In Ohio, what is the maximum allowable loan-to-value (LTV) ratio for FHA loans?

The maximum allowable loan-to-value (LTV) ratio for FHA loans in Ohio is set at 96.5%. This means that borrowers can finance up to 96.5% of the home's value, requiring a down payment of only 3.5%. This relatively high LTV ratio makes FHA loans an attractive option for first-time homebuyers and those with less-than-perfect credit, as it lowers the barrier to entry into homeownership. The program aims to promote homeownership by allowing individuals to secure financing with a smaller upfront investment.

In contrast, other options reflect lower LTV ratios, which are not characteristic of FHA loans and therefore do not provide the same accessibility for borrowers. The requirement of a lower down payment in FHA financing is a key feature that differentiates it from conventional loan products, where LTV ratios may typically be more conservative.