For many Dayton renters, the idea of becoming a homeowner can feel overwhelming. You may wonder where to start, whether your credit is good enough, how much money you need, or whether the process is simply too complicated. The truth is far more encouraging: thousands of Dayton residents have transitioned from renting to owning using clear, straightforward steps that anyone can follow.
With new state tax credits, generous local homebuyer programs, and the continued affordability of Dayton homes, 2025 is one of the most favorable years in recent history for local renters to begin their journey toward ownership. This guide outlines the process in a clear, organized, professional format—so you can see exactly what to expect at each stage.
Why This Guide Matters for Dayton Renters
Before diving into the steps, it’s important to understand why becoming a homeowner in Dayton is more achievable than many believe. Dayton remains one of the most affordable real estate markets in the Midwest. Homes commonly range from $85,000 to $140,000, especially in neighborhoods such as Westwood, Residence Park, Hillcrest, Wesleyan Hill, Twin Towers, and Old North Dayton.
When combined with:
- Ohio’s new 15.38% homeowner tax credit
- Dayton’s $10,000 homebuyer grant
- Built-in down payment assistance options
- Positive-only rent reporting
- Soft credit checks with no score impact
—the barrier to entry becomes significantly lower than most people realize. Whether your goal is to build generational wealth, stabilize housing costs, or simply stop paying rising rents, this step-by-step guide will show you how to get there.
Step 1: Determine Whether You Want to Stay in Dayton Long-Term
Before beginning the homeownership process, it’s helpful to decide whether Dayton is where you want to build long-term stability. Many renters choose to buy because they want:
- Consistency in neighborhoods and schools
- To invest in the city’s redevelopment
- Lower long-term housing costs
- A home to pass down to future generations
- Stability after years of rising rent
If Dayton is where you envision your next several years—or your family’s next several decades—homeownership becomes an excellent financial and personal fit. And because home prices in Dayton remain modest compared to surrounding metro areas, entering the housing market now positions you for long-term growth.
Step 2: Review Your Current Rent and Monthly Budget
Your next step is evaluating your current monthly rent and overall budget. Across most Dayton neighborhoods, the cost to rent a single-family home typically falls between $900 and $1,300 per month. Many renters assume a mortgage would be more expensive, but that is often not the case.
For example, a home purchased for $110,000 with a standard mortgage may result in monthly housing costs similar to local rent—especially after factoring in Ohio’s expanded homeowner tax credit and the financial stability that comes with fixed-rate mortgages.
Understanding that your rent is already close to (or even higher than) a mortgage helps clarify: you may not be far at all from owning a home in Dayton.
Step 3: Start with a Soft Credit Check (No Score Impact)
This is one of the most important—and easiest—steps in the entire process. A soft credit check gives you a clear picture of your current standing without lowering your score.
Our lending partner, Lance Tearnan of Texana Bank, performs a soft pull that does:
- Not impact your credit score
- Not show up as a hard inquiry
- Not obligate you to buy anything
The purpose is simple: to help determine your starting point and identify the best path forward. Many renters are closer to qualifying for a mortgage than they think, even with older collection accounts, late payments, or modest credit scores.
The goal of this step is not judgment—it’s clarity.
Begin Your Free Soft Credit Check
Step 4: Understand How Credit Scores Factor into Homeownership
Credit scores play an important role in qualifying for a mortgage, but they don’t have to be perfect. Many first-time buyers in Dayton qualify with credit scores in the mid-to-low 600s. FHA loans, VA loans, and other first-time buyer programs are specifically designed with more flexible requirements.
Your soft credit check will show:
- Your credit score range
- Any outstanding accounts to address
- What type of loan programs fit your profile
- Whether you are ready to buy now or need a short-term improvement plan
If improvements are needed, the Texana Bank team provides a simple, step-by-step plan based on your specific credit profile. This might include paying down certain balances, resolving small outstanding accounts, or opening a new secured card.
Additionally, if you rent with Proper Management, you’re already building positive momentum: our Resident Benefits Package includes positive-only credit reporting, meaning every on-time rent payment counts in your favor.
Step 5: Learn About Down Payment Requirements (They’re Lower Than Most Expect)
One of the biggest misconceptions in homeownership is the belief that buyers need a 20% down payment. This myth keeps many renters from even exploring their options.
In Dayton, most homebuyers use programs that require far less:
- FHA loans: 3.5% down
- Conventional loans: as low as 3% down
- VA loans: 0% down for qualified borrowers
- USDA loans: 0% down in eligible areas near Dayton
For a $110,000 home, that means:
- 20% down: $22,000 (not required)
- 3.5% down: $3,850
- 3% down: $3,300
- 0% down: $0
Even better, many Dayton families don’t need to save this at all—because of the next step.
