What I Tell First-Time Buyers Who Are Stuck on the Down Payment

Most first-time buyers in Central Ohio overestimate how much cash they need upfront, Ohio's down payment assistance programs can cover 3% to 5% of the purchase price, and that single fact changes a lot of conversations.

I had coffee with a couple a few weeks ago who'd basically talked themselves out of buying before we'd even looked at a single listing. They'd done the math, assumed they needed 20% down on whatever they bought, and decided it just wasn't realistic yet. It took about ten minutes to walk through what's actually available before their whole posture in the conversation changed.

This comes up so often that I think it's worth saying plainly: the down payment is usually the biggest mental block for first-time buyers here, and it's also the part most people have outdated information about.

How much do first-time buyers in Central Ohio actually put down?

Less than most people assume, and often less than 20%. On average, first-time homebuyers in Columbus put down about $43,533 in 2025, which sounds like a lot until you realize that's frequently financed through a combination of savings, gift funds, and state assistance programs rather than coming entirely out of pocket.

What is the OHFA down payment assistance program, exactly?

It's a state program through the Ohio Housing Finance Agency that gives qualifying buyers 3% of the purchase price for conventional loans, or 3.5% for FHA, VA, or USDA loans, to use toward a down payment or closing costs. The money comes as a forgivable loan, meaning if you stay in the home, it's fully forgiven after seven years and you never pay it back.

I've had clients use this to go from "we have almost nothing saved" to "we just closed" in a matter of months, simply because they didn't know the program existed.

Who actually qualifies for this kind of help?

Generally, first-time buyers (or anyone who hasn't owned a primary residence in the last three years) who meet income and purchase price limits for their county. Those limits are higher than most people expect, plenty of dual-income households in Central Ohio still qualify. There's also a minimum credit score requirement, typically 640 for conventional loans, and a free homebuyer education course is required as part of the process.

The income limits and exact numbers shift by county and loan type, so this is one area where talking to an OHFA-approved lender directly is worth the half hour. I'm always happy to point clients toward a few I trust.

Is now actually a good time to buy, or should I wait?

That depends more on your personal timeline than the market's mood. Inventory across Central Ohio has been expanding, which means more options and less pressure to rush a decision than buyers faced a couple of years ago. The median sale price reached $350,000 in May, and homes are spending closer to a month on the market on average, not instant, but not glacial either.

If your hesitation is really about the down payment specifically, that's the piece worth solving first, because it's often more solvable than people assume.

What's the first practical step if someone wants to explore this?

Talk to an OHFA-approved lender before you do anything else, before browsing listings, before stressing about your credit score, before assuming you know your number. They'll walk you through income limits, credit requirements, and which combination of programs (down payment assistance, Ohio Heroes, Grants for Grads, and so on) might actually apply to your situation. From there, the house-hunting part gets a lot less stressful, because you're working from real numbers instead of guesses.

FAQ

Do I need 20% down to buy a home in Ohio? No. Many first-time buyers use much smaller down payments, often combined with state assistance programs that cover 3% to 5% of the purchase price toward down payment or closing costs.

What is OHFA down payment assistance? It's a forgivable loan from the Ohio Housing Finance Agency covering 3% (conventional) or 3.5% (FHA, VA, USDA) of a home's purchase price, fully forgiven after seven years if the buyer stays in the home.

What credit score do I need for OHFA assistance? Typically a minimum of 640 for conventional, USDA, and VA loans with down payment assistance, though specific requirements can vary slightly by program.

Do I have to be a first-time buyer to get help with a down payment in Ohio? For most OHFA programs, yes, though "first-time" generally means you haven't owned a primary residence in the past three years, so plenty of past owners still qualify.

How do I find out if I qualify for Ohio's down payment programs? Start by talking to an OHFA-approved lender, who can check your income against your county's limits and walk you through which specific programs apply to your situation.

This content is provided for informational purposes only and does not constitute legal or financial advice. All real estate services are provided in compliance with Fair Housing laws, RESPA, TCPA, the REALTOR® Code of Ethics, and Ohio Real Estate Commission advertising regulations. Equal Housing Opportunity. Chrisi Hagan, Collins Lassiter Group, Red 1 Realty.