OHFA Homebuyer Program

The Ohio Housing Finance Agency works with lender institutions to offer thirty-year fixed-rate mortgage options for first-time home buyers in Ohio who satisfy the following prerequisites:

• Fulfilling the earnings and acquisition cost constraints of the program, which vary by county & household size.
• Fulfilling the debt-to-income proportion is a necessity (which varies and is determined by the type of loan).
• You must have a credit score of 640 or higher for a conventional,USDA, or VA loan or equal to or greater than 650 for an FHA loan.
• You must obtain a single- to four-family abode, condominium, modular home, or manufactured home
• Are procuring property situated on 2 acres or less, or 5 acres or less if in a rural area.
• Additionally, all borrowers seeking an OHFA loan need to complete a free homebuyer education course.

Such 1st time home buyer programs in Ohio can be used with a conventional or government-insured/guaranteed (FHA, VA, or USDA) loan.

OHFA YourChoice! Down Payment Assistance

The YourChoice complements Ohio's low-cost loan program for aspiring homeowners! Down Payment Assistance initiative administered by the state housing finance agency. This forward-thinking funding option furnishes eligible buyers with 2.5 to 5 percent of the property's purchase price as down payment assistance in Ohio that requires no repayment. It can also be utilized to cover closing costs. The sole stipulation is that the recipient must not resell or refinance for seven years.

Prospective borrowers must satisfy the following criteria to qualify for YourChoice! down payment assistance in Ohio:

• If you are pursuing a traditional, VA, or USDA mortgage, you must obtain a minimum credit score of 640 on your report. Those opting for an FHA loan must have a middle credit rating of at least 650; a higher score will be an advantage.
• Maintain manageable debt-to-income ratios consistent with your chosen loan vehicle.
• Meet OHFA home purchase price and income caps set annually.
• Complete a mandatory homebuyer education course to cultivate informed decision-making.

OHFA Grants for Grads

OHFA's Grants for Grads program generously assists recent college graduates whose student loan debt makes saving for a home purchase extremely difficult. Accessible to first-time home buyers in Ohio who have earned an associate's, bachelor's, master's, doctoral, or other postgraduate qualification within the previous four years, the program delivers mortgages at reduced interest rates along with down payment assistance in Ohio amounting to 2.5 to 5 percent of the home’s purchase cost. Recipients do not need to refund the down payment assistance provided they remain living in the state of Ohio for no less than 5 years.

Borrower prerequisites:

• Must have a credit rating of 640 or more for conventional, VA, or USDA loans; a credit score of equal to or more than 650 for FHA loans is required.
• Annual earnings and acquisition price for the property must meet OHFA constraints.
• The debt-to-income proportion for the chosen loan type must be satisfied.
• Graduated with an approved degree within the last four years.

OHFA Ohio Heroes program

You may take advantage of this program if you qualify, depending on occupation or creditworthiness. This program offers discounted mortgage rates to first-time and repeat home buyers in Ohio. The prospective home buyers must be in eligible professions, such as emergency responders, medical workers, educators from preschool to high school, military personnel, both active and reserve, and surviving spouses of veterans. To get this down payment grant in Ohio, one must fulfill the following criteria:

• Credit ratings require a minimum of 640 for conventional, VA, or USDA loans or 650 for FHA.
• Income and purchase price must fall under OHFA limits. Debt relative to income (DTI)must satisfy restrictions for your loan type.
• Finally, completion of a homebuyer education program is necessary.

The benefits apply whether it's a first home or a subsequent property, making affordable housing attainable for Ohioans serving their state and communities.

Mortgage Tax Credit

After choosing the 1st time home buyer programs in Ohio, the Ohio Housing Finance Agency's Mortgage Tax Credit program can assist when filing taxes. The Internal Revenue Service already permits deducting some mortgage interest, and this program can further lessen tax bills. Two options offer differing benefits:

• Mortgage Tax Credit Plus: The Mortgage Tax Credit Plus allows obtaining an OHFA first-time homebuyer loan to qualify for a 40% tax credit on mortgage interest, up to a maximum of $2000.
• Mortgage Tax Credit Basic: Alternatively, the Mortgage Tax Credit Basic can still be applied for without an OHFA loan. The credit will be smaller, though 30% of interest for a bank property, 25% in a target area, and 20% for all others.

Local homebuyer assistance programs

Depending on your location of pursuit, you may be able to obtain regionally-managed financial assistance. For instance, Cuyahoga County, which envelops the city of Cleveland, presents down payment aid amounting to as much as 10% of the purchase price for those with lower to moderate earnings who are making their first acquisition. The city of Toledo poses a similar plan with down payment finances extending up to $7,500 or perhaps $9,500, subject to the section of the city in which one envisions making their residence.

FHA Loans

FHA loans can be an excellent fit for first-time purchasers with fair or less-than-stellar credit histories. With a credit rating of 580, you could be approved to contribute as little as 3.5% of the acquisition cost, and with a score ranging from 500 to 579, a 10% downpayment may suffice.

VA Loans

VA loans are an invaluable advantage for military members, veterans, and qualified spouses. No down payment is demanded, and lenders often accept lower credit ratings while providing some of the most competitive interest rates on the market.

USDA Loans

Rural Development loans administered by the United States Department of Agriculture can expand homeownership opportunities for those seeking a residence outside major metro regions. Should your intended property be in an area accepting USDA financing, down payments are unnecessary, though a credit score north of 640 is usually expected.