Buying an Ohio Home With No Money Down: The Honest Guide to Stacking OHFA Assistance With a Zero-Down Loan

A first-time homebuying couple celebrates with keys during a warm, joyful move-in moment

October 12, 2026

Here’s the honest version: no down payment does not mean no money at all. A zero-down mortgage can remove the down payment, and Ohio Housing Finance Agency (OHFA) assistance may help with eligible closing costs and prepaid expenses. But buyers should still plan for possible earnest money, inspections, moving costs, and other expenses.

The good news? With the right combination, eligible Ohio buyers may be able to purchase a home with far less cash than they expect. Let’s break down how the pieces can fit, without pretending every expense magically disappears.

The two building blocks

1. A loan with no down payment, or a small one

Some mortgage programs may allow qualified buyers to purchase with no down payment:

  • VA loans may offer eligible veterans, active-duty service members, and some surviving spouses 0% down. A one-time VA funding fee may apply, though it can often be financed. Some borrowers with qualifying service-connected disabilities are exempt.
  • USDA loans may offer eligible buyers 0% down when the home is in an eligible area and the household meets income limits. USDA loans generally have an upfront guarantee fee, which may be financed, and an annual fee typically paid monthly.
  • Conventional and FHA loans usually require a down payment, often starting around 3% for some conventional options and 3.5% for FHA. Assistance may help cover eligible down payment and closing costs, subject to program rules.

A zero-down loan doesn’t mean “zero fees.” It means the down payment requirement may be zero. There’s a difference, and it matters when you plan your budget.

Learn more about USDA loan options.

2. OHFA down payment assistance

OHFA offers down payment assistance equal to 3% of the purchase price with a conventional loan or 3.5% with a government-backed FHA, VA, or USDA loan. Depending on program rules and your transaction, it may be used toward the down payment, closing costs, prepaid items, and other eligible expenses.

The assistance is structured as a second mortgage and is generally forgiven after seven years if you meet the program’s occupancy and other requirements. There is typically no monthly payment, and interest generally does not accrue, but confirm the terms that apply to your loan. If you sell before the seven-year forgiveness period is complete, repayment may be required.

See OHFA’s current down payment assistance details and income and purchase-price limits.

A buyer and loan advisor review paperwork and a calculator in a bright, welcoming setting

What the stack could look like

Imagine you’re buying a $275,000 home in Ohio and qualify for a VA or USDA first mortgage with 0% down.

  • First mortgage down payment: $0
  • OHFA assistance at 3.5%: about $9,625
  • Potential use: eligible closing costs, prepaids, and other permitted expenses

That assistance can make a meaningful difference, but it isn’t a cash bonus to spend freely. It must be applied according to program and loan rules, and total assistance cannot exceed allowable costs and applicable limits.

You may still need money for an earnest-money deposit, a home inspection, an appraisal if it is not covered or credited, moving expenses, and costs that cannot be paid with assistance. Earnest money may be credited toward your closing costs at closing, but you generally need to pay it earlier. So “no money down” is best understood as far less cash than you might think, not necessarily no cash at all.

Who may qualify for OHFA?

Eligibility depends on the specific OHFA program and loan, but common requirements include:

  • First-time buyer status: Generally, you must not have had an ownership interest in a primary residence during the previous three years. OHFA has exceptions for honorably discharged veterans and buyers purchasing in a designated target area.
  • A possible repeat-buyer option: OHFA’s Next Home program may serve qualifying buyers who aren’t first-time buyers.
  • Income and purchase-price limits: These vary by county, household size, program, and whether the home is in a target area. As of July 1, 2026, many Ohio counties have a non-target income limit of about $98,800 for households of one or two, while limits can reach $146,700, including in Union County. Limits for households of three or more are higher. Check the current county-specific rules before you shop.
  • Credit requirements: OHFA generally lists minimum scores around 640 for conventional, VA, and USDA loans and 650 for FHA loans, along with other underwriting requirements.
  • Homebuyer education: Education through an eligible HUD-approved counseling agency is usually part of the process.

These are starting points, not an approval checklist you can complete with a highlighter and a hopeful smile. The applicable guidelines depend on the exact loan and borrower.

A possible Columbus-area layer

Some buyers purchasing within the City of Columbus may also want to ask about the city’s American Dream Downpayment Initiative (ADDI). The program may provide assistance of up to 6% of the purchase price, capped near $14,999, for qualifying buyers.

ADDI has its own first-time-buyer, income, location, occupancy, and homebuyer-education requirements. The property must be within Columbus city limits, not just somewhere in the broader area, and buyers must contribute at least $500 of their own funds under the city’s program rules. The assistance is generally a deferred loan that may be forgiven after five years of owner-occupancy; selling, renting, or moving out earlier can trigger repayment.

It may be possible to coordinate local assistance with OHFA, but don’t assume that the programs can automatically be stacked. A loan officer and the program administrators need to confirm that the combination is permitted and that the total stays within eligible down payment and closing costs. Start with the City of Columbus ADDI program information.

A family carries a moving box into their new home, sharing a happy first-day moment

Timing matters: get pre-approved before you house-hunt

Before you make offers, get pre-approved so your loan officer can review your income, credit, savings, intended purchase area, and eligibility. That’s when you can compare the options and see whether a zero-down loan, OHFA assistance, or a local program actually fits your situation.

This is also the time to ask about program limits, required education, what expenses assistance can cover, and how much cash you may still need. Planning early helps avoid the stressful version of homebuying where everyone discovers a rule on the same day the movers arrive.

People often search for “low mortgage rates quick closing,” but assistance programs don’t guarantee a particular rate or closing timeline. Mortgage rates vary, and extra eligibility steps and documentation can affect timing. Your loan officer and real estate agent can coordinate the steps and set realistic expectations.

Is it better to wait and save 20%?

There’s no one-size-fits-all answer. Freddie Mac’s national average for a 30-year fixed-rate mortgage was 7.40% for the week ending October 8, 2026. That is a national benchmark, not a quote for your loan. Freddie Mac’s rate archive provides the weekly figures.

Saving a 20% down payment can reduce the amount you borrow and may avoid mortgage insurance on some loans. But waiting another year can also mean paying rent longer, delaying the chance to build equity, or facing a different home price or interest rate. Those costs can outweigh the benefit of waiting for some buyers, and not for others. Compare the full monthly payment, estimated closing costs, likely time in the home, and your savings cushion before deciding.

Homeownership can offer stability and the opportunity to build equity over time. It’s not a guaranteed investment or a get-rich-quick plan; homes need maintenance, and values can rise or fall. The goal is a sustainable purchase that fits your life and finances.

Homebuyers talk through options with a housing counselor in a sunny Columbus neighborhood

First-time home buyer questions? Start with a conversation

If you’re wondering why use a mortgage broker or weighing mortgage broker vs bank, begin with the practical question: which loan and assistance combination fits your goals and eligibility? Affinity Group Mortgage is an expert at finding the right loan for you, with personalized guidance through the options and the paperwork.

Our Learning Center and mortgage insights have more resources for buyers exploring down payment assistance Ohio and more mortgage programs. You can also contact our team to discuss your next steps.

No money down may be realistic for some Ohio buyers. The smart move is to confirm the full picture, including the cash you may still need, before you fall in love with the kitchen.

Have questions about your situation? Call your Affinity Group Mortgage loan officer and we will walk through it with you.
Contact your Affinity Group Mortgage Loan officer today.