New Ohio Grant Programs Make Home Buying More Affordable

Whether you are planning to buy your first home or just your next home, the Ohio Housing Finance Agency has new “home ownership products” for which you may be eligible. They include: First-Time Homebuyer, Grants For Grads, Ohio Heroes, Next Home, and Purchase Rehab programs. (For a complete list of home buyer programs and qualification criteria, visit www.myohiohome.org .)

The programs are designed for low to moderate income families. Income limits vary from county to county in Ohio. In Hamilton, Clermont and Butler counties, One Person households may earn up to $85,440 and Three or More Person households may earn up to $99,680 per year. The maximum purchase price limit is $324,082 for One Family Homes.

First-Time Homebuyer

First Time Homebuyer offers competitive interest rates and mortgage options on 30-year, fixed-rate mortgage loans -- FHA, VA, USDA-RD and conventional mortgage loans -- designed especially for homebuyers with low- and moderate-incomes. Buyers must be first-time homebuyers or qualified military personnel.

Qualifications for an OHFA loan include: you have not owned a home before or had an ownership interest in your primary residence in the last three years; your credit score is 640 or higher and you meet income and purchase price limits.

Buyers can also add Your Choice! Down Payment Assistance, which allows homebuyers to choose either 2.5% or 5% of the home’s purchase price, up to $10,000. Assistance can be applied toward your down payment, closing costs or other pre-closing expenses. Down payment assistance is forgiven after seven years. If you sell or refinance your home within seven years, you must repay all of the assistance provided.

Grants for Grads

The Grants for Grads is for recent graduates – within the past 48 months – of an associate, bachelor's, master's, doctorate or other postgraduate degree program at an institution recognized by the U.S. Department of Education.

It provides a reduced mortgage interest rate and 2.5% or 5% down payment and closing cost assistance, up to $10,000. Down payment assistance is forgiven after five years as long as you remain in the state of Ohio. If you sell your home and move out of Ohio within five years, you must repay some or all of the assistance.

You may qualify for OHFA Grants for Grads if: you have not owned or had an ownership interest in your primary residence in the last three years; your credit score is 640 or higher and you meet income and purchase price limits.

Ohio Heroes

Provides a special .25% discount off OHFA's current interest rate to Ohio's heroes who work in critical professions including active military, active reserve or veterans; firefighters, EMTs or paramedics; licensed or certified direct patient caregivers; police and correction officers and teachers.

You may qualify for an OHFA Ohio Heroes loan if: you have not owned or had an ownership interest in your primary residence in the last three years; your credit score is 640 or higher and you meet income and purchase price limits; and you are a U.S. veteran, active duty military or member of the reserve components; police or correctional officer; firefighter; emergency medical technician or paramedic; licensed or certified direct patient caregiver; K-12 teacher or administrator or a college professor teaching 12+ hours per semester or quarter.

You can choose to include down payment assistance up to $10,000 in your Ohio Heroes loan. Down payment assistance is forgiven after seven years. If you sell or refinance your home within seven years, you must repay all of the assistance provided.

Next Home

OHFA's Next Home loan is available for Ohio homebuyers who currently own a home, or have owned a home in the past three years and are ready to purchase a new home.

Loans available through Next Home include conventional and FHA, VA and USDA-RD government loans. Buyers using Next Home can also receive down payment assistance equal to 2.5% or 5% of the home’s purchase price, up to $10,000.

Purchase – Rehab Loan

The Ohio Housing Finance Agency’s Streamlined 203(k) allows you to combine your mortgage loan and repair costs into one long-term, fixed-rate mortgage to finance both the purchase and the rehabilitation of the property.

The total mortgage amount is based on the projected value of the property after all of the repairs and updates have been completed, including the labor costs. The Streamlined 203(k) product is available to finance repairs up to $35,000. The property must be a one- to four-family home that has been completed for at least one year.

HOW TO APPLY FOR ALL PROGRAMS

Homebuyer Education is required to receive assistance from all programs, either online through the OHFA’s streamlined education program on their website (www.myohiohome.org), or you may also complete a course given by an approved HUD housing education agency. Local HUD approved agencies include NID Valentine/NOAH, which has offices in both Cincinnati and Cleveland. To contact a local Cincinnati agency on the required class, call Dee Steele, NOAH director, at (513) 761-NOAH (6624).

After completion of the required class the actual application process is completed through OHFA affiliated lenders, credit unions and mortgage companies across the state. Visit www.myohiohome.org website to find an OHFA-approved lender in your area, along with tips to help you with the application process, or call toll-free at 888-362-6432. In Cincinnati, call NOAH at 513-761-6624.