Ohio first-time home buyers get a grant to help them obtain their first property. Aside from one-on-one counseling, and home buyer education, you could also enjoy some great cash assistance to afford your first home. The average home sales price in Ohio is $257,490 as of April 2022, so getting that grant greatly impacts buying a decent home.
Housing grants are programs created by the government to help low-income families find shelter. Each state has its own grant programs. Here's everything you need to know about the first-time home buyer grant Ohio.
How First-Time Home Buyer Grant Ohio Works
The Ohio Housing Finance Agency (OHFA) offers a first-time homebuyer program to help first-time homebuyers purchase a home in Ohio. The OHFA program offers a 3.5% grant for the down payment and closing costs. The grant is available to first-time homebuyers who meet certain income and purchase price limits and have not owned a home in the past three years.
The grant can be used for single-family homes, condominiums, and manufactured homes. It can also be used in conjunction with other OHFA programs, such as the Homebuyer Tax Credit. The maximum grant amount is $5,000.
The OHFA first-time homebuyer program has helped over 17,000 Ohioans purchase houses since its inception in 2009.
First-Time Home Buyer Programs In Ohio
Here are some of the first-time home buyer programs in Ohio:
My Ohio Home
My Ohio Home has several programs that help with conventional mortgages, USDA, FHA, and VA loans.
- Ohio Heroes – This is eligible for public servants like educators, medical professionals, law enforcement, and firefighters. It's a conventional and government-backed loan that can be paired with the DPA program.
- Mortgage Tax Credit – This program provides up to 40% credit for home mortgage interest. It has two varieties: Plus and Basic.
- OHFA Homebuyer Program – This gives fixed-rate mortgages good for 30 years to low-income and moderate-income borrowers
- Next Home Program – This program is available even for non-first-time home buyers and gives them 30-year, fixed-rate loans. Next Home Program can also be paired with selected DPA programs.
Communities First Ohio
This program is administered by the Port of Greater Cincinnati Development Authority. They offer mortgages to all Ohio first-time home buyers. Here's how to qualify:
- FICO score of 640 or higher
- Meet income limits which are determined per county
- Has a debt-to-income ratio of less than 45%
- Has an approved lender
- The property applied must be the borrower's primary residence
- Hasn't owned a primary residence in the last three years (first-time home buyer)
Communities First Ohio gives grants and down payment assistance of up to 5% of the home purchase price.
First-Time Home Buyer Grants In Ohio
If you need further financial assistance, you can also check these first-time home buyer grants in Ohio:
Your Choice! DPA
In this program, you can get either 2.5% or 5% down payment assistance, which is considered a forgivable loan after seven years. This means that the DPA is forgiven f you stay at the house until the seventh year. However, if you move, refinance, transfer the mortgage, or sell the house before the end of the seven years, you must repay the assistance amount.
Grants For Grads
Recent graduates can get discounted mortgage interest through this program. You can get a 2.5% or 5% down payment and closing cost assistance. The amount is forgiven after five years as long as you stay on the property. Like the previous program, selling or moving out of the house will make you liable to repay the full assisted amount.
To be eligible, you must be a recent graduate of an associate's, bachelor's, master's, or doctorate degree in the last 48 months. You must also be from an accredited university or college. Aside from the DPA, the OHFA will also give you a free homebuyer education.
Communities First DPA
Communities First DPA is a grant that gives you a 3%, 4%, or 5% discount on your home's purchase price. There are no minimum years of stay requirements like the previous two, and you don't have to repay the funds. To quality, just send a letter to the OHFA. However, they'd look at the borrower's income — not the entire household's.
Move Into Your First Home In Ohio Today!
The state of Ohio makes it easy for first-time homebuyers to own a home. Whether you have just graduated from college or been renting for quite some time, the programs above are designed to help you move to your new home.
Write a letter to the OHFA or check their website to see if you qualify. Everyone deserves to have their own home, and with Ohio's programs, this will be a reality. Take advantage of this opportunity today.
Venturing into homeownership is a remarkable milestone. While you explore the grants available in Ohio, it's beneficial to compare opportunities across state lines. Dive into our latest post on first-time homebuyer grants in Illinois to broaden your understanding and perhaps find a more fitting aid for your home buying journey. Your pathway to a new home might just cross state borders!
If you’re a senior citizen looking for grants, check out these free housing and apartment grants for low-income seniors.