Buying your first home in Gahanna can feel overwhelming. You might hear about FHA, VA, USDA, and OHFA, but not know which one fits your situation or the local market. You deserve a clear, simple path that shows what you can afford, what you qualify for, and how to shop confidently in Franklin County. In this guide, you’ll learn how Ohio’s first-time buyer programs work, who may qualify, and how to align a strong pre-approval with your home search. Let’s dive in.
Ohio loan options at a glance
FHA loans
FHA loans are government-insured and popular with first-time buyers. They allow a low minimum down payment for eligible borrowers and use more flexible credit standards than many conventional loans. All FHA loans include mortgage insurance, and county-by-county loan limits apply. Check the current FHA loan limit for Franklin County before you shop.
VA loans
VA loans serve eligible veterans, active-duty service members, and certain surviving spouses. They often offer no required down payment, competitive rates, and no private mortgage insurance. A VA funding fee may apply unless you qualify for an exemption. You will need a Certificate of Eligibility during underwriting.
USDA loans
USDA Rural Development loans can offer 100 percent financing for eligible buyers purchasing in qualifying rural or semi-rural areas. Income limits and property eligibility rules apply. In central Franklin County, many suburban areas, including much of Gahanna, are likely ineligible. Always verify a specific address on the USDA eligibility map before you tour.
Conventional loans
Conventional loans can be attractive if you have a solid credit profile. First-time buyer versions may allow down payments as low as 3 to 5 percent, with private mortgage insurance if you put less than 20 percent down. Many buyers pair a conventional loan with down payment assistance.
OHFA down payment assistance
The Ohio Housing Finance Agency (OHFA) offers mortgage products and down payment or closing-cost assistance through participating lenders. Programs include income and purchase-price limits that vary by county and household size. Some products are for first-time buyers; others have alternative paths to eligibility. Your lender will package the mortgage with the assistance if you qualify.
Who qualifies and key rules in Franklin County
First-time buyer definition
Many programs consider you a first-time buyer if you have not owned a principal residence in the past three years. Some programs do not require first-time status, and others may have special provisions for targeted buyers. Always check the specific program rules.
Income and price limits
State and local assistance programs generally set household income limits and purchase-price caps that differ by county and household size. These change over time. Confirm current OHFA and local limits for Franklin County before applying.
Credit, down payment, and insurance
- FHA: allows lower credit scores for eligible borrowers and a low down payment; requires mortgage insurance.
- VA: typically no down payment and no PMI; a funding fee often applies unless exempt.
- USDA: typically no down payment; uses guarantee fees and has property/income rules.
- Conventional: down payments often start around 3 to 5 percent for first-time buyers; PMI applies under 20 percent down.
Exact thresholds depend on the lender and your full profile. Your lender will review credit, savings, employment, and reserves.
DTI and underwriting
Lenders review your debt-to-income ratio. Conventional loans often aim for a DTI near the low- to mid-40s, while FHA can allow higher DTIs with compensating factors. VA uses a unique residual income test in addition to DTI. Be ready to document your income, assets, and employment.
Property eligibility and local costs
Most programs require a primary residence and owner occupancy. Some property types have extra rules and minimum standards. Factor in local costs that affect your monthly payment, including Franklin County property taxes, HOA fees, homeowner’s insurance, and utilities. Special assessments or floodplain considerations can also impact affordability.
Pre-approval checklist: what to gather
Collect these items before you apply so your pre-approval is accurate and credible:
- Government photo ID and Social Security number (or ITIN where accepted)
- Recent pay stubs for the last 30 days
- W-2s for 2 years and 1099s if applicable
- Federal tax returns for 2 years (especially if self-employed)
- Bank statements for the last 2 months for all accounts
- Statements for other assets like 401(k) or brokerage accounts
- Details on debts: student loans, auto loans, credit cards, child support or alimony
- Gift letter if using gift funds, when allowed
- VA Certificate of Eligibility, if applicable
- Any required education or counseling certificates for assistance programs
Align pre-approval with your Gahanna search
A strong pre-approval should show your estimated loan amount, likely rate range, and the loan product. Ask your lender to factor taxes, HOA fees, and insurance typical for Gahanna and nearby Franklin County suburbs. In a competitive market, a clear pre-approval letter can support a stronger offer. If you plan to use OHFA or another form of down payment assistance, confirm your lender participates and discuss any extra processing time.
