Trying to buy your first home in Westerville but not sure how far your budget will go? You are not alone. Between state programs, lender rules, and changing rates, it can feel confusing fast. This guide breaks down Ohio’s first-time buyer programs in plain English, shows what monthly payments might look like at typical Westerville price points, and gives you a clear checklist for next steps. Let’s dive in.

How Ohio helps first-time buyers

Ohio’s state housing agency helps first-time and income-qualified buyers access affordable mortgages and down-payment help through participating lenders. The Ohio Housing Finance Agency (OHFA) partners with approved lenders to offer:

• 30-year fixed-rate mortgages for eligible buyers.
• Down payment assistance that can reduce your cash to close.
• Mortgage Credit Certificates that may lower federal income tax if you qualify.

To use OHFA assistance, you typically must work with an OHFA-approved lender and complete an approved homebuyer education course if you are using down payment assistance. Program details change, so always verify current rules directly with OHFA and your lender.

Loan options you will see

FHA loans

• Minimum down payment of 3.5% for many borrowers with qualifying credit.
• More flexible credit guidelines compared with many conventional loans.
• Upfront and monthly mortgage insurance premiums increase the total payment.

Conventional low-down options

• Fannie Mae HomeReady and Freddie Mac Home Possible allow as little as 3% down for eligible first-time buyers.
• Private mortgage insurance applies if you put down less than 20% and can be cancelled later when you reach enough equity.

VA loans

• For eligible veterans and active service members.
• Often 0% down with no monthly mortgage insurance. A VA funding fee may apply.

USDA loans

• 0% down in qualifying rural areas with income limits.
• Core Westerville addresses are unlikely to qualify, though some outer areas near Franklin County may. Confirm eligibility by address with your lender.

Eligibility basics to confirm

First-time buyer status

Many programs define a first-time buyer as someone who has not owned a principal residence in the past three years. Some exceptions exist, including certain targeted areas and veteran products. Confirm the current OHFA definition.

Income and purchase price limits

OHFA and many local programs set household income and purchase price limits that vary by county, program, and household size. Franklin County limits differ from surrounding rural counties. Check current limits with OHFA and your lender.

Credit score and debt-to-income

• FHA often works for borrowers with scores around 580 and above for 3.5% down. Lower scores may require a larger down payment.
• Conventional low-down options typically favor 620 and above, with stronger pricing for higher scores.
• Lenders often look for a housing payment near 28 to 31 percent of gross income and a total debt ratio near 43 percent. Some allow higher with strong compensating factors.

Property rules

Programs are for primary residences only. Eligible property types can include single-family homes, certain approved condos and townhomes, and some manufactured homes. Approvals for condos and manufactured homes vary by program.

Homebuyer education

If you use down payment assistance, you will likely need to complete an approved homebuyer education course and provide your certificate to the lender. Take it early so it does not slow down your approval.

What this could look like in Westerville

The numbers below are illustrative examples based on mid-2024 style assumptions to help you plan. They are not quotes. Rates, taxes, insurance, mortgage insurance, and program rules change. Always request current Loan Estimates from lenders for an address and price you are considering.

Illustrative example: FHA at $350,000

• Down payment: 3.5% = $12,250
• Loan amount: $337,750 at a sample 6.5% 30-year fixed
• Estimated principal and interest: about $2,140 per month
• FHA mortgage insurance: roughly $200 to $300 per month
• Estimated taxes and insurance: about $465 per month combined
• Estimated total monthly payment: roughly $2,800 to $2,950

Why it helps: FHA can open doors for buyers with smaller down payments or limited credit history. The tradeoff is the ongoing mortgage insurance cost.

Illustrative example: Conventional 3% down at $350,000

• Down payment: 3% = $10,500
• Loan amount: $339,500 at a sample 6.25% 30-year fixed
• Estimated principal and interest: about $2,090 per month
• Private mortgage insurance: roughly $120 to $200 per month
• Estimated taxes and insurance: about $465 per month combined
• Estimated total monthly payment: roughly $2,675 to $2,755

Why it helps: PMI can be cancelled once you build equity to standard thresholds, which may lower your payment over time.

