The 1% down purchase program is one of the best first time home buyer programs in Ohio. It’s designed to help qualified borrowers get into a home with just a 1% down payment—making homeownership more accessible than ever.
This program is built on top of the popular Fannie Mae HomeReady® loan—designed specifically to support first-time homebuyers with low down payment options, flexible underwriting, and reduced mortgage insurance costs.
1% down purchase can be the perfect loan for first time home buyer programs in Ohio. Qualifying is based on income up to 80% of Area Median Income!
If you are a first-time buyer with strong credit and an income at or below 80% of the Area Median Income for your location, you may be a great candidate for this loan program. Instead of paying a 3% down payment upfront, the lender provides a grant to the borrower equal to the lesser of 2% of the purchase price of $7,000. This grant does not have to be paid back. There is no elimination period meaning that this is the borrower’s money from day 1.
Many so-called first-time buyer programs—even those that advertise a “forgivable grant”—are actually structured more like gimmicks. In most cases, the lender is offering a forgivable second mortgage or grant that applies to your down payment, but with strings attached.
These programs almost always come with higher-than-market interest rates. Why? Because the lender knows you’ll need to keep that loan (and not refinance) for a set period—often 3 to 10 years. If you refinance before that window closes, you may be required to repay the down payment assistance.
As a result, you could end up locked into a loan with an inflated rate, ultimately costing you thousands more over time.
The 1% Down Conventional program stands apart. You can refinance just six months after closing if rates improve—and the grant is still yours to keep. That kind of flexibility can make a significant financial difference and is one of the key reasons this program is worth serious consideration.
Not every lender can offer this unique loan program. Instead of requiring a 3% down payment, the borrower receives a 2% grant, up to $7,000, toward the purchase price.
This program is ideal for someone just starting out—someone with good credit and a stable income but without the time or ability to save for a down payment.
In addition, buyers can negotiate with the seller to contribute up to 6% of the purchase price toward prepaid items and closing costs.
What makes this one of the best first time home buyer programs in Ohio is the income eligibility limit. To qualify, your income must be at or below 80% of the Area Median Income (AMI)—which is $88,688 in Central Ohio. Because home values and incomes in the region are modest, many local buyers qualify and can take full advantage of this opportunity.
Best of all, the grant does not need to be repaid. After a few years of making payments, the buyer can refinance or move up to a larger home without owing the original grant back.
This program helps ease the financial stress many first-time buyers face, especially early in their careers.
At Barrett Financial, we prioritize taking a complete application from the beginning. By collecting all necessary documentation upfront, we reduce the need for follow-up requests—ensuring a smoother, faster, and less stressful experience for everyone involved.
We’ve been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 181106
Personal NMLS: 1599243
OH RM.804600.000
Ron Pero
81 E Mill St., Suite 300
Gahanna, OH 43230
Barrett Financial Group, L.L.C.
2701 East Insightway, Suite 150
Chandler, AZ 85286
Ronald Alvin Pero | NMLS #1599243 | Barrett Financial Group, L.L.C. | NMLS #181106
2701 East Insightway, Suite 150, Chandler, AZ 85286 | OH RM.804600.000 |
Equal Housing Opportunity This is not a commitment to lend. All loans are subject to credit approval. | NMLS Consumer Access Visit Barrett Financial Group’s Website
