Mortgage in Ohio
With a relatively low cost of living, Ohio has drawn plenty of attention from homebuyers in recent years. It has a vibrant economy, top universities (Ohio State and Case Western Reserve, for example), and tends to be a very family-friendly place. Home prices are also quite reasonable. Even in in-demand cities, homes are typically in the mid-$200s . If you're looking to move to Ohio, this Ohio mortgage calculator can help you figure out what you'll spend (and potentially save) on your mortgage to live in the Buckeye State.
Ohio Mortgage Calculator: There Are Three Common Mortgage Types
Most Ohioans will have three types of mortgages from which to choose.
- Ohio conventional mortgage: With home prices being relatively affordable, most prospective homebuyers can get a traditional conforming mortgage. These loans require as little as 3% down and a credit score of 620 or higher. However, if you put less than 20% down, you will need to pay private mortgage insurance.
- Ohio FHA mortgage: FHA loans are popular in Ohio thanks to less expensive housing costs. These loans require at least 3.5% down and a credit score of 580+. Usually, FHA loans require a debt-to-income ratio of 43% or lower. Finally, they always need private mortgage insurance.
- Ohio VA mortgage: For veterans and active military personnel, the VA offers loans with as little as 0% down. They also do not require private mortgage insurance, which saves military members even more money.
With Ohio's reasonable housing prices, many homebuyers should be able to find a loan program that works for them. The state also offers some additional benefits for first-time homebuyers.
First-Time Homebuyers in Ohio
The Ohio Housing Finance Agency assists first-time homebuyers looking to live and work in Ohio.
The OHFA homebuyer program provides affordable loan options to help buyers achieve their dream of homeownership. The OHFA program offers 30-year fixed-rate mortgages that have lower interest rates. You can also combine these loans with other assistance.
Eligibility Criteria: Purchase price and income restrictions apply. Borrowers must also complete a homebuyer education class. Buyers must have a credit score of 640 or higher.
The Down Payment Assistance program provides either 2.5% or 5% of the home's purchase price for the down payment and closing costs. Additionally, the state forgives this loan in full after seven years.
Eligibility Criteria: You must meet all the criteria for the OHFA Homebuyer program.
Depending on the loan type, the mortgage tax credit permits people to claim between 20-40% of their home's mortgage interest as a non-refundable tax credit. The maximum benefit is $2,000.
Eligibility Criteria: As with all OHFA programs, you must meet the OHFA Homebuyer program's criteria to qualify for this one.
Ohio Mortgage Calculator: See How Much You Can Afford
With relatively inexpensive housing, a good job market, and plenty of educational opportunities, it's no wonder that families and individuals are considering moving to Ohio. Therefore, if you're thinking of moving to the Buckeye State, use our Ohio mortgage calculator to see how much you'll pay to own a home here!