Illustrative example: OHFA loan with down payment assistance at $360,000

• OHFA down payment assistance example: 5% of price as a deferred 0% second loan, no monthly payment if deferred.
• First mortgage: about $342,000 at a sample 6.0% 30-year fixed
• Estimated principal and interest: about $2,050 per month
• Estimated taxes and insurance: about $475 per month combined
• Estimated total monthly payment: about $2,525

Why it helps: Assistance can reduce the cash you need at closing. The second lien may be forgivable or due when you sell or refinance. Confirm your program’s rules and any repayment triggers.

Tip on income fit: If your total housing payment is near $2,525 per month, keeping that around 28 percent of gross income would imply roughly $9,000 per month in gross income. Your other monthly debts also affect qualifying.

How to use down payment assistance wisely

• Know the structure. Assistance can be a forgivable grant, a deferred 0% second loan, or a repayable second loan. Terms vary by program.
• Ask about repayment events. Some assistance is forgiven over time, while others are due when you sell, refinance, or move.
• Confirm stacking rules. Some local grants can be layered with OHFA, while others cannot.
• Factor timing. Assistance can add processing steps. Start education and paperwork early so your closing stays on track.

Steps to get pre-approved in Franklin County

Gather these items before you call lenders:

• Government ID and Social Security numbers for all borrowers
• Two years of W-2s and/or 1099s; if self-employed, two years of tax returns and year-to-date profit and loss
• Two months of bank statements for all accounts
• Recent pay stubs covering 30 days
• Statements for assets like 401(k) and investments
• A list of current debts and monthly payments
• Proof of gift funds and a gift letter if applicable
• DD-214 or other VA documents if seeking a VA loan

What to expect if you use OHFA or DPA:

• Pre-qualification and early homebuyer education
• Full document pre-approval
• Home search and contract aligned with program timelines
• Lender submits OHFA and any DPA applications
• Appraisal, underwriting, and closing

Find and vet the right local lender

• Ask about OHFA experience. Request the names of OHFA-approved loan officers at the company.
• Compare at least two Loan Estimates. Include one from an OHFA-participating lender if you plan to use assistance.
• Review the full cost. Compare rates, lender fees, mortgage insurance, and down payment assistance terms side by side.
• Confirm education requirements. Make sure the lender accepts the course you plan to take.
• Use trusted referrals. Reviews help, but prioritize recommendations from local agents and HUD-approved counselors.

Local resources to know

• Ohio Housing Finance Agency for state program details, income and purchase limits, and lender lists.
• HUD-approved housing counseling agencies for homebuyer education and budgeting support.
• Franklin County and City of Columbus housing offices and nonprofit partners for local grants and classes.
• Community development nonprofits that run first-time buyer workshops in Central Ohio.

Your next steps

• Verify today’s OHFA rules, income and price limits, and required education with an OHFA-approved lender.
• Take a HUD-approved homebuyer education course early if you plan to use assistance.
• Gather your documents and request Loan Estimates from at least two lenders for a Westerville price point you are considering.
• Ask lenders to show cash to close and monthly payment for options like FHA, HomeReady, and OHFA with down payment assistance.
• When you narrow your budget, confirm property taxes and any HOA dues for the specific address.

Ready to map these options to Westerville neighborhoods and listings that fit your budget and timeline? Reach out to Michelle Balzer for a personal, local strategy that puts you in position to buy with confidence.

FAQs

Are OHFA programs only for first-time buyers in Ohio?

• Many OHFA offerings target first-time buyers defined as no homeownership in the past three years, but some products have exceptions such as targeted areas and veteran programs. Confirm the current rules with your lender.

Can I pair down payment assistance with FHA or conventional loans?

• Many assistance programs are designed to work with FHA or conventional loans, though stacking rules vary. OHFA assistance commonly pairs with its own first-mortgage products through participating lenders.

Is down payment assistance a grant or a loan in Franklin County?

• It depends on the program. Assistance can be a forgivable grant, a deferred 0% second mortgage with no monthly payment, or a repayable second loan. Review terms before you apply.

Will using down payment assistance raise my monthly payment?

• If the assistance is a deferred 0% second with no monthly payment, it may not change your monthly payment and will reduce cash to close. Some second liens have repayment triggers or interest, so confirm long-term costs.

Do I need to live in the Westerville home full-time if I use assistance?

• Yes. OHFA and most first-time buyer programs require the property to be your principal residence. Investment properties are not eligible.

Can I buy a condo or manufactured home with these programs?

• Some programs allow approved condos and certain manufactured homes, but additional approvals and restrictions apply. Ask your lender to confirm eligibility for a specific property type.