target Area Loan is OHFA’s program to encourage homeownership in economically challenged areas. It offers low interest rates and is available to first-time as well as repeat buyers. The majority of Ohio counties contain at least one target area that is eligible.
Benefits
- Offers low interest rates
- Available to first-time and repeat buyers
Additional eligibility requirements
- You must purchase a property in a designated target area of the state.
RenovateOhio
The RenovateOhio program offers FHA 203(k) mortgage loans to repeat and first-time Ohio home buyers. Designed for purchasing homes that need significant repair or renovation, RenovateOhio loans allow buyers to combine their mortgage balance with the costs of their property’s repairs.
Benefits
- Allows you to finance repair and renovation costs
- Available to first-time and repeat buyers
Additional eligibility requirements
- You must be purchasing a one- to four-family property that has been completed for at least a year.
- You must use a mortgage lender enrolled in the RenovateOhio program.
- You can’t combine the program with the OHFA mortgage tax credit program.
Ohio down payment assistance programs
Most state housing agencies offer some form of down payment and closing cost assistance for local residents, and OHFA is no exception. The agency offers three such programs: two for first-time home buyers and one for repeat buyers.
Highlights:
- Reduces your down payment and closing cost expenses
- Can be combined with many of OHFA’s mortgage loan programs
- Does not need to be repaid if you meet certain requirements
Eligibility:
- You must complete a homebuyer education course.
- You must have at least a 640 credit score (for conventional, USDA, VA, and FHA 203(k) loans) or 650 for FHA non-203(k) loans (additional fees may apply if your score is between 650 and 659).
- You must fall under the income and purchase price limits for your county.
Here are your options:
Your Choice! Down Payment Assistance
OHFA’s Your Choice program offers down payment assistance for use on OHFA conventional, FHA, VA, and USDA mortgage loans. The funds can also be used to pay off closing costs and other expenses. The balance doesn’t need to be repaid as long as you live in the home at least seven years.
Benefits
- Offers assistance between 2.5% and 5% of the home’s purchase price
- Can be used toward down payments, closing costs, or other preclosing costs
- Debt is forgiven after seven years
Additional eligibility requirements
- You must live in the home for at least seven years. If you sell or refinance the home before then, you will need to repay the full balance.
OFHA Advantage
OFHA Advantage is another assistance program you can use to cover your down payment and closing costs.
Total assistance varies between $1,500 and $2,500 based on income, and the balance does not need to be repaid. It is only available on conventional loans and can be used in addition to the Your Choice! Down Payment Assistance program.
Benefits
- Between $1,500 and $2,500 in assistance
- Can be used on down payments or closing costs
- Can be used in addition to the Your Choice program
- Does not need to be repaid
Additional eligibility requirements
- You must make 80% or less than the median income in your county.
- You must be using a conventional mortgage loan.
Grants & down payment assistance if this isn’t your first home
You don’t have to be an Ohio first-time home buyer to take advantage of state assistance programs. In fact, OHFA has options for repeat buyers, too.
Next Home
If you’re an experienced home buyer but still need some assistance with the upfront costs of it all, OHFA’s Next Home program may be an option.
Next Home offers conventional, FHA, VA, and USDA fixed-rate loans and can be combined with both the Your Choice! and OHFA Advantage down payment assistance programs.
Benefits
- Fixed-rate, 30-year loans
- Conventional, FHA, VA, and USDA options
- Can be combined with Your Choice! and OHFA Advantage assistance
Additional eligibility requirements
- You must complete a homebuyer education course.
- You must have at least a 640 credit score (for conventional, USDA, VA, and FHA 203(k) loans) or 650 for FHA non-203(k) loans (additional fees may apply if your score is between 650 and 659).
- You must fall under the income and purchase price limits for your county.
- Your home must serve as your primary residence.
- You must move in within 60 days of your closing date.
Federal first-time home buyer programs
If one of the many first-time home buyer grants in Ohio can’t meet your needs, you might consider a federal assistance or mortgage loan program instead. These first-time home buyer programs are available nationwide and may be able to significantly lower the costs of home buying.
- FHA Loans: FHA loans offer low interest rates and are available to buyers with credit scores as low as 500. You’ll need a down payment of 3.5% to 10%.
- VA Loans: VA loans offer low-rate mortgage loans for veterans and military members. Most VA lenders don’t require any down payment.
- NADL Loans: NADL loans are designed for Native American veterans who are purchasing a property on National Trust Land. They also require no down payment.
- USDA Loans: USDA loans offer financing for rural home purchases. You don’t need a down payment to use a USDA loan.
- Good Neighbor Next Door Loans: This federal program offers discounted homes for public servants. Teachers, police officers, firefighters, and other eligible professionals enjoy 50% off HUD-owned properties.
- Fannie Mae or Freddie Mac Loans: Also called conventional loans, these are options for higher-credit borrowers. You’ll need at least a 3% down payment, but a higher down payment is ideal.
Best Places to Live in Ohio
With so many towns and cities in Ohio, it can be hard to decide where to buy a home.
To help you with this problem, we have included rankings of the top 50 places to live in Ohio below. These rankings come from Area Vibes and consider a variety of important factors including crime, employment, housing, schools, weather, amenities, and cost of living.
| Rank | City | Livability Score |
| 1 | Grandview Heights | 92 |
| 2 | Hilliard | 91 |
| 3 | Worthington | 90 |
| 4 | Forestville | 89 |
| 5 | Westerville | 89 |
| 6 | Beckett Ridge | 89 |
| 7 | Gahanna | 89 |
| 8 | Mason | 89 |
| 9 | Madeira | 89 |
| 10 | Shaker Heights | 88 |
| 11 | Bexley | 88 |
| 12 | Bay Village | 88 |
| 13 | Loveland | 88 |
| 14 | Avon Lake | 88 |
| 15 | Montgomery | 88 |
| 16 | Pickerington | 88 |
| 17 | Upper Arlington | 88 |
| 18 | Landen | 87 |
| 19 | Fairlawn | 87 |
| 20 | Monfort Heights | 87 |
| 21 | Delaware | 87 |
| 22 | Medina | 87 |
| 23 | Springboro | 87 |
| 24 | Grove City | 87 |
| 25 | Dublin | 87 |
| 26 | Bellbrook | 87 |
| 27 | Norton | 86 |
| 28 | Lakewood | 86 |
| 29 | Reynoldsburg | 86 |
| 30 | Portage Lakes | 86 |
| 31 | Kettering | 86 |
| 32 | Munroe Falls | 86 |
| 33 | Perrysburg | 86 |
| 34 | Blue Ash | 86 |
| 35 | New Philadelphia | 86 |
| 36 | Fairview Park | 86 |
| 37 | Wyoming | 86 |
| 38 | North Canton | 86 |
| 39 | Rocky River | 86 |
| 40 | Sylvania | 86 |
| 41 | Wadsworth | 86 |
| 42 | Deer Park | 85 |
| 43 | Belpre | 85 |
| 44 | Parma | 85 |
| 45 | Canal Winchester | 85 |
| 46 | North Olmsted | 85 |
| 47 | Hudson | 85 |
| 48 | Powell | 85 |
| 49 | Canfield | 85 |
| 50 | Marietta | 85 |
Bottom Line: If You’re an Ohio First-time Home Buyer, You Have Help
As you can see, Ohio first-time home buyers have lots of options—both locally and via various federal mortgage programs. As you shop for a loan, compare rates from several of the best mortgage lenders and ask if they participate in any of these programs.