Ohio residents interested in buying a first home have plenty of available opportunities for assistance. Programs come in the form of grants, closing cost and down payment assistance, and low-cost mortgages. First time home buyer programs in Ohio are administered at the state level, the county level, and the city level. There are also a handful of nonprofit organizations that provide assistance from time to time.
Trying to figure out what's available in your area at any given time can be a bit challenging. The best way to find out what you might be eligible for is to consult with a participating mortgage lender. This could be a bank, a mortgage broker, or a credit union. If you haven't yet chosen a mortgage lender, your real estate agent can advise you regarding what's available to you. Just remember that your real estate agent is not a banker - he or she will not be able to tell you everything about individual first time home buyer programs.
The Ohio Housing Finance Agency (OHFA)
The Ohio Housing Finance Agency is a state entity that was spun off as an independent agency in 2005. Its primary mission is to help facilitate affordable housing for residents of Ohio, especially those with low to moderate incomes, disabilities, and special needs. The agency fulfills its mission by offering assistance to first time home buyers, senior citizens, and others with genuine need. As an independent agency the OHFA is able to better manage all the available resources at its disposal in a more efficient and profitable way. Currently the OHFA hands nearly half a dozen home buying programs, several of which apply to first time home buyers.
First Time Home Buyer Program
Low and moderate income home buyers are the target of Ohio's first time home buyer program. This program provides mortgages with very competitive interest rates to families and individuals who meet certain requirements. To qualify for one of these mortgages you must meet the definition of a first time home buyer, meet minimum credit score requirements, meet minimum income requirements, and have a signed sales agreement for the property you wish to purchase. Properties must be qualified according to specific requirements set by the state of Ohio.
Ohio Heroes Program
Many states have begun adopting programs similar to the Ohio Heroes Program to help first time home buyers in specified occupations purchase their first property. This program offers a 30-year fixed-rate mortgage with an interest rate at least .25% lower than conventional mortgages. In addition to meeting income requirements, credit requirements, and first time home buyer qualifications, borrowers must be involved in one of the following occupations: military, firefighter, EMT or paramedic, health care worker, teacher, or police officer. Borrowers must also have a signed sales agreement for a qualified property.
Down Payment Assistance Grant
Low income families and individuals who need assistance with closing costs and down payment may be eligible for a grant specifically designed for that purpose. These grants are available in conjunction with all OHFA loan programs to reduce the amount of out-of-pocket expenses a borrower is responsible for. Grants can be up to 2.5% of the total purchase price of the property. The grant can be used for down payment, closing costs, or other costs associated with purchasing of the home. Those who request grant assistance will then have to accept a mortgage interest rate .5% higher than what OHFA currently offers. In order to qualify you must meet all of the qualifications for your mortgage program and complete a first time home buyer’s education program.
Grants for Grads
Ohio offers a special program to help recent college graduates who meet certain eligibility requirements afford their first home. Eligible borrowers must be high school graduates who have earned a college degree within 24 months of application, and may not have owned a principal interest in a residence within the previous three years. The Grants for Grads program provides up to 2.5% of the total purchase price of the home to be used for closing costs, down payment, or qualifying prepaid expenses.
This grant is issued as an interest-free forgivable loan with no repayment date. As long as the buyer remains in the home as a principle residence for at least five years, the grant need never be paid back. If he decides to move out of the house within the five-year window the grant must be repaid. As with the previous grant program, borrowers must complete a first-time home buyer education program in order to receive the assistance.
County and Municipal Programs
Counties and municipalities often provide their own programs to help first-time home buyers. Below is a list of counties and cities in Ohio currently listed as having available programs. Be advised that this information comes from HUD and is not guaranteed to be correct.
- City of Canton
- City of Lakewood
- City of Mansfield
- City of Massillon
- Summit County
- Cincinnati/Hamilton County
- Cleveland/Cuyahoga County
- Columbus/Franklin County
- Dayton/Montgomery County
- Hamilton/Middletown/Butler County
- Springfield/Clark County
- City of Toledo Downpayment Assistance Program
- Toledo Community Development Corporations
- Toledo Division of Housing
- Akron/Summit County
- City of Akron
- East Akron Neighborhood Development Corp.
- City of Barberton
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