fha-loans-pros-cons FHA loans Ohio

FHA Loans in Ohio: How To Qualify

FHA Loans Ohio Summary

  • FHA mortgages provide flexible eligibility requirements.
  • The maximum loan amount varies by county. See the limit in your county below.
  • Learn how to apply for an FHA Loan in Ohio. List of lenders below.

Are you looking for an affordable way to buy a home in Ohio? One of the most popular loan options is offered through the U.S. Department of Housing’s Federal Housing Administration (FHA) program. FHA loans have low down payments, flexible eligibility requirements, and affordable closing costs, so it’s no wonder they account for about one-fifth of U.S. mortgages.

How to qualify for an FHA loan in Ohio

Meeting FHA loan requirements in Ohio is similar to qualifying in any other state. You will have to meet the eligibility requirements laid out by HUD in their lengthy handbook. However, FHA loans are known for their flexibility. They are popular with first-time homebuyers, but you can get an FHA loan even if it’s not your first home– as long as it’s going to be your primary residence. Aside from that, here’s a quick list of the main eligibility requirements:

FHA eligibility requirements in Ohio:

  • Age: You must be of legal age in Ohio to carry a mortgage note (at least 18 years old).
  • Credit: You must have a credit score of at least 500.
  • Down payment: You need to be able to put down the required down payment, whether it is 3.5% (for credit scores of 580 or higher) or 10% (for credit scores of 500 to 579).
  • Employment: You need to be able to prove two years of stable employment.
  • Bankruptcies: You can’t have a bankruptcy on your record that occurred within the past two years.
  • Foreclosures: You can’t have any foreclosures in the past three years.
  • Debt: You need to be able to afford your current debt, regular living expenses, and the mortgage. This equates to a debt-to-income ratio under 50%. You also can’t have federal tax debt.
  • Property: The property must meet the minimum requirements outlined by the FHA (pass an inspection, be your primary residence, and be in your name or the name of a living trust).
  • Loan amount: The property can’t exceed FHA loan limits.

These are the core eligibility requirements set by the FHA on a national level. However, that doesn’t mean that the lenders you find in Ohio will have the same requirements. While these are the minimums, lenders can set additional requirements. Shop around and check each lender’s requirements carefully.

Maximum FHA loan amounts in Ohio

The next question you might be asking is, how much can you borrow with an FHA loan in Ohio? Each year the FHA sets new limits, which can vary depending onFHA loans Ohio where you live and what type of home you are buying.

Let’s take a look at the 2020 FHA loan limits nationwide.

FHA basic standard mortgage limits for 2020

  • One-family: $331,760.00
  • Two-family:$424,800.00
  • Three-family: $513,450.00
  • Four-family: $638,100.00

FHA high-cost areas limits for 2020

  • One-family: $765,600.00
  • Two-family:$$980,325.00
  • Three-family: $1,184,925.00
  • Four-family: $1,472,550.00

While these are the overall limits for the U.S., they vary depending on where you live. The table below shows the limits by county in Ohio.

