2024 FHA Loan Limits in Ohio

When applying for a mortgage, a popular option is a loan backed by the Federal Housing Administration (FHA) because of its lenient eligibility requirements. However, FHA loans come with annual loan limits that restrict how much house a borrower can buy. In Ohio, the FHA loan limit in 2024 for a single-family home is $498,257 — except in high-cost areas, where the maximum is $546,250.

Ohio FHA loan limits by county

How are FHA loan limits determined?

Each year, the FHA resets the loan limits according to the guidelines listed in the National Housing Act. To do so, it uses a percentage of the national conforming loan limit set by the Federal Housing Finance Agency (FHFA) for conventional mortgages guaranteed or owned by Fannie Mae or Freddie Mac.

The FHFA set the 2024 national conforming loan limit at $766,550 for the purchase of a one-unit property. To set the “floor,” or the lowest maximum loan amount, the FHA took 65% of this amount, or $498,257. Most counties in the country utilize this loan limit. For areas where the cost of living is higher, the FHA set a “ceiling,” or highest loan amount limit, of $1,149,825, which is 150 percent of the national conforming limit. In areas in Alaska, Hawaii, Guam and the U.S. Virgin Islands where building costs are even higher, the ceiling could be higher.

How to qualify for an FHA loan in Ohio

To qualify for FHA loans in Ohio, homebuyers will need to share employment history, a record of income and other personal and financial information. While eligibility requirements can be less stringent than those with a conventional mortgage, borrowers still have to demonstrate an ability to repay the loan as well as pay a down payment and all closing costs when finalizing the property purchase. As such, lenders will review the following:

→ Credit score: For borrowers paying 3.5% down on the loan, the minimum credit score is 580; the minimum credit score drops to 500 for borrowers paying 10% down.

→ Debt-to-income (DTI) ratio: DTI ratio refers to your total monthly debt divided by your gross monthly income. The maximum DTI ratio for FHA loans is 43%; for borrowers with high credit scores and sufficient cash reserves, the DTI ratio could be higher.

→ Mortgage insurance: FHA loans require borrowers to pay for FHA mortgage insurance to help offset the risk that comes with lower down payment and credit score requirements. Borrowers are required to pay for both upfront and annual mortgage insurance premiums.

→ Income limits: There are no income limits for FHA loans.

→ Residency: All FHA borrowers must use the property as their primary residence for a minimum of one year.

→ Cash reserves: If borrowers have fair or poor credit, the lender may require them to maintain a minimum amount of cash reserves to cover several months of mortgage payments.

Buying a multifamily property with an FHA loan

For borrowers wanting to invest in real estate, it is possible to use an FHA loan to purchase a multifamily home with two to four units. In fact, given the down payment could be as low as 3.5% of the purchase price, it could be quite affordable to purchase a multifamily home. However, borrowers will still need to meet these eligibility requirements as well:

• Credit score: If making a 3.5% down payment, the minimum credit score is 580. If paying 10% or more down, the minimum credit score is 500.
• Debt-to-income (DTI) ratio: Lenders will review your total monthly debt versus your gross monthly income to determine your DTI ratio. FHA lenders generally look for DTIs of 43% or lower.
• Residency: You must live in one of the units on the property.
• Cash reserves: Lenders require borrowers to have enough cash on hand at all times equal to the amount of one monthly mortgage payment.

FHA lenders in Ohio

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

Lender	LendingTree rating	Min. FHA credit score
Flagstar Bank	Read our review	580	Get offers
Guaranteed Rate	Read our review	Not disclosed	Get offers
PennyMac	Read our review	580	Get offers
Rocket Mortgage	Read our review	580	Get offers
BMO Harris	Read our review	580	Get offers