Ohio First‑Time Buyer Guide: What You Need to Know

Buying your first home in Ohio can feel like a huge leap, but it doesn’t have to be overwhelming. Below you’ll find the most practical steps to get you from renting to owning, plus the numbers you’ll actually face.

How Much Do You Need for a Down Payment?

The big question is always the down payment. In Ohio you can put down as little as 3% with an FHA loan, which means a $200,000 house could cost you $6,000 up front. Conventional loans often start at 5% to 10%, so plan for $10,000‑$20,000 if you go that route. Look into local down‑payment assistance programs – many Ohio cities offer grants that can cover part or all of that first chunk.

Choosing the Right Mortgage

First‑time buyers usually have three solid options: FHA, VA (if you’re a veteran), or a conventional loan. FHA loans are popular because they forgive a lower credit score and let you roll some closing costs into the loan. VA loans can be 0% down and have no mortgage insurance, which saves cash. Conventional loans need a higher credit score but often have lower long‑term rates once you qualify. Talk to a mortgage broker who knows Ohio’s market to compare rates side‑by‑side.

Credit matters more than you think. A score above 680 gets you the best rates, but you can still qualify with 620‑650 if you’re willing to accept a slightly higher interest. Pay down a few credit cards, avoid new debt, and check your credit report for errors before you apply.

Don’t forget about mortgage insurance. FHA loans require a 0.85% upfront fee plus monthly premiums. Conventional loans need private mortgage insurance (PMI) if you’re under 20% down. That extra cost can add $100‑$150 to your monthly payment, so factor it in when you budget.

Now, let’s talk budgeting. Use the 28/36 rule: keep your housing expenses (mortgage, taxes, insurance) under 28% of your gross income, and total debt payments under 36%. If you earn $60,000 a year, aim for a monthly housing cost below $1,400. This rule helps you stay financially comfortable and avoids loan denial.

When you start house hunting, focus on neighborhoods that match your lifestyle and budget. In Ohio, cities like Columbus, Cleveland, and Cincinnati each have affordable suburbs with good schools and commute options. Use online tools to filter listings by price, down‑payment amount, and school district.

Finally, get a good real‑estate agent who knows first‑time buyer programs. A local agent can point you to properties eligible for Ohio’s home‑buyer tax credits and help you negotiate inspection repairs, which can save you thousands.

Take these steps, stay organized, and you’ll be holding the keys to your Ohio home before you know it. Ready to start? Gather your documents, run a quick credit check, and reach out to a mortgage professional today.