Step 6: Take Advantage of Dayton’s Down Payment Assistance Programs
Dayton renters have access to one of the most generous local support systems in Ohio. The city currently offers a $10,000 homebuyer grant for qualifying purchases inside Dayton city limits. This is free money that does not need to be repaid.
Additionally, the Texana Bank team tracks every local, state, and federal program, including:
- OHFA down payment assistance
- Employer-assisted housing programs
- Federal first-time homebuyer incentives
- Temporary and seasonal grants
- Neighborhood revitalization programs
This means renters don’t have to sort through dozens of programs or guess which ones apply. The lending team handles that complexity and identifies all available assistance on your behalf.
When combined with the new homeowner tax credit, these programs make buying a home in Dayton more affordable than at any point in recent memory.
Step 7: Explore Homes That Fit Your Budget
Once you understand your budget range, assistance options, and credit profile, the next step is reviewing available homes. Dayton’s housing market includes a mix of historic properties, single-family homes, and neighborhoods with strong long-term growth potential.
Typical Dayton homes for first-time buyers include:
- 2–3 bedroom homes in Westwood
- Starter homes in Residence Park
- Brick homes in Hillcrest
- Updated properties in Wesleyan Hill
- Affordable options in Twin Towers
- Early 20th-century homes in Old North Dayton
Because most renters want to avoid moving twice, our program makes this step even simpler: in many cases, you can choose to purchase the home you’re already renting.
View Homes Available in Dayton
Step 8: Review Total Monthly Costs (Mortgages Are Often Cheaper Than Rent)
One of the biggest surprises for Dayton renters is that their projected mortgage payment is often similar to—or lower than—their current rent. This is largely due to Dayton’s affordable home prices and Ohio’s expanded homeowner tax credits.
Let’s look at a typical example:
Home price: $110,000
Estimated monthly costs:
- Principal & interest: ~$650
- Taxes & homeowner insurance: ~$200
- Total: ~$850/month
Meanwhile, rent for a similar Dayton home may range between $950 and $1,250. When landlords raise rents due to the loss of their tax credit, renters may face additional increases. This widening gap is one of the strongest reasons to transition to ownership now.
Step 9: Work With the Lending Team to Finalize Your Mortgage Plan
Once you’ve identified the home you want and received your soft credit analysis, the lending team begins assembling your full pre-approval package. This includes:
- Verification of income and employment
- Review of credit and debt-to-income ratios
- Confirmation of down payment assistance
- Identification of the best loan type for your situation
The result is a clear, documented plan that tells you exactly what you qualify for, what steps (if any) you need to take, and what your monthly payment will be.
Step 10: Structure the Purchase in a Fair, Transparent Way
When you buy a traditional home, you negotiate with the seller, pay inspection fees, handle repairs, and often face competitive bidding. Our program simplifies much of that process.
Because Dayton Proper owns the home you’re renting, we can structure the purchase in a way that:
- Includes down payment assistance directly in the contract
- Does not add hidden fees or inflated rent credits
- Keeps the process ethical and transparent
- Allows you to stay in the same home
You don’t have to outbid anyone. You don’t have to move. You simply transition from paying rent to paying your mortgage.
Step 11: Close on Your Home (The Final Step)
At closing, you’ll sign the final loan documents, transfer ownership, and receive the keys. This moment represents more than a financial milestone—it’s a foundation for the future. From that day forward:
- Your payments build equity
- Your costs stabilize
- Your home becomes an asset
- Your tax credits kick in
- Your family begins building generational wealth
This step often feels emotional for new homeowners—and rightfully so. It marks the end of uncertainty and the beginning of long-term stability.
Step 12: Start Building Wealth Immediately
Once you own your home, wealth begins to accumulate in four key ways:
- Equity growth as your mortgage balance decreases
- Appreciation as Dayton home values rise
- Tax savings through credits and deductions
- Long-term stability that creates a foundation for future generations
These benefits compound over time. Even a modest home purchased today can become a future stepping stone for children or grandchildren. This is why homeownership remains the number one way to build generational wealth in the United States—and one of the best paths forward for Dayton families.
Final Thoughts: You Don’t Need to Have Everything Figured Out to Get Started
Becoming a homeowner does not require perfection. It requires:
- A willingness to take the first step
- A team who will guide you
- A clear plan based on your budget and goals
The combination of Dayton’s affordable home prices, powerful grant programs, and Ohio’s expanded homeowner tax credit has created one of the best opportunities in decades for renters to transition into stable, long-term homeownership.
See Where You Stand Today (Free Soft Credit Check)
The first step is simple and risk-free. Our lending partner offers a soft credit pull that gives you personalized insight without impacting your credit score. This is the safest and easiest way to understand your homeownership potential.
Start Your Free Soft Credit Check
Explore Homes Available Through Dayton Proper
Many of our homes are available to rent today and purchase when you’re ready. Browse the available homes and begin your journey toward homeownership in Dayton.