Ohio FHA Loan - Requirements 2024 - Is FHA good for You?

FHA Loan Ohio

The Ohio FHA Loan Program is insured by the Federal Housing Administration, a federal agency within the United States Department of Housing and Urban Development (HUD). FHA loan programs are available to all buyers and are designed to promote homeownership for many Americans.

FHA Loan Ohio Requrements

FHA loan Ohio Requirements 2024

Determining your eligibility for an Ohio FHA Mortgage is straightforward. FHA will look at a couple of key factors to determine if borrowers meet Ohio FHA loan requirements:

  1. Verification of Your Income: You'll need to provide proof of a steady income for the past two years.

  2. Verification of Your Credit: A minimum credit score of 620 is needed. Lower credit scores may require a higher down payment. FHA wants to ensure that borrowers have the income to pay for the home they live in.

 
Filed for bankruptcy, no problem!  

CREFCO Financial Group will work with you to obtain an FHA loan, even if you filed for bankruptcy. Our Ohio FHA licensed experts have helped many customers who have filed for bankruptcy become happy homeowners! You can "Get Pre-Approved" for an FHA loan with a 620 credit score. 

  • Chapter 7: If your bankruptcy has been discharged for 24 months, you can still qualify for a home loan.

  • Chapter 13: If you are 1 day out of bankruptcy and have paid all payments to the trustee on time, you can still qualify for a home loan.


Is it a good idea to get an FHA loan?

Benefits of an Ohio FHA loan include:

  • High Loan Limits: FHA mortgage loans will allow financing up to $765,600 in approved areas.
  • Low Down Payment: Only a 3.5% down payment is required, which can be structured with a 0% down payment in many situations, including using gifts from family members.
  • Flexible Closing Costs: Closing costs can come from seller concessions that allows the seller to contribute up to 6% toward closing costs.
  • Lower Monthly Mortgage Insurance Premiums: Under certain conditions, automatic cancellation of the premium is possible.
  • No Prepayment Penalties: The right to prepay loans without penalty.
  • Stable Fixed-Rate Mortgage: A stable 30-year fixed-rate mortgage with no rate adjustments.
  • Versatile Usage: Can be used for purchase and refinance a home.
  • Manufactured Homes: Financing available for manufactured homes on a permanent foundation.

 

How Do I Get Pre-Approved for an FHA Loan?

Take 3 Simple Steps to "Get Pre-Approved":

  1. Tell Us Your Goals: At CFG, our main goal is to understand your needs and prepare the best plan for you to obtain approval using the Ohio FHA loan program.

    • What is the maximum mortgage payment you want to pay per month?
    • How soon do you want to move?
    • What is most important that you want to accomplish with your new loan?

  2. Complete the Online "Get Pre-Approved" Form: One of our FHA Loan Experts will contact you for the next steps.

  3. Develop a Plan that works for you based on the following:
      
    • What county are you looking to buy in?
    • How would you categorize your credit and what type of credit do you have?
    • What is your source of income?
    • We will calculate your Debt-To-Income Ratio to complete your Pre-Approval.

Finally, you can begin your home search!


FHA Bridal Registry Program:

Are you planning to get married?

Check out the benefits of the FHA Bridal Registry Program: HUD allows couples who are planning to get married to establish a bridal registry savings account that will help them accumulate a down payment necessary to purchase their first home together.

A bridal registry account is also available for other situations where an individual or individuals can receive gifts.

Benefits of FHA Mortgage Bridal Registry:

  • Interest-Bearing Savings Account: Borrowers must open an interest-bearing savings account with a financial institution supervised by a federal or state agency.

  • Donor Register: Borrowers must provide a register showing the names of all donors and the dollar amount that has been deposited into the bridal registry account.

  • Flexible Marriage Requirement: No requirement for bridal couples to be married prior to closing the FHA loan.

FHA Loan Limits in Ohio (2024)

FHA loan limits in Ohio vary by county and are adjusted annually. Here are some examples for 2024:

  • Cuyahoga County: $420,680
  • Franklin County: $396,000
  • Hamilton County: $395,650
  • Montgomery County: $356,362

For detailed information on loan limits in other counties, visit the HUD website or consult with your lender.

Comparison with Other Loan Types

FHA loans offer unique advantages and are often compared with other types of loans. Here’s how they stack up:

  • FHA vs. Conventional Loans: FHA loans offer lower down payments and are easier to qualify for, making them ideal for first-time homebuyers to get pre-approved. Conventional loans do not include mortgage insurance after the loan-to-value ratio drops below 80%.
  • FHA vs. VA Loans: VA loans are available only to veterans and active-duty military personnel, offering no down payment and no mortgage insurance. FHA loans, on the other hand, are available to all qualified buyers.
  • FHA vs. USDA Loans: USDA loans offer 100% financing for homes in rural areas. FHA loans are more widely available and do not have location restrictions.
  • FHA vs. Jumbo Loans: Jumbo loans are used for properties that exceed conventional loan limits. They often have stricter credit requirements than FHA loans.

Common Questions About FHA Loans in Ohio

  • What are the FHA loan limits in Ohio?
    The loan limits for FHA loans in Ohio vary by county. For most counties, the limit for a single-family home in 2024 is $498,257, but this can be higher in some areas.

  • Can I get an FHA loan in Ohio with bad credit?
    Yes, FHA loans are available to those with lower credit scores. A higher down payment might be required.

  • What is the debt-to-income ratio for FHA loans?
    Your total monthly debt payments, including your mortgage, should not exceed 43% of your gross monthly income. However, borrowers with higher credit scores might qualify with higher DTIs.

  • What is the minimum down payment for an FHA loan?
    The minimum down payment for an FHA loan is 3.5% of the home's purchase price. This can be reduced to 0% with down payment assistance programs or gifts from family members.

  • Are there closing costs associated with FHA loans?
    Yes, there are closing costs, and seller concessions can be contributed by the seller of up to 6% toward your closing costs. It's essential to discuss closing cost options with your lender.

  • Can FHA loans be used for refinancing?
    Yes, FHA loans can be used for refinancing existing mortgages.

  • What types of properties are eligible for FHA loans?
    FHA loans can be used to finance single-family homes, multi-unit owner occupied properties, and manufactured homes on permanent foundations.

  • Is there a prepayment penalty with FHA loans?
    No, FHA loans do not have prepayment penalties, allowing borrowers to pay off their mortgage early without additional costs.

  • Can a relative give me money for the down payment?
    Yes, FHA lets home buyers use gift money from a family member or approved person, such as employer, for their down payment. The person giving the money must sign a letter confirming it as a gift.

  • How does FHA refinance work?
    Yes, FHA lets home buyers use gift money from a family member or approved person, such as employer, for their down payment. The person giving the money must sign a letter confirming it as a gift.

To Get Pre-Approved for an Ohio FHA loan today, get started by taking less than (1) minute to complete our online form, or call (855) 572-4006, and begin your path to homeownership. We look forward to serving you!

Get Pre-Approved!