Grants and Assistance For Ohio's First-Time Homebuyers

Jan 31, 2023 By Triston Martin

If you are a first-time homeowner in Ohio, you may be eligible for one of many state-level grant or loan programs. The down payment is often waived, and the lending standards are more lenient under these schemes. If you have a moderate income, have recently graduated from college, or have served in the armed forces, among other things, you may qualify for unique benefits.

Programs For New Homeowners in the State of Ohio

If you haven't owned a primary property in the last three years, you may qualify for a first-time homebuyer program. You may be eligible for a lower interest rate or help with up-front fees for your loan if you have a specific job.

First-time homebuyer assistance in Ohio is primarily administered through the Ohio Housing Finance Agency. Several local governments in the state of Ohio also provide homebuyer rebates and other benefits.

American Dream Downpayment Initiative, Columbus

American Dream Downpayment Initiative provides low- and middle-income homebuyers in Columbus, Ohio, with access to second mortgages for down payments and associated fees. This loan, worth up to 6% of the purchase price, can be delayed and forgiven after five years.

Grants for First-Time Homebuyers in Cuyahoga County

The prospective buyer's annual income must be less than 80% of the median income in the area. Eligible buyers can receive a loan for up to 10% of the purchase price.

The maximum amount that can be spent on a house is $166,000. The borrower must put down at least 3% of the purchase price to qualify for this deferred second mortgage.

Get Help Making a Down Payment in Dayton

The HomeOwnership Center provides a down payment assistance loan in conjunction with the City of Dayton and the surrounding communities. Buyers with eligible incomes can receive assistance ranging from 10% to 20% of the home's purchase price, depending on the specific program.

There are a variety of methods for granting forgiveness. In the Greater Dayton area, the Aloft Dayton and Inclusive Community Fund offer either partial or complete loan forgiveness after five years of ownership.

Money for First-Time Homebuyers in Ohio

The down payment and initial loan balance might be reduced thanks to a home purchase grant, often awarded as a lump sum. The loan's compensation is usually forgiven, though you may be required to have been a homeowner for a certain period before you can avoid paying a prepayment penalty. The following are some potential funding opportunities:

Graduation Aid Funds

Eligible first-time homebuyers can get lower mortgage rates and 2.5% or 5% down payment help through the OHFA Grants for Graduates program. Please keep in mind that down payment help is a requirement for this program. After the first five years, the real benefit of the down payment is waived. If you sell your house or leave the state of Ohio within the grant's five-year duration, you must repay the award in whole or part.

Communities Come First

Communities First provides a grant of 3%-5% of the buying price of a property to first-time buyers as a down payment aid. In contrast to other programs, the Port of Greater Cincinnati Development Authority's Homebuyer Assistance Program is open to prospective homeowners throughout the whole state of Ohio, not only in the Greater Cincinnati area.

Ohio Home Buying Guide

Here are some actions you can take to buy your first home in Ohio and perhaps benefit from first-time homebuyer programs at the state and local levels:

Verify Your Eligibility

There is often a 640 credit score threshold for participation in first-time homebuyer programs in Ohio, and various loan types have maximum debt-to-income ratio requirements. It's important to note that income and spending caps vary by county.

Submit Financial Documentation.

You'll need to show documentation that you're a first-time homebuyer and your tax returns and financial records.

Find Financing

It can be simpler to apply for assistance if you work with a lender already part of the program you want to use. If the seller accepts your offer, your lender will handle all the paperwork required to close the deal.

Take A Homebuyer Class

Before closing, participants in the assistance programs must complete a HUD-approved first-time homebuyer education course. Alternatively, you might check out an online system provided by a nonprofit organization like OHFA.

Finalize The Paperwork

After the underwriting procedure is complete at the lending institution, you will sign the closing documents and officially become the property's owner.

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