Ohio FHA mortgage limit list by county 2020

County NameStateOne-FamilyTwo-FamilyThree-FamilyFour-Family
ADAMSOH$331,760$424,800$513,450$638,100
ALLENOH$331,760$424,800$513,450$638,100
ASHLANDOH$331,760$424,800$513,450$638,100
ASHTABULAOH$331,760$424,800$513,450$638,100
ATHENSOH$331,760$424,800$513,450$638,100
AUGLAIZEOH$331,760$424,800$513,450$638,100
BELMONTOH$331,760$424,800$513,450$638,100
BROWNOH$331,760$424,800$513,450$638,100
BUTLEROH$331,760$424,800$513,450$638,100
CARROLLOH$331,760$424,800$513,450$638,100
CHAMPAIGNOH$331,760$424,800$513,450$638,100
CLARKOH$331,760$424,800$513,450$638,100
CLERMONTOH$331,760$424,800$513,450$638,100
CLINTONOH$331,760$424,800$513,450$638,100
COLUMBIANAOH$331,760$424,800$513,450$638,100
COSHOCTONOH$331,760$424,800$513,450$638,100
CRAWFORDOH$331,760$424,800$513,450$638,100
CUYAHOGAOH$331,760$424,800$513,450$638,100
DARKEOH$331,760$424,800$513,450$638,100
DEFIANCEOH$331,760$424,800$513,450$638,100
DELAWAREOH$373,750$478,450$578,350$718,750
ERIEOH$331,760$424,800$513,450$638,100
FAIRFIELDOH$373,750$478,450$578,350$718,750
FAYETTEOH$331,760$424,800$513,450$638,100
FRANKLINOH$373,750$478,450$578,350$718,750
FULTONOH$331,760$424,800$513,450$638,100
GALLIAOH$331,760$424,800$513,450$638,100
GEAUGAOH$331,760$424,800$513,450$638,100
GREENEOH$331,760$424,800$513,450$638,100
GUERNSEYOH$331,760$424,800$513,450$638,100
HAMILTONOH$331,760$424,800$513,450$638,100
HANCOCKOH$331,760$424,800$513,450$638,100
HARDINOH$331,760$424,800$513,450$638,100
HARRISONOH$331,760$424,800$513,450$638,100
HENRYOH$331,760$424,800$513,450$638,100
HIGHLANDOH$331,760$424,800$513,450$638,100
HOCKINGOH$373,750$478,450$578,350$718,750
HOLMESOH$331,760$424,800$513,450$638,100
HURONOH$331,760$424,800$513,450$638,100
JACKSONOH$331,760$424,800$513,450$638,100
JEFFERSONOH$331,760$424,800$513,450$638,100
KNOXOH$331,760$424,800$513,450$638,100
LAKEOH$331,760$424,800$513,450$638,100
LAWRENCEOH$331,760$424,800$513,450$638,100
LICKINGOH$373,750$478,450$578,350$718,750
LOGANOH$331,760$424,800$513,450$638,100
LORAINOH$331,760$424,800$513,450$638,100
LUCASOH$331,760$424,800$513,450$638,100
MADISONOH$373,750$478,450$578,350$718,750
MAHONINGOH$331,760$424,800$513,450$638,100

You can check out the latest limits for any U.S. county using the FHA Mortgage Limits tool. 

FAQs about FHA in Ohio

What are the drawbacks of getting an FHA loan in Ohio?

While FHA loans offer many benefits, there are a few drawbacks you should know. For one, they require private mortgage insurance (MIP). You will have to make a lump-sum payment of 1.75% of your loan amount, as well as each month for the remainder of the loan. This is the insurance cost of putting down less than 20% on the loan. The other main drawback is that you are limited in the loan amount and home you can purchase. While this won’t impact all homebuyers, it will if you are looking to buy a house on the more expensive side.

How does FHA refinance work?

An FHA refinance is a mortgage that is backed by FHA mortgage insurance and is used to pay off an existing FHA-insured mortgage. Private lenders provide the mortgage, but the FHA takes some of the risk. That means they can offer lower rates and relax eligibility requirements. People with credit scores as low as 580 and a downpayment of just 3.5% can qualify.

Can I get an FHA loan in Ohio with bad credit?

FHA loans are available to those who are considered to have “Poor” credit. You can qualify with a credit score as low as 500, according to the FHA guidelines. However, it may be more challenging to find a lender that will approve you with that score.

What should you look for in an FHA lender?

When shopping around for an FHA lender, you will first want to ensure they are FHA-approved. You can quickly find out using the HUD lender search tool below. Beyond that, look for competitive rates, low fees, and positive reviews from past homebuyers.

How to apply for an FHA loan in Ohio

Find FHA-approved lender that serves Ohio

To apply for an FHA loan in Ohio, you will need to find a lender that is approved by the FHA. The lenders in the table below all work with FHA loans. Check which lender is the best match for you.

You can also use the HUD Lender List Search, which allows you to search for a lender using a variety of criteria including lender name, location, FHA insurance type, and more.

HUD Lender list search

After submitting your search request, you’ll receive a list of lenders that match your criteria.

Lender List Search Results

Vet potential FHA lenders

From there, you can begin researching potential lenders to find the right fit for you. SuperMoney provides a helpful mortgage lender review page where you can compare leading lenders side-by-side, including those that offer FHA loans in Ohio. Read reviews from other homebuyers to help you find a reputable company.

Get pre-qualified

Once you find a lender that looks good, contact it to share that you are interested in an FHA loan. A representative will guide you through the application process. The first best step you can take is getting pre-qualified. This will require submitting all of the documents to prove your income and employment. Then, the lender will determine if you pre-qualify as well as the loan amount and interest rate available to you.

Tip: You can get pre-qualified with more than one lender to compare offers and pick the best deal.

Find the best Ohio FHA lender for you needs

Ready to get the ball moving and buy the Ohio home of your dreams? An FHA loan can help you do so. Start by reviewing your situation to see if you meet the minimum eligibility requirements. If you do, then it’s time to find an FHA-approved lender that will offer you a competitive deal. Remember, rates will vary from one lender to the next, despite the government guarantee, so it can pay to shop around. To start the process, check out the lineup of leading mortgage lenders below.