Understanding your loan options is key to a smooth home purchase. Given your good credit, income, and status as first-time buyers, here are the paths most likely to fit, along with what to watch out for.

1 Conventional Loan (5-10% Down) Top match 90/100 fit

With your good credit and solid income, a conventional loan is likely your most straightforward path. You could qualify for competitive interest rates and put down as little as 5% or 10% on a single-family home, offering flexibility while you build equity. Confirm with a lender how much cash you'll need for the down payment plus closing costs.

What listing sites won't tell you:

You will likely pay Private Mortgage Insurance (PMI) until you reach 20% equity in the home.
While property condition standards are generally more flexible than FHA, the home must still meet basic lender requirements for safety and livability.
Closing costs, typically 2-5% of the loan amount, will be a separate cash outlay on top of your down payment.

2 FHA Loan (3.5% Down) 75/100 fit

If your cash for the down payment and closing costs is a bit tighter than a conventional loan demands, an FHA loan offers a low 3.5% down payment. It's designed for first-time buyers and those with more varied credit, but your good credit will still position you well for favorable terms.

What listing sites won't tell you:

You will pay both an upfront and an annual Mortgage Insurance Premium (MIP), which stays for the life of the loan unless you refinance out of it.
FHA loans have stricter property condition standards, which can sometimes limit your eligible home choices if properties need significant repairs.
While offering a lower down payment, your total monthly housing costs may be higher due to the ongoing MIP.

3 State or Local First-Time Buyer Assistance 65/100 fit

As first-time buyers in Columbus, you should explore state and local programs, such as those offered by the Ohio Housing Finance Agency (OHFA). These programs can provide down payment or closing cost assistance, often paired with a conventional or FHA loan, making homeownership more accessible.

What listing sites won't tell you:

These programs typically have income limits and sometimes purchase price limits, which you will need to qualify for.
While helpful, assistance programs can sometimes come with slightly higher interest rates compared to standard market rates.
Applying for and coordinating assistance programs can add a bit more time to the overall closing process.
Funding for some programs can be limited and subject to availability, so it's best to inquire early with an approved lender.

Your Buying Readiness, Measured