FAQs

Most buyers in Ohio end up putting down 7–10%, but that can be significantly reduced with these loan types:

• 0% with VA/USDA (if eligible)
• 3% for a Conventional loan
• 3.5% for an FHA loan (with credit ≥ 580)

We have a variety of loan options to match different needs and situations:

• Conventional Loans: Are the most common and are great if you’ve got solid credit and a steady income. You’ll usually need a down payment of at least 3–5%.
• OHFA Loans: A top choice for first-time buyers with downpayment assistance available for qualified borrowers.
• FHA Loans: Are a good option for some first-time buyers or families with lower credit scores. These loans are backed by the government and only require a 3.5% down payment.
• VA Loans: Are available to veterans, active-duty military, and some military spouses. There is no down payment required, no mortgage insurance, and can contain very competitive rates.
• USDA Loans: Are for homes in certain rural or suburban areas and come with 0% down if you qualify. A great option if you’re buying outside a major city.
• Jumbo Loans: Are for buying a high-priced home that goes over the regular loan limits. It usually requires a higher credit score and a bigger down payment.

At FOHF we offer many loan products:

• Conventional Loans
• FHA Loans
• VA Loans
• OHFA Loans
• USDA Loans
• Jumbo Loans
• Alternative Income Mortgages
• DSCR Loans
• Add government loans
• Add down payment assistance loans
• Add no money down loans
• Ohio hero loans for nurses, police, fire and teachers, as well as other first responders
• And more!

We provide USDA loans, it’s one of our most popular mortgage types.

Not always but usually origination fees and discount points are optional. It depends on your loan and goals.

• • Origination Fees
    •  A fee your lender charges to process your mortgage.
    • Typically cost: 0.5%–1% of the loan amount.
    • Are they required? Usually yes, but it can sometimes be negotiated or offset by a slightly higher interest rate (no-fee loans).
  • Discount Points
    • Optional upfront fees you pay to “buy down” your interest rate.
    • 1 point = 1% of the loan amount.
    • Points can typically reduce your interest rate by 0.25% per point, but this can vary by market conditions.
    • They are best for buyers who plan to stay in the home long-term.

When buying a home, closing costs can be as low as 1% depending on the home’s purchase price.  Closings costs vary depending on the loan amount and the borrower’s profiles (credit score, down payment and loan to value percentage)

Once you apply for a mortgage, we give you a Loan Estimate within three business days. This will break down:

• Estimated closing costs
• Monthly payment
• Loan terms
• Cash needed at closing
• How much house can you afford?

Absolutely, you can lock in your interest rate by using a fixed rate mortgage. We let you lock your interest rate when you apply, protecting you from daily fluctuations.
You can lock in your rate for 30 or 60 days at no fee.
Extensions beyond that, or longer custom periods may incur a fee depending on the loan product.

APR stands for Annual Percentage Rate. It’s the true yearly cost of borrowing money, expressed as a percentage.
It includes:

• Interest rate (the base cost of the loan)
• Lender fees (like loan origination fees, discount points)
• Mortgage insurance (if required)
• Other closing costs (in some cases like the title company’s settlement fee)

While the interest rate tells you how much you’ll pay in interest each year, the APR gives you a fuller picture of what you’re really paying.

First Ohio Home Finance offers both fixed rate and adjustable rate mortgage options. Most borrowers will opt for a fixed rate mortgage, as it’s a powerful tool to lock in a predictable rate until you have the opportunity to refinance.

Interest rate ranges vary based on the loan type, borrower profile, and market conditions.

• Credit Score: Higher scores = better rates.
• Down Payment: Larger down payment often means lower rate.
• Loan Term: Shorter terms usually come with lower rates.
• Loan Type: Government-backed loans (FHA, VA, USDA) have different rate structures.
• Market Trends: Mortgage rates fluctuate daily based on inflation, bond yields, and Federal Reserve policies.

Sites like OHFA’s ohiohome.org show daily updated rates in Ohio.

Your loan payment may change over time, depending on the type of loan you have.

• Fixed-Rate Mortgage: No – Your principal and interest stay the same.
• Adjustable-Rate Mortgage (ARM): Yes – Your rate and payment may change after a set period.
• Interest-Only Loan: Yes – Your payment will increase when you start repaying the principal.
• Balloon Loan: Yes – You’ll owe a large lump sum at the end.

Even with a fixed-rate mortgage, your payment can still vary. While your principal and interest won’t change, your monthly payment can increase if:

• Property taxes go up
• Homeowner’s insurance premiums increase
• Mortgage insurance (PMI) kicks in or falls off

The best way to determine your mortgage payment is by using one of our mortgage calculators to get an idea of what your monthly payment could look like.

Yes, your monthly mortgage payment typically includes both property taxes and insurance costs. This is commonly referred to as “escrow” and can sometimes include PMI. Click here to learn how escrow works.

Pre-qualification provides a general sense of your potential borrowing power based on self-reported information. With pre-qualification, you will have a good idea of your potential budget for buying a home, and the options that come with that understanding. Pre-approval is a stronger commitment. With pre-approval, lenders verify your financial details and may extend a conditional offer. Pre-approval can be a strong advantage when making an offer on a home, as home sellers will prioritize buyers that already have financial approval.

