Updated: July 2026 | Source: MyOhioHome.org (OHFA) · FHFA · HUD · Freddie Mac PMMS

Ohio Home Loans 2026 — Complete Guide

From 3.5% down FHA to 3.5% state-funded down payment assistance — here is what home buyers in Ohio can access in 2026.

Ohio remains one of the more affordable states to buy in, and a wave of property tax reform is reshaping bills starting this year. This guide covers loan limits, current rates, the new property tax rules, and the OHFA down payment assistance programs available to general buyers this year.

$274,027

OH median home price (May 2026)

6.55%

Avg. 30-yr conventional rate

Up to 3.5%

OHFA Your Choice! down payment help

$541K–$591K

2026 FHA limits by county

The number people miss: Ohio enacted a wave of property tax reform in early 2026 — five companion bills that reshape how levies, reappraisals, and credits work. Homeowners should see the changes reflected as a new credit on their June 2026 tax payments. If you are budgeting off an old tax bill or an outdated online estimate, the number may already be wrong.

Ohio Down Payment Assistance — OHFA Your Choice!

The Ohio Housing Finance Agency (OHFA) offers Your Choice! Down Payment Assistance alongside an OHFA first mortgage. The program's structure changed in 2025, so double-check any older guide you find online.

OHFA Your Choice! Down Payment Assistance

Conventional loans3% of purchase price

Government loans (FHA / VA / USDA)3.5% of purchase price

Interest rate0% — no monthly payment

ForgivenessFully forgiven after 7 years

Correction worth knowing: Many online guides still describe Your Choice! as a "2.5% or 5%" flat choice. Effective July 1, 2025, OHFA changed the structure to 3% for conventional loans and 3.5% for government loans — it is no longer a free choice between the two percentages. Confirm the current structure with an OHFA-approved lender before planning around outdated figures.

The 7-year rule is all-or-nothing: Unlike some states that forgive a prorated share of down payment assistance each year, Ohio's Your Choice! program forgives the entire amount only after the full 7 years. Sell or refinance in year 6, and you owe back the full assistance amount — not 6/7ths of it.

Recent Ohio graduate? OHFA's Grants for Grads offers the same assistance structure with added benefits for buyers who completed an associate, bachelor's, or graduate degree within the last four years and are purchasing in Ohio.

Income Limits

Income limits vary by county and household size. As examples for a 3+ person household: Franklin County (Columbus) runs up to roughly $117,600, Cuyahoga County (Cleveland) up to roughly $120,000, and Hamilton County (Cincinnati) up to roughly $115,200.

These figures are illustrative and change with area median income updates. Confirm your exact county limit at MyOhioHome.org before applying.

Current Rates

Product	Rate	Source
30-yr Conventional	6.55%	Freddie Mac PMMS, week of July 16, 2026
15-yr Fixed	5.93%	Freddie Mac PMMS, week of July 16, 2026
OHFA first mortgage	Below market	Typically 0.25–0.75% under standard rates — confirm current pricing with an OHFA-approved lender

2026 Loan Limits by County

Eight counties around Columbus — Delaware, Franklin, Hocking, Licking, Madison, Morrow, Pickaway, and Union — qualify for a higher FHA limit. The conforming (conventional) limit stays flat statewide, similar to Pennsylvania's Philadelphia-metro pattern.

Loan Type	Standard Counties	Columbus-Area 8 Counties
FHA	$541,287	$591,100
Conventional (Conforming)	$832,750 statewide — flat, no high-cost counties
VA	No county limit for buyers with full entitlement

Verify your exact county's FHA limit at HUD.gov — the higher tier applies to a specific list of Columbus-area counties, not the whole state.

Property Tax in Ohio — What Changed in 2026

What Buyers Should Budget For

Statewide average effective rate~1.3%–1.6%

Assessment ratio35% of true value is taxed, not full market value

Standard Homestead Exemption (65+/disabled, 2026)$28,000 off market value

Enhanced Exemption (disabled veterans, KIA spouses)$56,000 off market value, no income test

Ohio only taxes 35% of your home's appraised value, so a $300,000 home is taxed as if it were worth $105,000 before your local millage rate is applied — a mechanic that surprises many out-of-state buyers. Ohio enacted five companion property tax reform bills that took effect in March 2026, responding to years of frustration over sharp valuation jumps during countywide reappraisals. The changes touch levy calculations, reappraisal procedures, and homeowner credits, with the new credits scheduled to appear on tax bills starting in June 2026. The Homestead Exemption remains available for owners 65 and older or permanently disabled with income under roughly $41,000 (2026), shielding $28,000 of market value, with a larger $56,000 exemption and no income test for disabled veterans and surviving spouses of public safety officers killed in the line of duty.

Pick Your Loan Type

FHA3.5% down, flexible credit ConventionalSkip MIP with 20% down USDA$0 down in eligible areas VA$0 down for veterans

Try the Loan Calculator Compare FHA, Conventional, USDA & VA with Ohio prices and current rates

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Are you a teacher, nurse, firefighter, police officer, EMT, or veteran? Ohio runs Ohio Heroes, an additional program with a discounted rate on top of the general OHFA options covered here. Browse the Hero Home Loan Programs hub and select Ohio for profession-specific stacking strategies.

Frequently Asked Questions

Is OHFA's Your Choice! still 2.5% or 5%?

No. As of July 1, 2025, OHFA changed the program to 3% for conventional loans and 3.5% for government loans (FHA, VA, USDA). Older articles describing a 2.5%/5% choice are outdated — confirm current terms with an OHFA-approved lender.

What happens if I sell my Ohio home in year 5 of the 7-year forgiveness period?

You owe back the entire down payment assistance amount, not a prorated share. Ohio's forgiveness is all-or-nothing at the 7-year mark, unlike states such as Pennsylvania that forgive a percentage each year.

What is the new Ohio property tax credit I keep hearing about?

Ohio passed five property tax reform bills that took effect in March 2026, addressing levy calculations, reappraisal procedures, and new homeowner credits. Ohio residents should see the changes reflected as a specific credit starting with June 2026 tax payments — check with your county auditor for exact figures.

Why does my Ohio tax bill seem lower than my home's actual value would suggest?

Ohio applies its local millage rate to only 35% of your home's appraised value, not the full market value. This assessment ratio is built into how Ohio calculates property tax and is separate from any additional exemptions you may qualify for.

Bottom Line: Ohio remains genuinely affordable to buy in relative to national prices, and OHFA's Your Choice! program covers a meaningful share of the down payment on either a conventional or government loan. Just make sure you are working from the current 3%/3.5% structure and the 2026 property tax rules rather than outdated information, since both changed recently.

Disclaimer: This post is for informational purposes only and does not constitute financial, legal, or mortgage advice. Program terms, rates, income limits, and availability change frequently — verify all details directly with official program sources before making any financial decisions. StatewiseFinance is not affiliated with any government agency or lender listed in this post.