Ohio Housing - OHFA

Happy young couple moving in new home first time

Ready to open the door to a home of your own? The Ohio Housing Finance Agency’s (OHFA) homeownership loan programs can help. Whether you are a first-time buyer or a buyer in a target area, OHFA and Option Financial as an OHFA approved lender, have a program that’s right for you. Qualifying first-time homebuyers can choose from competitive conventional and government-insured loans, all with 30-year, fixed-rate mortgages.

First Time Home Buyer

Thousands of low- and moderate-income Ohioans have purchased homes of their own thanks to OHFA’s First-Time Homebuyer Program. The competitive interest rates and mortgage options on our 30-year, fixed-rate mortgage loans make it affordable for qualifying buyers to realize the dream of homeownership.

Do I Qualify?

Applicants for the First-Time Homebuyer Program must meet OHFA income limits, and properties must meet purchase price limits. The limits vary by city and town.

To qualify for an OHFA loan, you must also qualify as a first-time homebuyer.

  • Someone who has never owned real estate.
  • Someone who has not owned or had an ownership interest in his/her principal residence in the last three years.
  • Be a qualified military veteran.
  • Purchase a home in a target area. 
  • Be creditworthy. Minimum credit scores may apply.
  • Have a signed Purchase and Sales Agreement for a qualifying property.
  • Qualify for the loan being requested. Lenders will assess your ability to afford a home by considering income, assets, job stability, liabilities, and other criteria.

Additional property requirements:

  • Properties are limited to two acres unless additional acreage is required by local health or safety code.
  • Qualifying properties include:
    • Existing homes: single-family dwellings, duplexes, and up to four-unit properties
    • Spec/Nearly completed homes: one-unit single-family dwellings
    • Modular/Manufactured homes: one-unit single-family dwellings, permanently affixed to a foundation

Down Payment Program - OH

Eligible buyers can combine OHFA’s Down Payment Assistance Grant with our homeownership loan programs to help pay for down payments, closing costs, and other out-of-pocket expenses associated with buying a home. 

If paying for a down payment and closing costs have kept you from getting into a home of your own, OHFA’s Down Payment Assistance Grant may be able to help. Eligible borrowers participating in the First-Time Home Buyer Program, Target Area Loan Program, and Ohio Heroes Program can use the grant to greatly reduce the out-of-pocket expenses associated with buying a home.

If you qualify for one of OHFA’s home loan programs, you can choose to take advantage of the Down Payment Assistance Grant.

  • OHFA will issue a grant in an amount up to 2.5% of your home’s purchase price.
  • You can use the grant to pay for the down payment, closing costs, or other prepaid
    expenses incurred prior to closing. Keep in mind that while the grant will greatly
     reduce your expenses, you may still be required to pay for some costs out of pocket.
  • If you take advantage of the grant, your mortgage interest rate will be .5% higher
     than OHFA’s current mortgage rates.

 

Do I Qualify?

To qualify for the Down Payment Assistance Grant, you must meet all requirements for your OHFA homeownership loan program. Check requirements for the First-Time Homebuyer Program, Target Area Loan Program, and Ohio Heroes Program.

In addition, you must either:

  • Complete a free homebuyer education course offered by any HUD-approved housing counseling agency, or
  • Use the streamlined OHFA homebuyer education program.
 

Ohio Heroes Program

Ohioans working in critical professions can take advantage of a special first-time homebuyer program with a lower interest rate. Ohio heroes make a difference in our lives by working hard in critical jobs every day. OHFA is proud to offer all the benefits of our First-Time Homebuyer Program to Ohio’s heroes at a .25% lower interest rate.

Do I Qualify?

The Ohio Heroes Program is available to the following full-time employees who are:

  • Active Military, Active Reserve, or a Veteran – Qualified Active Duty Service personnel include Armed Services or Reserve Forces. Qualified veterans include military members honorably discharged from any branch of the U.S. Armed Forces.
  • Firefighters, Emergency Medical Technicians or Paramedics – Sworn paid members of a fire department whose regular duties include fire suppression or prevention, emergency medical response, hazardous materials response.
  • Health Care Workers – Certified, accredited, or licensed health care workers who are employed full-time as a medical resident or fellow, dental hygienist, nurse, nursing assistant, pharmacist, pharmacy technician, physician’s assistant, medical technician, technologist, or therapist.
  • Police Officers – Individuals commissioned as a police officer by a federal, state, county, or municipal or township government, or a public or private college or university; must be sworn to uphold, and make arrests for violations of federal, state, county, municipal, or township law or respond to terrorism.
  • Teachers – Individuals employed full-time by an accredited or state recognized public school, private school, or federal, state, county, or municipal educational agency as a state-certified classroom teacher or administrator in grades K-12 or higher education.

