2025 Ohio First-Time Homebuyer Programs and Loans

Purchasing your first home can be financially challenging. You need money for a down payment, closing costs, lender fees and more. Fortunately, in Ohio, there are programs to help first-time homebuyers.

Here’s what you need to know about first-time homebuyer loans and grants in the Buckeye State and what it takes to qualify for them.

First-time homebuyer programs in Ohio

First-time homebuyers in Ohio can find a variety of programs to make buying more affordable, especially buyers who are considered low-income. Some Ohio first-time homebuyer programs include:

• Your Choice! Down Payment Assistance: Good option for homebuyers with low or moderate incomes.
• Grants for Grads: Good option for recent graduates of an accredited college or university.
• Ohio Heroes: Good option for those homebuyers who serve the public, including teachers, health care providers, police officers and more.
• Communities First — Ohio: Good option for first-time and repeat homebuyers with low or moderate incomes.

Your Choice! Down Payment Assistance

The Ohio Housing Finance Agency’s (OHFA’s) Your Choice! program gives homebuyers with low and moderate incomes their choice of down payment assistance (DPA): either 2.5% or 5% of the home’s purchase price. The funds can be used for your down payment, closing costs or related expenses, and they’re fully forgiven once you’ve lived in the home for seven years.

Requirements

• Minimum credit score of 640 for conventional, USDA and VA loans
• Minimum credit score of 650 for FHA loans
• Income and purchase price limits vary by county (listed here)
• Debt-to-income (DTI) ratio requirements are specified by loan type
• Complete homebuyer education program

Pros and cons

Grants for Grads

OHFA’s Grants for Grads program provides an incentive for college grads to buy homes in Ohio. The program offers a discounted mortgage interest rate as well as a 2.5% or 5% down payment assistance grant for recent graduates of accredited colleges and universities. The loan is fully forgiven once you’ve lived there for five years. Some or all of the loan must be paid back if you move before five years.

Requirements

• Minimum credit score of 640 for conventional, USDA and VA loans
• Minimum credit score of 650 for FHA loans
• Must meet DTI ratio based on your loan type
• Purchase price and income limits (listed here)
• Associate’s, bachelor’s, master’s or post-graduate degree obtained within the prior 48 months from an accredited college or university
• Complete homebuyer education program

Pros and cons

Ohio Heroes

The Ohio Heroes program from OHFA gives homebuyers a 0.25% mortgage discount and either a 2.5% or 5% forgivable DPA loan. The Heroes program is available for qualifying public servants, including certain teachers, nurses and veterans.

Requirements

• Minimum credit score of 640 for conventional, USDA and VA loans
• Minimum credit score of 650 for FHA loans
• Must be a veteran, full-time service member or surviving spouse, first responder, qualified health care practitioner or qualified educator
• Meet income and purchase price limits (listed here)
• Meet DTI ratio by loan type
• Complete homebuyer education program

Pros and cons

Communities First —Ohio

Communities First — Ohio is homebuyer assistance available to homebuyers throughout the state. This program provides first-time and repeat buyers with mortgage financing, along with a 3% to 5% grant for their down payment or closing costs.

Requirements

• Minimum credit score of 640
• Earn no more than 115% of area median income (AMI)
• Occupy the property as your primary residence within 60 days
• DTI no greater than 45%

Pros and cons

Ohio first-time homebuyer qualifications

The qualifications for FTHB programs in Ohio vary, but most require a credit score of at least 640, which is well below the state average of 716, according to Experian. You may also need to meet certain income requirements and find a home that’s within certain price limitations. Depending on the program you choose, here are the steps to apply:

Steps to apply for a first-time homebuyer program

Step 1: Choose the right program

Ohio offers several homebuyer programs, some of which can be combined for maximal savings. The first step to applying for a program is determining the right one for you. Review the requirements, including necessary credit score and income limits, before choosing a program to make sure you qualify, then read through the terms carefully to ensure it’s a good match.

Step 2: Ask for help

If you have any questions about the programs or application process, don’t hesitate to reach out to an HUD-approved housing counselor. These government-trained experts can offer independent guidance at any step of the process, from choosing a program to applying and what to expect next.

Step 3: Find an approved lender

For many FTHB programs, the first step is to contact one of the approved mortgage lenders. A loan officer at a partnering bank, credit union or mortgage company can preapprove you for a loan, answer questions about the program and help you apply.

Step 4: Apply through your lender

After you choose a lender, you’ll need to apply for the program just as you would any other mortgage. The application process will include providing documentation to verify you meet the various requirements, such as W-2 or tax forms to verify your income. It’s essential to get preapproved for a mortgage even before you start house shopping to show sellers you’re a serious buyer.

