If you are thinking about buying your first home in Columbus, Dayton, or anywhere in Ohio, one of the first questions you probably have is: how much money do I actually need? The good news is that it is often less than people expect. Many first-time buyers do not need 20% down. Here is a plain-language breakdown of the costs to plan for.
The Three Main Costs to Plan For
Down payment: the portion of the purchase price you pay upfront.
Closing costs: lender, title, and other fees paid when you close.
Cash reserves and move-in costs: inspections, moving, and a cushion for surprises.
How Much Is the Down Payment?
Your down payment depends on the type of loan you use. Common options for first-time buyers include:
Conventional loans: some programs allow as little as 3% down for qualified first-time buyers.
FHA loans: can allow 3.5% down with a credit score of 580 or higher.
VA loans: often no down payment for eligible veterans and service members.
USDA loans: can require no down payment for eligible buyers in qualifying areas.
For example, on a $250,000 home, 3% down is $7,500, 3.5% down is $8,750, and 20% down is $50,000. Putting less than 20% down on a conventional loan usually means paying mortgage insurance, which can often be removed later as you build equity.
Closing Costs: The Part Many Buyers Forget
Closing costs often run a few percent of the loan amount. They can include lender fees, the appraisal, title insurance, recording fees, and prepaid property taxes and homeowners insurance. A few ways buyers reduce what they bring to closing:
Negotiating for the seller to contribute toward closing costs
Lender credits in exchange for a slightly higher interest rate
Down payment and closing cost assistance programs
Down Payment Assistance in Ohio
Ohio buyers may have access to assistance through the Ohio Housing Finance Agency (OHFA) and some local city or county programs. These programs have their own eligibility rules, such as income limits and homebuyer education requirements, and they change over time. A lender who works with first-time buyers can tell you which ones fit your situation.
Other Costs Before You Close
Earnest money: a good-faith deposit when your offer is accepted. It is applied toward your purchase at closing.
Home inspection: paid before closing to check the home's condition. It is one of the best investments you will make.
Appraisal: usually required by your lender and sometimes paid upfront.
Budget for Life After You Move In
Try not to drain every dollar of savings to buy the house. Plan for moving costs, utility deposits, basic tools and furniture, and an emergency fund for repairs like a water heater or furnace that decides to retire early.
Your Next Steps
Check your credit score and pay down high-interest debt if you can.
Talk with a lender about pre-approval and the loan programs you qualify for.
Use my free first-time buyer affordability calculator to see a comfortable price range.
Book a free consultation so we can map out a plan together.
Buying your first home is a big step, and you do not have to figure it out alone. I am happy to answer every question, as many times as you need. Book a free first-time buyer consultation or call me at 937-729-8632.
This article is general information, not financial or lending advice. Loan program rules change, so always confirm details with a licensed lender.