 

Applicants for the Ohio Heroes Program must:

  • Meet OHFA’s income and purchase price limits. 
  • Be a first-time homebuyer—someone who has not owned or had an ownership interest in his/her principal residence in the last three years. Not a first-time homebuyer?
  • Be creditworthy. Minimum credit scores may apply.
  • Have a signed Purchase and Sales Agreement.
  • Qualify for the loan being requested. Lenders will assess your ability to afford a home by considering income, assets, job stability, liabilities, and other criteria.

Grants for Grads Program

Recent college graduates, including those earning a postgraduate degree, may be eligible to receive 2.5% of their home’s purchase price to help pay for down payment and closing costs when you apply within 18 months of earning your degree.

Recent college graduates, including those earning postgraduate degrees, can now receive down payment and closing cost assistance and a favorable mortgage interest rate from an OHFA participating lender through the Grants for Grads Program. Eligible borrowers can use the grant to reduce the out-of-pocket expenses associated with buying a home.

If you are an income-eligible first-time homebuyer, graduated from an Ohio high school and have earned an associate, bachelor’s, master’s, doctorate or other postgraduate degree within the last 18 months, you can take advantage of the Grants for Grads Program.

  • OHFA will issue a grant in an amount for 2.5% of your home’s purchase price.
  • You can use the grant to pay for the down payment, closing costs, or other prepaid expenses incurred prior to closing. Keep in mind that while the grant will help cover some of your up-front costs, you may still be required to contribute some money as well.
  • The grant will be issued as a second mortgage with a 0% interest rate with no payment due. The loan is forgivable after five years. However, if you move out of Ohio prior to the five-year mark, you are responsible for paying a portion of the grant back to OHFA as indicated below: 

        

Months resided in home Amount of grant owed to OHFA if you move out of state
Less than 12 months 100%
12 months to 24 months 80%
24 months to 36 months 60%
36 months to 48 months 40%
48 months to 60 months20% 20%

Do I Qualify?

To qualify for the Grants for Grads Program, you must:

  • Be a first-time homebuyer
  • Meet specific income guidelines
  • Have graduated from an Ohio high school
  • Apply for the grant within 18 months of graduating from an educational
    institute recognized by the Ohio Board of Regents
  • Obtain a mortgage through an OHFA participating lender

In addition, you must either:

  • Complete a free homebuyer education course offered by any housing counseling agency approved by the U.S. Department of Housing and Urban Development, or
  • Use the streamlined OHFA homebuyer education program.

Target Areas Program

Any qualified buyer purchasing a home in a federally-designated target area can benefit from this competitive loan program. OHFA’s Target Area Loan Program helps revitalize federally-designated target areas by making our affordable first-time homebuyer loan products and competitive interest rates available to ANY qualifying buyer purchasing a home in these areas.

What is a Target Area?

A target area is an economically distressed area designated by the U.S. Department of Housing and Urban Development (HUD). Most Ohio counties contain both target and non-target areas.

Do I Qualify?

Target Area Loan applicants do not have to be first-time buyers. However, the following program requirements apply.

To qualify for an OHFA Target Area Loan, you must:

  • Meet OHFA’s income and purchase price limits. Please note that income and purchase price limits may be higher for Target Area Loans.
  • Be creditworthy. Minimum credit scores may apply.
  • Have a signed Purchase and Sales Agreement.
  • Qualify for the loan being requested. Lenders will assess your ability to afford a home by considering income, assets, job stability, liabilities, and other criteria.

Additional property requirements:

  • Loans are available for properties up to two acres (unless additional acreage is required by local health or safety code).
  • Qualifying properties include:
    • Existing homes: one-unit single-family dwelling and duplexes up to four units
    • Spec/Nearly completed homes: one-unit single-family dwellings
    • Modular/Manufactured homes: one-unit single-family dwellings

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