First-time home buyer loans with zero down? It is possible for a first-time home buyer in Ohio to do this! I recently sat down with Andy Gaggin, Senior Loan Officer with Movement Mortgage to discuss options.
What loan programs are available for first-time home buyers in Ohio who don’t have a lot of cash to put down on a purchase?
There are a whole lot of options for first-time home buyers in Ohio who perhaps don’t have a full 20 down payment. A lot of home buyers have a misconception that you have to have a 20% down payment in order to purchase a home so there are a couple of options worth talking about.
First of all, we have Conventional Loans one called a HomeReady Mortgage and Home Possible both of which are 97% financing, meaning all a first-time homebuyer needs is a three percent down payment. Three percent is all that they need and the great thing about these programs is that they’re specifically designed for first-time buyers, they have lower rates, lower costs, and lower PMI. Keep in mind, however, there are some income limits so they have to match those income limits but as long as they qualify three percent down is all you need.
Another option worth considering is going to be FHA. This is available for any home buyer, it’s just a three-and-a-half percent down payment, and it’s got flexibility on credit and income so the debt-to-income ratio is a lot more widespread.
There is an option for a zero percent down payment so believe it or not, you can buy a home as a first-time home buyer here in Ohio for a zero down payment it’s called Ohio Housing Finance Agency (OHFA) and it’ll work with conventional financing it’ll work with FHA with VA.
The way it works is it’s five percent of the purchase price that the state of Ohio will pay toward your down payment and closing costs, and it makes the process a whole lot easier than having to come up with anything out of your pocket. Understand that OHFA will take a little bit longer to process for purchase but if you need that zero down payment option you have no cash available that’s a great option for you!
Overall, there are many loan programs available for first-time homebuyers, and it’s important to do research and compare options carefully to determine the best fit for your financial situation.
