Mortgage Rates in Ohio
Compare today's average mortgage rates in the state of Ohio. Bankrate aggregates mortgage rates from multiple sources to provide averages for Ohio.
Ohio mortgage overview
Homes in the Buckeye State are relatively affordable, a fact that has drawn attention from homebuyers around the country in recent years. The average home price in Ohio was $200,887 in April 2020, which represented an increase of 5.6 percent compared to a year earlier, according to Ohio Realtors.
First-time homebuyer programs in Ohio
The Ohio Housing Finance Agency (OHFA) has a variety of loan options to assist low- and moderate-income homebuyers, including first-time homebuyers and repeat buyers. OHFA does not lend funds directly to homeowners, but works with approved lenders, credit unions and mortgage companies to offer competitive rates on 30-year fixed-rate mortgages.
To qualify, you’ll need to meet credit score requirements, debt-to-income ratios and income and purchase price limits. You generally need a credit score of 640 or higher for a conventional, USDA or VA loan. FHA loans require a score of 650 or higher. Income and purchase price limits vary by county.
You can apply for one or more of the following programs:
OHFA Your Choice! Down Payment Assistance: If you need help with a down payment or closing costs, you can apply for OHFA assistance in the amount of either 2.5 percent or 5 percent of the home’s purchase price. The amount can be used toward a down payment, closing costs or other expenses.
The amount can often be forgiven after seven years, but it will need to be repaid if you sell or refinance the home during that period.
OHFA Ohio Heroes: This program provides discounted mortgage rates to Ohioans who work in certain careers that serve the public good. These careers include:
- Veterans and active-duty military members
- Police officers, firefighters and paramedics
- Physicians, nurse practitioners and nurses
- Teachers and school administrators
This program can be combined with down payment assistance.
OHFA Grants for Grads: If you’re a recent college or university graduate, OHFA will help you buy a home in Ohio. The Grants for Grads program provides a discounted mortgage interest rate combined with down payment assistance of 2.5 percent or 5 percent of the purchase price. The down payment assistance can be forgiven after five years, but must be repaid if you sell your home and move out of Ohio within that period.
To be eligible, you must have graduated within the last 48 months from an accredited college or university with an eligible degree.
OHFA Mortgage Tax Credit: Homebuyers can also receive a federal tax credit on a portion of their mortgage interest through the OHFA’s Mortgage Tax Credit program. The amount is determined by factors like the home’s location and the type of mortgage.
This credit is in addition to the IRS mortgage interest deduction. The Ohio credit cannot exceed the homeowner’s federal income tax bill, after deductions, exemptions and other credits. There are two programs: Mortgage Tax Credit Plus, a tax credit of 40 percent of mortgage interest up to a maximum of $2,000 per year; and Mortgage Tax Credit Basic, a tax credit of 30 percent for a bank-owned property, 25 percent for a property in a target area and 20 percent for other properties.
Ohio mortgage refinancing
OHFA does not currently offer a government-backed refinancing program. A previous program for foreclosure prevention assistance, Save the Dream Ohio, stopped taking applications in October 2019.
Use Bankrate’s mortgage refinance calculator to see how much you can save by lowering your rate.