FHA Pays More Assistance and Asks More Credit
Program and regulatory figures verified September 25, 2026. Details change; confirm your scenario with us.
The government route pays more assistance and costs more credit. Which way that trade falls depends almost entirely on where your score sits.
The trade in one table
From the OHFA Government Program Guidelines and OHFA Conventional Program Guidelines, July 2026.
| Score | FHA available? | FHA assistance | Conventional available? | Conventional assistance |
|---|---|---|---|---|
| 640 to 649 | No | — | Yes, 50% DTI | 3% |
| 650 to 659 | Yes, 45% DTI | 3.5% | Yes, 50% DTI | 3% |
| 660 to 679 | Yes, 45% DTI | 3.5% | Yes, 50% DTI | 3% |
| 680 and above | Yes, 50% DTI | 3.5% | Yes, 50% DTI | 3% |
In the 640s the choice is made for you: FHA is simply not available on an OHFA loan, so conventional through HFA Preferred or HFA Advantage is the route, at 3%.
From 650 to 679 there is a real decision. FHA pays half a point more assistance but caps debt ratios five points lower. If your file is tight on ratios rather than on cash, conventional wins despite the smaller assistance.
At 680 and above both reach 50% DTI and the extra 0.5% of assistance on FHA becomes straightforwardly more money. The conventional side.
Leverage
FHA allows 96.5% loan-to-value with 105% combined, the combined figure covering the assistance second. VA reaches 103.3% and 108.3%, and USDA-RD 103.5% and 108.5%, both of which exceed the purchase price because they finance the funding or guarantee fee.
On a VA or USDA file the assistance is doing something different: rather than covering a down payment that does not exist, it is covering closing costs. That is still a real benefit and it is the usual reason a VA buyer looks at OHFA at all.
Co-signers on the government side
The government guidelines permit non-occupant co-signers and co-mortgagors as permitted by first mortgage guidelines, so the answer follows FHA, VA or USDA rules rather than adding an OHFA overlay. Their income sits outside the OHFA program income limit because they do not live in the property. How that works.
Manufactured homes
Permitted on government loans if at least doublewide, with a 660 minimum credit score and 45% DTI. Non-occupant co-signers are not allowed on manufactured homes. Property rules.
If the file goes manual
Manual underwrites tighten considerably: maximum ratios of 31% and 43% on FHA, 41% on VA, 29% and 41% on USDA, two months of PITIA reserves, one to two units only, and not on manufactured homes. The full matrix.
See also which first mortgage program to pair and the eligibility test.
Frequently asked questions
Can you use OHFA down payment assistance with an FHA loan?
Yes, and FHA carries the higher 3.5% assistance rather than conventional's 3%. On a $250,000 purchase that is $8,750 against $7,500. FHA on an OHFA loan requires a minimum 650 credit score, with debt-to-income capped at 45% from 650 to 679 and 50% at 680 and above, and a maximum 96.5% loan-to-value with 105% combined.
Is FHA or conventional better for OHFA assistance?
It depends on your credit score. Below 650 FHA is not available on an OHFA loan at all, so conventional is the route. From 650 to 679, FHA pays 3.5% assistance against conventional's 3% but caps DTI at 45% where conventional allows 50%, so a file tight on ratios does better conventional. At 680 and above both allow 50% DTI and FHA's larger assistance is the straightforward advantage.
What is the maximum LTV on an OHFA FHA loan?
96.5% loan-to-value and 105% combined loan-to-value, with the combined figure including the down payment assistance second mortgage. VA loans reach 103.3% and 108.3%, and USDA-RD loans 103.5% and 108.5%, since those programs finance their funding or guarantee fees.
Can a VA buyer use OHFA down payment assistance?
Yes, at 3.5% of the purchase price as a government loan, with a maximum 103.3% loan-to-value and 108.3% combined. Because VA requires no down payment, the assistance generally goes toward closing costs rather than a down payment. VA requires a 640 minimum credit score on an OHFA loan, with DTI at 45% from 640 to 659 and 50% at 660 and above.
Does FHA allow co-signers on OHFA loans?
Yes. OHFA's Government Program Guidelines permit non-occupant co-signers and co-mortgagors as permitted by first mortgage guidelines, so FHA's own rules govern. The co-signer's income sits outside the OHFA program income limit because OHFA counts only the income of people who both live in the property and are obligated on the note. Co-signers are not permitted on manufactured homes.
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.