Down Payment & Insurance

Yes — Ohio offers several down payment assistance programs to help homebuyers with upfront costs:

• Ohio Housing Finance Agency (OHFA) Programs
  • OHFA Down Payment Assistance: Offers 3% of the home purchase price for conventional loans or 3.5% for government loans (FHA, VA, USDA). These funds can be used for down payment or closing costs and are forgiven after seven years unless you sell earlier.
  • YourChoice! Assistance & Grants for Grads: First-time buyers and recent grads may receive 2.5% or 5% assistance. The money helps with down payments or closing costs and is forgiven after 5–7 years.
  • Ohio Heroes Program: Lower interest rates + down payment assistance (2.5% or 5%) for teachers, healthcare workers, veterans, first responders, and other essential workers.

• Local & Regional Programs
  • Columbus – American Dream DPA: Up to $14,999 in forgivable assistance for first-time buyers within city limits.
  • Cincinnati – American Dream Program: Offers up to $14,000, forgiven over five years; income and DTI caps apply.
  • Toledo – Home at Last: Provides $7,500–$9,500, forgiven after ten years; requires a $500 buyer contribution.
  • Cuyahoga County: Assistance through Neighborhood Housing Services can cover up to 10% of purchase price.

You may need mortgage insurance depending on the type of loan you choose and how much you pay as a downpayment. If you are using a conventional loan and put down less than 20%, you’ll likely be required to pay Private Mortgage Insurance (PMI). PMI typically costs between 0.3% and 1.5% of your loan amount per year. PMI can usually be canceled once you’ve built up 20% equity in your home. If you’re getting an FHA loan, mortgage insurance is called Mortgage Insurance Premium (MIP), and it’s required for all FHA loans—regardless of your down payment. MIP includes both an upfront fee of 1.75% of your loan amount and an annual fee between 0.45% and 1.05%, which is paid monthly. Unlike PMI, MIP typically can’t be removed unless you refinance into a conventional loan. If you’re eligible for a VA or USDA loan, you won’t need monthly mortgage insurance at all.

Yes you can get down payment assistance through Local & State Agencies.  This will be set up by your lender First Ohio Home Finance