Ohio First-Time Buyer Programs, Explained

Buying your first home in Delhi Hills can feel exciting and overwhelming at the same time. You might be asking how much cash you need, which loans you qualify for, and whether down payment help is available. You deserve clear answers in plain language before you talk to a lender. In this guide, you will learn how Ohio’s first-time buyer programs work, what to expect in Hamilton County, and simple next steps to move forward with confidence. Let’s dive in.

Ohio first-time buyer options

OHFA programs at a glance

The Ohio Housing Finance Agency (OHFA) partners with approved lenders to offer fixed-rate mortgages and down payment assistance (DPA) to eligible buyers. Programs often come with income and purchase price limits and may require a homebuyer education course to use DPA. You apply through an OHFA-approved lender, not directly with OHFA, and you should verify current DPA amounts, terms, and limits for Hamilton County.

FHA loans

FHA loans are designed for buyers who need a low down payment, usually about 3.5 percent with qualifying credit. FHA requires mortgage insurance, both an upfront premium and an annual premium, and has county-specific loan limits you should check for Hamilton County. FHA appraisals and property standards can be stricter than many conventional loans, which can affect needed repairs before closing.

VA loans

If you are an eligible veteran, active-duty service member, certain National Guard or Reserve member, or a qualifying surviving spouse, VA loans can be a strong option. Many VA buyers can purchase with no down payment and there is no monthly mortgage insurance, though a one-time funding fee applies unless you are exempt. You will need a Certificate of Eligibility and a VA appraisal, and you should verify the funding-fee percentage based on your situation.

USDA loans

USDA loans offer 100 percent financing for eligible buyers and properties in rural or semi-rural areas. Your household income must be under the USDA limit, and the property must be in a USDA-eligible location. Delhi Township is suburban to Cincinnati, so many addresses will not qualify, but you can check property eligibility on the USDA map or ask a lender to verify.

Conventional first-time buyer programs

Conventional options from Fannie Mae and Freddie Mac offer 3 percent down for qualifying first-time or low-to-moderate income buyers. These programs use private mortgage insurance (PMI), which can be removed later when you reach enough equity. In Ohio, conventional loans are often paired with OHFA DPA to reduce upfront cash needs.

Who qualifies and what you need

First-time buyer definition

Many programs define a first-time buyer as someone who has not owned a principal residence in the past three years. Some loans do not require first-time status, but certain OHFA DPA products may, so check details with an OHFA-approved lender.

Income and price limits

Most OHFA and some local assistance programs set income and purchase price caps that vary by county and household size. USDA also uses income limits. FHA, VA, and standard conventional loans do not have statewide income caps, but all loans require you to qualify based on your credit, income, and debts.

Credit score and debt-to-income

FHA is typically more flexible on credit than conventional loans, while conventional first-time programs often reward stronger credit profiles with lower PMI costs. VA does not set a federal minimum credit score, and it focuses on residual income rules, though lenders can set their own thresholds. Most programs look for a total debt-to-income ratio under about 43 to 50 percent, depending on the lender and program.

Homebuyer education

Homebuyer education is often required when you use DPA and for some OHFA products. Completing the course early helps your file move faster later.

Property rules and condo notes

FHA and VA have specific property standards and appraisals, which can lead to repair requests before closing. USDA requires that the property be in an eligible area and meet minimum standards. Condos must be approved by the agency backing the loan, so plan to verify condo approvals early if you are shopping for that property type.

Down payment assistance basics

Common DPA types

• Deferred second mortgage: 0 percent interest, typically repaid when you sell, refinance, or pay off the first mortgage.
• Forgivable second mortgage: Forgiven over a set period if you live in the home, such as a percentage forgiven each year.
• Grant: No repayment required, but these are less common and often targeted to very-low-income buyers.
• Repayable second mortgage: Requires monthly payments or is paid off at sale or refinance.

What DPA can cover

DPA can cover down payment and often part of your closing costs, including prepaid items like taxes and insurance escrows. Some programs can be paired with FHA, VA, USDA, or conventional loans, but you must follow program rules and work with an approved lender.

How DPA affects payments and resale

Deferred or forgivable assistance usually does not add a monthly payment. Repayable seconds do. Any second mortgage can affect refinancing or sale since it may need to be repaid or released at that time, so keep the terms in your closing file.

Closing costs in Hamilton County

Typical buyer fees

Plan for lender fees, an appraisal, a credit report, title insurance, title search and settlement charges, county recording fees, and prepaid taxes and insurance. If the home is in an HOA, there may be association fees. You will also pay for inspections, such as a home inspection or radon test, which are usually paid before closing.

How much to budget

Buyers commonly set aside about 2 to 5 percent of the purchase price for closing costs, depending on the loan type and how fees are handled. On a $200,000 home, that is about $4,000 to $10,000. Costs can be higher if you fund upfront mortgage insurance premiums or need larger escrow deposits.