Your credit score has a big impact on both the interest rate you’ll qualify for and the loan options available to you when getting a mortgage. Most loan products and assistance programs require a minimum credit score. If you have poor credit, you may still be able to qualify for some programs, but it’s a good idea to plan ahead of time to work on improving your credit score. 

There are many loan products available for potential homebuyers. If your score is below 580, you will have a hard time qualifying for most mortgage products. As your score rises, you will have an easier time being eligible and landing a desirable interest rate. Click here to learn how to improve your credit score.

We will check your credit and see if you are eligible for any loan savings programs. There may be other things that count towards qualification, but credit score is an important factor.

580 is our target credit score to qualify most people to refinance or purchase a home. Higher scores can mean better rates and lower mortgage insurance, while lower scores may require more documentation or larger down payments.

Yes, First Ohio Home Finance can help with financing all the way down to a 580 credit score with FHA financing.

Yes, you can complete a bridge loan through First Ohio Home Finance to allow you to access the equity in your current home, so you can close on the new home without needing to qualify with 2 house payments.

Yes, as long as you are in the same line of work with no prolonged job gaps you can still be approved to buy a new home through your local lender First Ohio Home Finance.

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 absolutely refinance your mortgage in the future. Many homebuyers choose to refinance to take advantage of lower rates, change their loan term, or tap into their home equity. Depending on your goals, the costs can vary, you can simply take advantage of the lower rates, or you could pay a large portion of the mortgage off in advance to avoid interest, it’s up to you!

Most Ohio homebuyers won’t face prepayment penalties, especially on smaller loans or those arranged through brokers. If a penalty does apply, it’s often limited to the first five years and capped at 1%. Also, FHA, VA, and USDA loans never include prepayment penalties.

We offer fixed loans at 15, 20, and 30 years, with 30-year being most common. You can also choose ARMs or other specialty loan structures depending on your goals. Learn more about the difference between fixed rate and adjustable rate mortgages.

Yes, some lenders can close in as little as about 2 weeks on a refinance or purchase. Especially if they are not a large scale bank or lender. Smaller state lenders like First Ohio Home Finance can close a loan quickly & efficiently.

Your main contact during the mortgage process will be your loan officer or mortgage broker, the person who helped you apply for the loan. They will stay in touch and guide you through each step, from application to closing. Our loan officers are accredited mortgage experts and can help with any questions.

The more organized you are up front, the smoother your approval will go. Your lender may ask for additional items based on your situation, but this list covers the basics for most buyers.

Personal Info Documents

• Government-issued photo ID (driver’s license or passport)
• Social Security number

Income Verification Documents

If employed:

• • Last 2–3 pay stubs
  • Last 2 years of W-2s
  • Last 2 years of federal tax returns

If self-employed/freelancer:

• • Last 2 years of business & personal tax returns
  • Year-to-date profit & loss statement
  • 1099s (if applicable)

Other income (if applicable):

• • Documentation for Social Security, alimony, child support, rental income, etc.

Assets & Savings Documents

• The last 2–3 months of bank statements
• Statements for retirement/investment accounts (401k, IRA, etc.)
• Gift letter (if using gifted down payment funds)

Debt & Credit Documents

• Authorization to pull credit report
• Monthly statements for student loans, auto loans, credit cards, etc.

Home & Property Documents

• Signed purchase agreement (when under contract)
• Homeowners insurance details (when under contract)
• Contact info for your real estate agent and title company (let us know if you need a referral, we have a great network of trustworthy agents)

Other (if applicable)

• Letter of explanation (for gaps in employment, large deposits, etc.)
• Divorce decree or child support orders

The average time to close on a mortgage after your offer is accepted, ranges from 30 to 60 days with most closings happening around 40–45 days. Learn more about the loan process.

If you have questions after closing, you can still contact your mortgage broker even if they are not the loan servicer after closing. Our brokers are happy to assist or point you in the right direction. Give us a call or email and we would be happy to help! Contact us today.

Our loans are usually transferred to a loan servicer soon after closing, which could be:

• A bank or lender
• A third-party loan servicing company

The servicer is the company you’ll:

• Send your monthly mortgage payments.
• Contact for escrow or insurance questions.
• Make future adjustments, such as changing your mortgage deposit information.

We will keep you updated through every step of your loan process. You will always know when a step has been completed, and what comes next.  

In the future, when the opportunity for refinancing occurs, we are happy to assist and find you the best rates!

Yes! We can offer home financing for properties that are for sale by owner, regardless of whether there is a real estate agent involved, or not.

Yes. We can pre approve you now for an already built home, but if you decide to build, we can switch gears on a construction loan.

We can pre approve you now. If your pre approval letter expires before you purchase your home, we can update your pre approval with just a few documents.

Yes, you can buy a home anywhere in Ohio, and we can handle your financing statewide. That includes big metros (Columbus, Cleveland, Cincinnati, Toledo, Dayton, Akron/Canton, Youngstown), suburbs, small towns, and rural counties. We also serve clients in several other states.