27 10, 2022

Firefighters can use this program for lower mortgage rates

2022-11-30T20:58:26+00:00October 27th, 2022|Loan Products|

Firefighters put their lives on the line to protect the public in times of emergency. These brave men and women are among the most selfless of our public servants. For everything they do to serve our community, firefighters in Ohio are eligible to receive a special discounted rate when applying for a home loan.

Firefighters and other first responders, members of the US armed services, teachers, and members of certain other service careers can apply for a mortgage through The Ohio Housing Finance Agency’s (OHFA) Ohio Heroes program. This special program exists to provide public servants throughout the state of Ohio with reduced mortgage interest rates.

To qualify for an Ohio Heroes mortgage, potential borrowers must meet the following criteria:

  • Must meet income and purchase price limits.
  • Must meet debt to income ratios for your loan type.
  • Must meet credit score requirements.
    • Conventional, USDA, VA and FHA 203(k) Loans: 640 credit score or higher
    • FHA Loans (Non-203(k)): 660 credit score or higher
  • Must work in one of the following careers:
  • Firefighters, police officers, volunteer firefighters, EMTs and paramedics
    • Veterans, active-duty military members or members of reserve components (including surviving spouses)
    • Physicians, nurse practitioners, nurses (RN and LPN) and STNAs
    • Teachers (pre-K through grade 12), administrators and counselors

Homebuyers who choose an Ohio Heroes loan can also receive down payment assistance through the program. This assistance is forgiven after seven years of homeownership. Should the purchaser sell or refinance the home within seven years, the full amount of the assistance must be repaid.

First Ohio Home Finance is one of the top lenders of Ohio Heroes loans, giving you the benefit of our extensive experience when you apply. If you’re a firefighter in Ohio interested in one of these loans, or you would […]

13 10, 2022

Are adjustable-rate mortgages making a comeback?

2022-11-17T14:49:44+00:00October 13th, 2022|Loan Products|

Fixed rate vs adjustable rate mortgage pros and cons.

Potential homebuyers face many challenges in today’s market. With home prices skyrocketing and interest rates on the rise, many are straying from the popular 30-year fixed rate mortgage for the benefits of an adjustable-rate mortgage, or ARM. For buyers in certain financial circumstances, these loans can be an attractive option.

Adjustable-rate mortgages offer a lower initial interest rate compared to fixed-rate loans. This lower introductory rate eventually unlocks and increases gradually based on an outside index. There are many types of ARMs available to borrowers, including those that adjust annually and others that adjust semi-annually. Most ARMs also include caps on the amount that your monthly payment can increase, keeping the interest rate from suddenly spiking.

According to data from the Mortgage Bankers Association, consumer interest in ARMs is currently at its highest level since 2019. ARMs are also making up an ever-greater number of new mortgages issued across the US. One reason for their spike in popularity is the reality of rising interest rates. Thanks to their lower rates, ARMs also feature lower initial monthly payments compared to their fixed-rate counterparts. This benefit is especially attractive in periods of high interest, when fixed-rate loans can lead to bloated monthly payment amounts.

Interest rates under and ARM will increase over the life of the loan, leading to higher monthly payments in the future. For some buyers, the lower rate in the short term still makes good sense. Borrowers who plan to sell their home after a short time are ideal candidates for an ARM, as are those who are confident their income will increase over time.

Another big advantage offered by an ARM has to do with qualifying for a loan. Because of their low […]