Also understand seller contribution limits. Some programs cap how much a seller can contribute toward your closing costs or repairs. Your agent and lender can help you structure your offer within program rules.
Timeline: from lender meeting to closing
- Step 1: Meet with one or more lenders and discuss eligibility for FHA, VA, USDA, OHFA, and conventional options.
- Step 2: Secure a written pre-approval showing your loan type, amount, and conditions, with an expiration date.
- Step 3: Complete any required homebuyer education or counseling if your assistance program requires it.
- Step 4: Work with your agent to target homes that fit your loan product and program rules, including any USDA map checks or price limits.
- Step 5: Once under contract, coordinate with your lender and title to meet program documentation timelines. Assistance programs may add steps and slightly extend closing.
Smart questions to ask your lender
- Which first-time buyer products do you offer for Franklin County, and which fit my profile?
- Do you participate in OHFA and other assistance programs? Which ones?
- What are your credit score, down payment, and DTI requirements for the products you recommend?
- What documentation do you need now for a full pre-approval?
- How long is my pre-approval valid, and can it be upgraded to conditional approval?
- What fees, mortgage insurance, and escrow items are included in my monthly estimate?
- For VA or USDA loans, what steps confirm borrower and property eligibility?
- For assistance programs, will my closing take longer or require extra education?
Local resources and how to verify
Use these authorities for current rules, limits, and maps:
- U.S. Department of Housing and Urban Development for FHA rules, counseling, and county loan limits.
- U.S. Department of Veterans Affairs for VA loan eligibility and the COE process.
- U.S. Department of Agriculture Rural Development for single-family guaranteed loan rules and property eligibility maps.
- Ohio Housing Finance Agency for mortgage products, down payment assistance, and Franklin County income and purchase-price limits.
- Consumer Financial Protection Bureau for mortgage basics and pre-approval guidance.
- Franklin County Auditor and City of Gahanna sites for property tax and local housing information.
- HUD-approved housing counseling agencies in Franklin County for education and one-on-one guidance.
Common pitfalls to avoid
- Relying on a quick pre-qualification instead of a documented pre-approval.
- Assuming last year’s income and purchase-price limits still apply. These change.
- Skipping a property eligibility check for USDA addresses.
- Underestimating the extra time and paperwork needed for assistance programs.
- Overlooking program-specific appraisal, condition, and seller concession rules.
Next steps
- Gather your documents and meet with two to three lenders who offer FHA, VA, USDA, conventional, and OHFA options.
- If you are a veteran, request your VA Certificate of Eligibility early.
- If you want assistance, confirm your lender is an OHFA participant and check current Franklin County limits.
- If considering USDA, verify address eligibility for any target homes.
- Enroll in required homebuyer education if your program needs it.
- Ask for a written pre-approval that states the loan product, amount, and conditions.
Ready to explore homes and match them to the right loan path in Gahanna? Reach out to the local team that makes first purchases smooth, informed, and on-time. Connect with The Agency Real Estate Group to start your plan.
FAQs
Down payment with Ohio first-time buyer programs
- Some programs, like VA and USDA in eligible areas, can allow zero down for qualified borrowers. FHA and many conventional options require a small down payment.
Credit score and Ohio first-time buyer eligibility
- It depends on the loan and lender. FHA and some OHFA-backed products allow lower scores than many conventional loans, but lender requirements vary.
OHFA programs and who can apply
- Certain OHFA products target first-time buyers, while others have alternative paths to eligibility. Always review the specific program rules.
USDA eligibility for homes in Gahanna
- Many suburban addresses near Columbus, including much of Gahanna, are likely not USDA-eligible. Always check a specific address on the USDA map.
Pre-approval timelines for Franklin County buyers
- Pre-approval length varies by lender and is often 60 to 90 days. Assistance programs may have different timing, so confirm expiration dates with your lender.