Seller concessions

In many transactions, the seller can contribute toward your closing costs, subject to program limits. FHA often allows a higher percentage than conventional loans, and VA has its own rules. Ask your lender for the exact concession limit for your loan so your offer can be structured correctly.

Hamilton County items to confirm

Confirm how property tax prorations work, the exact recording fees, and any local title practices. Your title company and lender will itemize these on your Loan Estimate and Closing Disclosure.

Delhi Hills examples

These examples use round numbers to show how down payments, DPA, and closing costs might come together for common Delhi Hills price points. They are hypothetical, so always confirm the latest rates, premiums, and DPA terms with your lender and OHFA.

Example A: Entry price around $200,000

• FHA route: Minimum down payment of 3.5 percent is $7,000. FHA also charges an upfront mortgage insurance premium that has commonly been about 1.75 percent of the loan amount, which could be around $3,500 on this example if not financed into the loan. Estimated closing costs at 2.5 percent might be about $5,000. Cash to close without assistance could total about $15,500, depending on how fees are handled. With OHFA DPA, a deferred second that covers your $7,000 down payment and part of closing costs could reduce your out-of-pocket to inspections and smaller items, depending on the program and lender approval.
• Conventional 3 percent: Down payment of $6,000. No upfront mortgage insurance premium, but monthly PMI applies until you reach enough equity. Closing costs are similar to the FHA example.

Example B: Mid price around $320,000

• Conventional 3 percent: Down payment of $9,600. Using a 2.5 percent estimate, closing costs might be about $8,000. Cash to close could be around $17,600. DPA that covers some or all of the down payment plus part of closing costs can help you keep savings in reserve.
• VA if eligible: 0 percent down is possible, and many buyers roll the VA funding fee into the loan. You still have typical closing costs, often 2 to 3 percent, and sellers can pay some costs if allowed.

How to pick a loan path

Start with your profile

• If you have limited savings and average credit, FHA or OHFA with DPA can be a practical start.
• If you have solid credit and want PMI that can drop off, Conventional 3 percent may fit.
• If you are VA-eligible, VA often provides the lowest cash to close and no monthly mortgage insurance.
• If you are open to areas outside core suburbs and meet income limits, USDA can be a no-down-payment option if the property qualifies.

Plan around property type

Homes that need repairs may face extra requests under FHA or VA rules. Condos must meet agency approval. If you are eyeing a specific neighborhood or condo community in Delhi Hills, loop in your lender and agent early to confirm what will fly.

Smart next steps

Use this simple checklist to move from research to pre-approval:

• Get pre-approved with an OHFA-approved lender if you plan to use DPA, and confirm the lender participates in the program you want.
• Ask the lender to compare FHA, VA, USDA, and Conventional 3 percent options for your credit, income, and target price.
• If you are a veteran or service member, request your VA Certificate of Eligibility early.
• Verify USDA property eligibility for addresses you like, or ask your lender to check for you.
• Complete required homebuyer education now if DPA is likely.
• Request a written Loan Estimate that shows interest rate, monthly payment, PMI or MIP, funding fees, and cash to close for each scenario.
• Discuss seller concessions and how much your loan type allows, then plan your offer strategy.
• Partner with a local agent who understands OHFA and Hamilton County practices so you can avoid surprises and win the right home.

Work with a local guide

Buying in Delhi Hills is about fit, not just financing. You deserve a calm, step-by-step plan that matches your budget, your timeline, and the neighborhoods that feel like home. Our team pairs local fluency with a patient, education-first approach so you can move from scroll to keys with confidence. If you are ready to map the best path for your first home, connect with Michele Donovan to get a clear plan and a lender referral that fits your goals.

FAQs

What is the best first-time buyer program for Delhi Hills?

• The best program depends on your credit, income, savings, and property type. Compare FHA, VA, USDA, and Conventional 3 percent options, and ask an OHFA-approved lender about DPA.

How much cash do I need to buy in Hamilton County?

• Plan for a down payment between 0 and 3.5 percent or more depending on your loan, plus about 2 to 5 percent of the price for closing costs. DPA and seller concessions can reduce what you bring to closing.

Can OHFA down payment assistance cover closing costs too?

• Many OHFA DPA options can cover down payment and some closing costs, subject to income and purchase price limits and program rules. Terms vary, so confirm details with an approved lender.

Is Delhi Township eligible for USDA loans?

• USDA eligibility is address based. Because Delhi Township is suburban to Cincinnati, many homes may not qualify, but you should verify each property’s status with a lender or the USDA map.

Will FHA or VA appraisals require repairs?

• FHA and VA have minimum property standards. If the appraiser notes issues, repairs may be required before closing. Your agent and lender can help you plan for this in your offer.

How long does a first-time purchase usually take?

• Many closings take about 30 to 60 days. Loans with agency-specific steps, such as FHA, VA, USDA, or those with DPA, can add time for appraisal and approvals.

Do I have to be a first-time buyer to use OHFA?

• Some OHFA products are open to repeat buyers, while certain DPA options require first-time status as defined by the program. Check the current OHFA guide or ask an approved lender.