Rates Hit 7.40%. Ohio Programs That Can Help First-Time Buyers Get In

Rates Hit 7.40%. Ohio Programs That Can Help First-Time Buyers Get In

Mortgage rates rose for the seventh straight week. Freddie Mac's survey put the average 30-year fixed rate at 7.40% on October 8, 2026, up from 7.28% the week before and 6.30% a year ago. For first-time buyers, that makes every dollar of help more valuable.


One resource many Central Ohio buyers overlook is the Ohio Housing Finance Agency, or OHFA. Its programs are offered through approved local lenders and can help with both the down payment and the rate.



OHFA Down Payment Assistance


  • Assistance equal to 3% of the purchase price on a conventional loan, or 3.5% on an FHA, VA, or USDA loan.
  • It can be used toward the down payment, closing costs, or other pre-closing expenses.
  • It is forgiven after seven years. If you sell within those seven years, the full amount must be repaid.
  • Minimum credit scores are 640 for conventional, VA, and USDA loans, and 650 for FHA.


Here is what that looks like in practice. On a $300,000 home with an FHA loan, 3.5% assistance equals $10,500, which covers the full FHA minimum down payment.



Programs for Specific Buyers


  • Grants for Grads: For buyers who earned a qualifying degree within the last 18 months. It offers a discounted interest rate plus 3% or 3.5% down payment assistance, forgiven after five years as long as you stay in Ohio.
  • Ohio Heroes: A discounted interest rate for veterans and active military, police officers, firefighters, EMTs and paramedics, physicians, nurse practitioners, nurses, STNAs, and pre-K through 12 teachers, administrators, and counselors. Down payment assistance can be added.



Who Qualifies


  • Generally, you have not owned your primary residence in the last three years. Honorably discharged veterans and buyers purchasing in designated target areas can qualify without meeting that requirement.
  • Your household income and the purchase price must fall under OHFA's limits, which vary by county and household size.
  • You complete a free homebuyer education course through a HUD-approved counseling agency.
  • You meet your loan type's debt-to-income requirements.



Questions to Ask Before You Commit


  • How does the rate compare? Assistance programs sometimes carry a slightly different rate than a standard loan. Compare the total monthly payment both ways.
  • How long will you stay? Because the standard assistance is repaid in full if you sell within seven years, it fits best if you expect to stay put.
  • Is your lender OHFA-approved? Not every lender offers these programs, so ask early.



Bottom Line


At 7.40%, getting into a first home is harder, but OHFA programs can cover your entire FHA down payment and, for graduates and public-service workers, lower your rate. If you plan to stay in your home for several years, they are worth exploring before you assume you need to wait.



Margaret Lipp | REMAX Premier Choice

Serving Upper Arlington, Dublin, Worthington, Clintonville, Hilliard, Powell, Grandview, and all Central Ohio communities



Program information source: Ohio Housing Finance Agency (myohiohome.org), accessed October 2026. Program terms, limits, and availability can change; confirm current details with OHFA or an OHFA-approved lender. Mortgage rate data: Freddie Mac Primary Mortgage Market Survey, week of October 8, 2026. Payment examples show principal and interest only and are illustrative, not a loan quote; property taxes, insurance, and mortgage insurance are additional. Consult a licensed lender for rates and terms.

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Margaret Lipp.

REALTOR® LIC#2014004838

margaretlipp312@gmail.com

614-537-2992

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