Ohio mortgages: monthly costs, property taxes and OHFA help

#Ohio’s price-to-income edge

Even so, today’s rates stretch a typical budget. On the median income of $72,212, Freddie Mac’s 30% housing guideline leaves $1,805 a month, which supports about $225,000 with 10% down at Ohio’s tax ratio — $14,800 below the median value. The gap is small enough that a modest price cut, a larger down payment or a rate discount can close it; the affordability calculator shows where your own income lands.

#Property taxes do more of the work

Ohio’s effective property tax rate of 1.22% is the 12th-highest among the states and DC; the median owner pays $2,937 a year. On the median-value home that is $244 a month, $66 more than at the national ratio. School district levies approved by local voters are a big reason bills differ from one district to the next, so look up the exact parcel on the county auditor’s site.

Owners who are 65 or older, or permanently and totally disabled, can claim the homestead exemption, which takes $25,000 of market value off the taxable value — an amount the state adjusts for inflation each year — subject to an income test for newer applicants. Qualifying disabled veterans get a larger exemption. At the state’s effective rate, the base amount is worth roughly $305 a year. Apply with your county auditor.

#Cash to close with OHFA assistance

OHFA’s help is calculated on the purchase price: 3% with a conventional loan or 3.5% with FHA, VA or USDA. Here is the median home with a 10% down payment next to the 3% minimum conventional down payment, funded by OHFA’s 3%.

With an FHA loan the 3.5% option would be $8,393, enough to cover the 3.5% FHA minimum down payment. Try the low-down-payment version in the mortgage payment calculator.

#OHFA programs: assistance, Ohio Heroes and the tax credit

The Ohio Housing Finance Agency works through participating lenders across the state:

• Down payment assistance — 3% (conventional) or 3.5% (government loans) of the price, usable for the down payment or closing costs. It is forgiven after 7 years; sell before then and you repay all of it.
• Ohio Heroes — a discounted mortgage rate for people in public service, including first responders, some medical professionals and educators. It can be combined with the assistance.
• Mortgage Tax Credit — eligible first-time buyers get back part of their mortgage interest as a federal tax credit each year; see mortgage credit certificates.

Borrowers need a credit score of at least 640 for conventional, USDA and VA loans (slightly higher for FHA), must meet county income and price limits and must finish OHFA’s free homebuyer education.

#Conveyance fees: the county decides

Every Ohio county charges a conveyance fee of at least 0.1% of the price when the deed is recorded, and counties may add up to 0.3% more under state law. The tax is levied on the grantor, so in Ohio the seller pays. On the median-value home, that is between $240 and about $959, depending on the county.

Buyers’ costs are the lender, title, recording and prepaid items covered by the CFPB range above. The closing cost estimator itemizes them.

#Columbus and the rest of Ohio

Prices vary a lot within the state. In the City of Columbus, the median home is valued at $279,900, above the statewide median, and most Columbus households rent (45.9% own). Statewide, the median house was built in 1971, the 8th-oldest housing stock among the states and DC, so leave room for inspection findings and repairs. See the Columbus guide for city assistance, Franklin County’s fee and local costs.