Mortgage Guide for Ohio

Property Taxes Drive Up Monthly Payments

Ohio’s effective property tax rate of approximately 1.56% is well above the national median of approximately 1.1% . On a $220,000 home, that translates to roughly $3,432 per year, or $286 per month added to your mortgage payment through escrow. When lenders calculate your debt-to-income ratio, this property tax burden counts against your qualifying income. Even though Ohio home prices are relatively affordable, the high property tax rate means a larger share of each payment goes to escrow rather than principal and interest. Ohio property taxes also vary significantly by county and school district. Cuyahoga County (Cleveland) has some of the highest effective rates in the state, while rural southeastern counties tend to be lower. Buyers should check the specific tax rate for their target property, not just the state average, when estimating monthly payments.

Affordable Prices Create Conforming Limit Headroom

All 88 Ohio counties use the baseline conforming loan limit set by FHFA of $806,500 for a single-unit property. With a statewide median home price of approximately $220,000, most Ohio borrowers have substantial headroom below the conforming limit. This means virtually all conventional purchases qualify for conforming loan pricing, which generally offers the best available interest rates. Borrowers would need to purchase a home at roughly three to four times the median price before encountering jumbo loan territory, making jumbo financing rare outside a handful of affluent suburban markets in Greater Columbus, Cincinnati, and Cleveland. FHA loan limits in all Ohio counties sit at the national floor of $524,225, which also provides generous coverage relative to typical purchase prices.

Conveyance Fee Structure Varies by County

Ohio does not use the term “transfer tax” but instead charges a conveyance fee on real estate transactions. The fee has two components: a mandatory state portion of $1 per $1,000 of sale price (0.10%) and a permissive county fee of up to $3 per $1,000 (0.30%). Most of Ohio’s 88 counties levy the full permissive amount, resulting in a combined rate of $4 per $1,000 (0.40%). On a $220,000 purchase, that totals approximately $880. However, some counties charge less than the maximum, so closing cost estimates should use the specific county rate. The fee is customarily paid by the seller in Ohio, though this is negotiable. For a detailed breakdown of how transfer-related fees affect your closing statement, see our guide on transfer taxes and recording fees.

OHFA Programs Offer Targeted Professional Assistance

The Ohio Housing Finance Agency (OHFA) administers one of the more expansive state homebuyer assistance lineups in the Midwest. Beyond standard down payment assistance available to all qualifying buyers, OHFA operates profession-specific programs. Ohio Heroes provides reduced-rate mortgages and DPA for military members, veterans, active-duty reservists, teachers, nurses, and other public service professionals. Grants for Grads targets recent college graduates within the past 48 months, combining down payment assistance with below-market interest rates. The breadth of OHFA’s targeted programs means borrowers should check eligibility for multiple program tracks, as qualification for one does not preclude consideration for another. Most OHFA programs require a minimum credit score of 640, income below county-specific limits, and completion of a homebuyer education course. Down payment assistance is typically offered as 2.5% or 5% of the purchase price in the form of a forgivable loan.

County-Level Property Tax Variation: A Distinctive Ohio Factor

Ohio’s property tax system is unusually decentralized, with rates set at the county, municipality, township, and school district levels. The result is dramatic variation in effective tax rates across relatively short distances. In Cuyahoga County, effective rates can exceed 2.0% , while some Appalachian counties in southeastern Ohio have rates below 1.0%. This variation directly affects mortgage payments and qualification. Two homes with identical purchase prices in different Ohio counties can produce monthly escrow differences of $100 to $200 or more, which in turn changes the DTI calculation and the maximum loan amount a borrower qualifies for. When shopping for homes across county or school district lines, recalculating affordability for each jurisdiction is essential. Lenders will use the specific property’s tax rate, not the state average, for underwriting.

Insurance Costs Are Relatively Low

Ohio’s homeowners insurance rate of approximately 0.23% of home value is below the national average . On a $220,000 home, that translates to roughly $506 per year, or $42 per month. While Ohio faces weather risks including tornadoes and severe storms, premiums remain moderate compared to coastal or hurricane-prone states. Portions of Ohio along Lake Erie and major river systems may fall within FEMA-designated flood zones, requiring separate flood insurance. Buyers along the Ohio River, Lake Erie shoreline, or near major tributaries should verify flood zone status early in the purchase process.

What This Means for Your Monthly Payment

On a $220,000 Ohio home with 10% down ($198,000 loan) at a 6.5% interest rate, estimated monthly costs break down as follows: principal and interest of approximately $1,251, property tax escrow of approximately $286, homeowners insurance of approximately $42, and PMI of approximately $83 (assuming 0.5% PMI rate). The total estimated monthly payment is approximately $1,662. The property tax component alone accounts for roughly 17% of the total payment, which is notably higher than most states. PMI rates vary by credit score, loan-to-value ratio, and insurer, so your actual cost may differ from this estimate. Using the affordability calculator with Ohio defaults will give you a personalized estimate based on your income and debts.