Buying a Home in SW Ohio: Your Top Questions Answered

If you're thinking about buying a house in Cincinnati, Dayton, or anywhere in between, you've probably got a running list of questions. We hear a lot of the same ones from buyers all over SW Ohio, so we pulled together straight answers to the big ones.

Is now a good time to buy a house in SW Ohio?

It's a solid time to look. Inventory has grown a lot this year, active listings in Greater Cincinnati are up nearly 19% from a year ago, so buyers actually have room to shop around and negotiate again instead of scrambling in bidding wars. Prices are still climbing (Cincinnati's median sale price sits around $335,000, up about 5.5% from last year, and Dayton's median is near $260,000, up roughly 6%), so waiting for prices to drop isn't really the play. But you're not walking into the frenzy of a couple years ago either.

Should I wait for mortgage rates to drop before buying?

Probably not. Rates have been hovering right around 6.5% for a while now, and most forecasts don't show a big drop coming anytime soon. A lot of buyers are locking in now and planning to refinance later if rates fall, you can always change your rate down the road, but you can't go back and buy today's house at today's price. Sellers are also more willing to offer rate buydowns or closing cost credits than they were a couple years ago, so it's worth asking.

How much do I actually need for a down payment?

Less than you'd think. The old "20% down" rule isn't a requirement, conventional loans can go as low as 3% down, FHA loans as low as 3.5%, and VA or USDA loans can go to 0% down if you qualify. In the Cincinnati area, first-time buyers put down around $38,500 on average.

Are there down payment assistance programs in Ohio?

Yes, and this is one of the most underused resources out there. The Ohio Housing Finance Agency (OHFA) offers down payment assistance of 2.5% to 5% of your purchase price, which is forgiven if you stay in the home 7 years. There's also the FHLB Cincinnati Welcome Home grant, which can provide $10,000 to $20,000 toward your down payment or closing costs, up to $25,000 for veterans and active military. These programs do have income limits and funds can run out, so timing matters. Happy to walk you through what you might qualify for.

What are closing costs like in Ohio?

Generally 2% to 5% of the purchase price. On a $300,000 home, that's roughly $6,000 to $15,000, though the average Ohio buyer's closing costs land closer to $11,000. Ohio's transfer tax is low compared to a lot of states, which helps keep costs down.

How long does buying a house actually take?

From an accepted offer to closing day, plan on about 6 weeks for a conventional loan, a little longer for FHA or VA. Start to finish, house hunting included, most buyers are looking at somewhere between 3 and 6 months, depending on how specific your search is and how competitive the neighborhood is.

Is it a buyer's market or a seller's market right now?

It's somewhere in between, and it depends on where you're looking. Cincinnati is still moving fast in a lot of areas, homes are going under contract in a median of just 5 days. Dayton has a bit more breathing room, with homes typically on the market around 42 days. Either way, buyers have more negotiating power than they did a year or two ago.

Have a specific question about your situation, budget, timeline, a particular neighborhood? Reach out to the Howell Home Team and we'll help you sort it out.