Understanding Ohio first-time homebuyer down payment assistance

One of the typical challenges facing first-time homebuyers is coming up with a down payment. In Ohio, there are several types of assistance that can help. Out of the 74 DPA programs in Ohio, about 74% of them had available funding as of Q4 2024, according to Down Payment Resource’s homeownership program index.

Here are the most common types of assistance you can expect from a homebuyer program.

Deferred second mortgage

Requires repayment? Yes, when the home is sold or refinanced.

A deferred second mortgage is an additional lien on your home. It provides funds up front to help cover closing costs and/or the down payment. It’s repaid when the home is sold or refinanced.

Forgivable second mortgage

Requires repayment? No, not if you live in the home for the required period of time.

A forgivable second mortgage is also a second lien on your home. However, in this case, the funds won’t have to be repaid as long as you live in the home for the required period of time.

Grant

Requires repayment? Some types of grants require repayment if the home is sold within a certain period of time.

Grants are given to homebuyers to pay their down payment and closing costs and generally won’t require repayment. However, depending on the type of grant, repayment could be required if the home is sold within a certain period.

Mortgage credit certificate (MCC)

Requires repayment? No, if you live in your home for a required period of time.

Some first-time homebuyers can earn a tax credit of up to $2,000 of the mortgage interest they pay. To be eligible, you must meet the mortgage credit certificate requirements, which include income and purchase price limits.

Keep these things in mind about DPA programs

When considering DPA programs, make sure you fully understand the terms. While some offer loan forgiveness, that may only apply if you own the home for a certain amount of time. That means if you move, refinance or sell the home before the loan is up, you may have to pay it back.

How much of a down payment do I need to buy a house in Ohio?

The amount you’ll need for a down payment in Ohio will vary depending on a number of factors, including the type of loan you secure and the size of your mortgage. However, a recent LendingTree study found that the average down payment for first-time homebuyers in the state of Ohio was $28,728 in 2024.

Can I qualify for down payment assistance in Ohio?

To qualify for DPA in Ohio, you must meet the following requirements:

• Meet credit score and income limit requirements
• Complete homeowner education courses, if required
• Be purchasing a home in an eligible area
• Use the home as your primary residence
• Qualify with a participating lender

How do I apply for Ohio first-time homebuyer down payment assistance?

The first step to apply for first-time homebuyer DPA is finding a participating lender. The lender can then walk you through the application process. Alternatively, you can get guidance from an HUD-approved housing counselor, who can discuss the steps for various programs.

 Here’s what you need to know about the process of applying for a home loan.

Other first-time homebuyer loan programs

Conventional loans

Conventional loans are those that aren’t backed by the government. They typically come with more stringent requirements compared to other loan types. However, for those who qualify, conventional loans are typically the most cost-effective home loans.

FHA loans

FHA loans are backed by the Federal Housing Administration. They’re generally easier to qualify for than conventional loans but also come with some extra costs, such as two forms of mortgage insurance. FHA mortgage rates are typically lower than conventional loan rates.

VA loans

VA loans are guaranteed by the U.S. Department of Veterans Affairs. They’re available to active-duty service members, veterans and surviving spouses. They typically offer lower interest rates and closing costs and don’t require a down payment.

USDA loans

Backed by the U.S. Department of Agriculture, USDA loans are available to low- and moderate-income borrowers to build or purchase a single-family home in eligible rural areas. Similar to VA loans, USDA loans don’t require a down payment.

What are the best first-time homebuyer loans?

Which loans are best for first-time homebuyers? That depends on your personal circumstances. Factors to weigh include your income, credit score and the amount you have ready to put down as a down payment. In some cases, your profession and where you intend to purchase a home may be factors, as well.

Home price trends in Ohio’s major areas

Like most of the country, Ohio has seen an increase in housing prices in recent years. In 2024, housing prices in Ohio rose by 6.6% — which is well above the national average of 4.3%. Over a five-year period, housing prices in Ohio have increased by nearly 62%.

Home prices in the Columbus metro area — home to the state capital — rose by 6.96% year over year between 2023 and 2024. In other areas, they increased even more. The Cleveland-Elyria metro area saw an increase of 6.77%, the Akron metro saw an increase of 7.28% and the Toledo metro area topped that with a 8.69% year-over-year increase.

Is there a first-time homebuyer tax credit in Ohio?

There’s no longer a federal first-time homebuyer tax credit. Ohio, however, offers an MCC, which gives first-time homebuyers a tax break. With the MCC, you can reduce your federal tax bill by as much as $2,000 a year while you’re paying off your mortgage.

What are the current mortgage rate trends in Ohio?

Nationally, mortgage rates are expected to remain higher in 2025 than they were before the pandemic. Rates are expected to remain steady at 6% to 7% throughout the year, according to the current mortgage rate forecast from LendingTree. Fannie Mae’s Economic and Strategic Research Group projects mortgage rates will end 2025 at around 6.5% and 2026 at around 6.3%.