The Most Permissive OHFA Route on Debt Ratios
Program and regulatory figures verified September 25, 2026. Details change; confirm your scenario with us.
Conventional pays slightly less assistance and asks noticeably less credit. On an OHFA file that makes it the default worth checking first, not the fallback.
Where conventional wins
Per the OHFA Conventional Program Guidelines, July 2026.
OHFA's matrix gives conventional loans through Fannie Mae HFA Preferred and Freddie Mac HFA Advantage a 50% maximum debt-to-income ratio from a 640 credit score, with no intermediate tier at all.
Every other loan type has a step. FHA sits at 45% until 680. VA and USDA sit at 45% until 660. Conventional simply starts at the top.
| Score | Conventional | FHA | VA / USDA |
|---|---|---|---|
| 640 to 649 | 50% | Not available | 45% |
| 650 to 659 | 50% | 45% | 45% |
| 660 to 679 | 50% | 45% | 50% |
| 680 and above | 50% | 50% | 50% |
For a buyer whose constraint is monthly debt rather than cash at closing, that difference is worth more than the half point of extra assistance the government route pays.
What it costs
Assistance drops from 3.5% to 3%. On a $250,000 purchase that is $7,500 instead of $8,750, a difference of $1,250.
Set that against five extra percentage points of allowable DTI on a mid-range score and the comparison is rarely close for a ratio-constrained file. Size it on your price.
Which conventional products
Only Fannie Mae HFA Preferred and Freddie Mac HFA Advantage. OHFA's guidelines state that standard Fannie Mae HomeReady and Freddie Mac Home Possible are not available, so this is not an ordinary conventional loan with assistance bolted on.
Mortgage insurance follows the HFA products, which is generally where their advantage over standard conventional sits. We do not publish rate or premium figures here.
Leverage and co-signers
- Fannie Mae HFA Preferred: 97% / 105% on one unit and MH Advantage; 95% / 105% on 2 to 4 units and standard manufactured.
- Freddie Mac HFA Advantage: 97% / 105% on one unit; 95% / 105% on 2 to 4 units; 95% / 95% on manufactured.
- With a non-occupant co-signer, both drop to 95% / 105%.
Non-occupant co-signers are allowed for both agencies, though only on one-unit properties when using Freddie Mac, and not on manufactured homes at all. The co-signer rule.
Note the Freddie Mac manufactured line, where the combined figure does not exceed the first mortgage figure, so the assistance cannot sit on top in the usual way.
Two to four units
Conventional handles 2 to 4 units at 95% / 105%, with credit and DTI tightening to 45% from 640 to 679 and 50% at 680 and above per Fannie Mae and Freddie Mac. The borrower occupies one unit. Property rules.
See also the FHA comparison and the full credit matrix.
Frequently asked questions
Can you use OHFA down payment assistance with a conventional loan?
Yes, through Fannie Mae HFA Preferred and Freddie Mac HFA Advantage, which are the only conventional products OHFA offers. Standard HomeReady and Home Possible are not available. Conventional assistance is 3% of the purchase price against 3.5% on government loans, but conventional allows a 50% debt-to-income ratio from a 640 credit score.
Why is conventional more permissive than FHA on an OHFA loan?
OHFA's own overlays set it that way. Conventional loans through HFA Preferred or HFA Advantage reach the 50% maximum DTI from a 640 score with no intermediate tier, while FHA is capped at 45% until a 680 score and is unavailable below 650 entirely. For a borrower constrained by monthly debt rather than cash, that makes conventional the stronger route on an OHFA file.
What is HFA Preferred and HFA Advantage?
They are the Fannie Mae and Freddie Mac conventional products built for housing finance agency programs like OHFA's. On an OHFA loan they are the only conventional options, with standard HomeReady and Home Possible excluded. Maximum leverage is 97% loan-to-value and 105% combined on one unit, dropping to 95% and 105% on two to four units.
Is the assistance smaller on a conventional OHFA loan?
Yes, 3% of the purchase price against 3.5% on FHA, VA and USDA-RD. On a $250,000 purchase that is $7,500 instead of $8,750, a difference of $1,250. Whether that matters depends on your file: a borrower tight on debt ratios usually gains more from conventional's higher DTI allowance than they lose on the assistance.
Can a co-signer be used on an OHFA conventional loan?
Yes, for both Fannie Mae and Freddie Mac, though Freddie Mac limits non-occupant co-signers to one-unit properties and neither agency allows them on manufactured homes. With a non-occupant co-signer the maximum is 95% loan-to-value and 105% combined on both products, slightly below the 97% available without one.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Cornerstone First Mortgage is a participating lender in the Ohio Housing Finance Agency's programs. The Ohio Housing Finance Agency is an Equal Opportunity Housing entity. Loans are available on a fair and equal basis regardless of race, color, religion, sex, familial status, national origin, military status, disability or ancestry. Please visit www.ohiohome.org for more information. Educational content about financing, not a loan commitment and not legal or tax advice. OHFA program terms and limits are set by the Ohio Housing Finance Agency and change; figures here carry the date we verified them. Loans are subject to borrower and property qualification.