Cincinnati Ohio, The Queen City, its reputation proceeds it. Cincinnati is a City loved by those that live there and, due to some negative press the past decade, seen as a hot button city by outsiders. If you are lucky enough to see all the good in the city of Cincinnati then maybe you have thought about buying a home there, let’s talk about your options.

Mortgage loan options

Conventional Mortgage

Aspects of a Conventional Mortgage:

  • 10% of the loan amount for a down payment.
  • Good credit.
  • Conventional mortgages typically have the best rates.
  • Loan Duration is typically 15 to 30 years.

This is the most commonly used type of mortgage and it is straightforward. One aspect of the conventional mortgage that isn’t talked about is the private mortgage insurance or PMI. If you can offer a down payment of 20% then you don’t have to worry about PMI but if not, then listen up. PMI projects your lender just in case you decide to stop making payment. (Not recommended) It is a cost that varies depending on your lender but the good news is that PMI is now a tax write off, so while you must pay the PMI with each payment until you hit the 20% mark you will basically get it back in April at the end of tax season.

FHA Mortgage

Aspects of an FHA Mortgage

  • Requires a 3.5% down payment
  • Lower credit scores are acceptable
  • Less than favorable interest rates.

This is typically a first-time home buyers best friend and worst nightmare. A young person looking to buy a home likely won’t have 10-20% of the loan for a down payment so this loan may be their saving grace as it only requires 3.5% of the loan as a down payment. This saving grace could also be a worst nightmare too if this young person isn’t making great money as the interest rates and PMI could bury them.

VA Mortgage

Aspects of a VA Mortgage

  • Be a veteran
  • Zero down payment
  • Great interest rates

A VA Loan would be everyone’s first choice if only we were all Veterans. No down payment, good interest rates, it’s a no brainer.

USDA Rural Housing loan

  • Live somewhere “Rural”
  • Zero down payment
  • Great interest rates

This is very similar to the VA loan except instead of being a veteran you just must buy/build your house in a “rural” area. These rural areas are sporadic so you could be lucky enough to be in one without even knowing it.

ARM

  • Changing interest rates
  • 10% down payment
  • Lower credit scores accepted

The adjustable Rate Mortgage catches a lot of flak for being partially responsible for the 2008 housing bubble but that’s just because it was. This mortgage starts you off at an unbelievably low interest rate for the first 5 years but then adjusts that rate to correspond to current market conditions. This loan is a gamble.

Median House Prices

The Median house price, not including distressed homes, was $157,000 in 2012.

Median Income

The median family income in 2012 was $69,500.

School Systems

Children in Cincinnati Schools received a “C’ in the prepared for success category per Ohio.gov’s report card.

Cincinnati Schools scored 5 out of 10 in test results per greatschools.org.

Crime Rates

Cincinnati scores a 2 on the crime index meaning it is safer than 2% of U.S. cities.