Areas We Serve
No matter if you want to live in the capital city of Columbus or suburbs like Oakwood or Ottawa Hills, Griffin Funding offers Ohio mortgage loans throughout the entire state. A few of the areas we serve include:
- Bowling Green
- Shaker Heights
How Do Home Loans Work in Ohio?
Mortgage loans in Ohio work similarly to loans in other states. However, there is a lower cost of real estate that can help you secure a home for less, making it easier to purchase a home in Ohio than in other popular states in the nation.
The process to secure Ohio mortgage loans may be slightly different, depending on Ohio mortgage lenders and their requirements. However, in general, the process is straightforward. That said, there are a few factors you will need to consider since they can impact your eligibility and loan amount.
A minimum credit score
All Ohio mortgage lenders require a minimum credit score, but the requirements may vary depending on the lender. Typically, the better your score, the lower Ohio mortgage rates will be, but you can secure a home loan with a minimum credit score and pay a higher interest rate, which will not affect your monthly payments too much.
Ohio mortgage lenders will also require income verification for traditional Ohio home loans. However, how your income is verified will depend on the type of home loan you choose.
For example, some non-QM mortgage loans do not require tax returns or pay stubs and allow you to verify your income with bank statements and other assets. For traditional mortgage loans, such as FHA loans and conventional loans, your mortgage lender will ask for tax returns, bank statements, and pay stubs going back at least two years, depending on your job history.
Debt-to-income (DTI) ratio
Your debt-to-income (DTI) ratio helps Ohio mortgage lenders determine your ability to repay the loan. Most lenders have a minimum DTI ratio, so it is important to divide your debts by your gross monthly income to find your ratio before applying.
Most lenders look for a DTI ratio of 43% or lower, but some loans allow you to qualify with a DTI as high as 55%.
Your down payment will affect the loan amount you need. The higher your down payment, the less you will need to borrow. However, the down payment required depends on the type of home loan you apply for and your financial situation.
For example, VA loans allow you to qualify for a loan with a 0% down payment, while other loans require anywhere from 3.5-20% down. With most loans, you should try to put down at least 20% to avoid the need for mortgage insurance (PMI), which will increase the amount you pay over the life of the loan.
Ohio Mortgage Programs
Griffin Funding is a premier mortgage lender in Ohio, offering a wide selection of mortgage loans, including fixed-rate mortgages, adjustable-rate mortgages (ARMs), traditional loans, and non-QM loans.
Our mortgage programs include:
- Asset-based loans: With asset-based loans, you can qualify for a mortgage using your assets as income. These loans allow you to choose which assets you use to qualify, but the more your assets are worth, the more you can borrow.
- Bank statement loans: Bank statement loans allow self-employed borrowers to qualify for a loan based on their checking accounts.
- DSCR loans: DSCR loans are designed to help real estate investors secure financing for investment properties based on their debt service coverage ratio (DSCR) to determine their ability to repay.
- VA loans: Qualifying veterans and their spouses are eligible for VA loans that do not require a down payment, making it easier for veterans and service members to purchase a home. These loans also come with lower interest rates and can be used to refinance.
- Conventional loans: Conventional loans are the most popular loan option, but they can be difficult to qualify for since they have stringent requirements. However, if you can meet these requirements, they can offer better interest rates, saving you money over the life of the loan.
What Are the Steps to Buying a House in Ohio?
Buying a house in Ohio may seem daunting, especially for first-time home buyers. Luckily, Griffin Funding simplifies the process and can walk you through every part of the mortgage approval process, from application to finalization.
Here is how to secure your home loan in Ohio:
- Get pre-approval: A pre-approval letter allows you to go shopping for a house knowing an estimate of how much you can afford.
- Apply for a mortgage: Your pre-approval letter is not your mortgage approval. Even though you are pre-approved, it does not mean you have your home loan yet. You will need to submit an application with an Ohio mortgage lender to get pre-approval.
- Provide documentation: After reviewing your application, your preferred mortgage lender will ask for documentation and verification that you have the ability to repay the loan. The type of documentation you share will depend on the type of loan and its requirements.
- Approval: If you are approved for a loan, the lender will release funds and allow you to move forward with purchasing the home.
Griffin Funding aims to complete the entire process in 30 days or less to ensure you can put down an offer on a home before it is sold.
Apply for an Ohio Home Loan Today
Ready to become a homeowner in Ohio? We make the home loan process simple and easy. Contact us today to discuss your options, and our loan specialists will help you choose the right home loan based on your unique financial circumstances. Whether you are considering FHA loans for first-time home buyers or non-QM loans for self-employed individuals and retirees, Griffin Funding can help.