First-time homebuyer programs and grants in Ohio
Senior Content Writer
Quick insights
- Ohio first-time homebuyer programs include OHFA Down Payment Assistance, Ohio Heroes, Grants for Grads and the Mortgage Tax Credit.
- Depending on the program, eligible homebuyers may receive down payment assistance equal to around 3% of the purchase price.
- Eligibility may depend on credit, income, purchase-price limits, mortgage requirements and completion of approved homebuyer education.
When you buy your first home in Ohio, saving for a down payment and closing costs is an important first step. Fortunately, Ohio offers specific programs and grants for first-time homebuyers. If you qualify, these resources may help you cover those upfront expenses. They might also allow you to find a mortgage that fits your financial situation.
Ohio offers a range of communities and home style, and if you qualify for a mortgage and any applicable assistance programs, an Ohio home could be yours soon.
Ohio first-time homebuyer programs
The Ohio Housing Finance Agency (OHFA) works with approved mortgage lenders to offer 30-year, fixed-rate conventional, FHA, VAand USDA loans. Homebuyers must meet the requirements for their selected mortgage and OHFA program.
Chase does not offer USDA loans.
OHFA First-Time Homebuyer Program
OHFA’s First-Time Homebuyer Program provides mortgage options for eligible buyers who have not owned a primary residence within the previous three years. Certain veterans and buyers purchasing in designated target areas may qualify for an exception to this requirement. Applicants must:
- Have a credit score of at least 640 for a conventional, VA or USDA loan or 650 for an FHA loan.
- Meet income and purchase price limits for the county.
- Satisfy the debt-to-income (DTI) requirements for the selected mortgage.
- Complete approved homebuyer education.
- Apply through an OHFA-approved lender.
OHFA Down Payment Assistance
OHFA offers assistance that may be applied to a down payment, closing costs or other eligible expenses due before closing. Qualified homebuyers may receive:
- 3% of the home’s purchase price with a conventional loan.
- 3.5% of the home’s purchase price with an FHA, VA or USDA loan.
The assistance is provided through a second mortgage and may be forgiven after seven years if program requirements are met. Selling the home within that period usually requires the full assistance amount to be repaid.
Ohio Heroes
The Ohio Heroes program provides a discounted mortgage interest rate for eligible Ohio residents working in certain public-service professions. Qualifying groups may include:
- Veterans, active-duty military members and reservists.
- Police officers, firefighters, emergency medical technicians (EMTs) and paramedics.
- Doctors and qualifying nurses.
- Pre-K through 12th-grade teachers, administrators and counselors.
Ohio Heroes may also be paired with OHFA down payment assistance when the applicant qualifies for both options.
Grants for Grads
Grants for Grads is a program combining a discounted mortgage rate with down payment assistance for eligible recent graduates buying their first home in Ohio. Applicants generally must have received an eligible college or postgraduate degree within the previous 18 months. Assistance equals 3% of the purchase price for a conventional loan or 3.5% for an FHA, VA or USDA loan.
The assistance may be forgiven after five years if the homeowner continues living in Ohio. Moving out of the state before then may require some or all of the assistance money to be repaid.
Ohio Mortgage Tax Credit
The Ohio Mortgage Tax Credit may allow eligible buyers to claim a portion of their annual mortgage interest as a direct federal income tax credit. The credit may provide up to $2,000 in federal tax savings per year, subject to the homeowner’s qualifying mortgage interest and federal tax liability. The credit does not provide cash for a down payment or closing costs. Potential homebuyers should apply through a participating lender before closing.
Program availability and funding may change, so confirm current status with OHFA before applying. Consider speaking with a qualified tax professional about specific programs and your circumstances.
Regional and city programs in Ohio
Some Ohio cities and counties offer additional homebuyer assistance, but specific program funding and application availability are subject to change.
Columbus American Dream Downpayment Initiative (ADDI)
The ADDIOpens overlay may provide up to 6% of the purchase price of the home (maximum $14,999) toward eligible down payment and closing costs. Applicants must:
- Meet household income requirements.
- Contribute at least $500 of their own funds.
- Complete approved homebuyer education.
- Purchase and occupy an eligible home in Columbus.
Homebuyers receiving assistance must generally use the property as their primary residence for at least five years. Funding and final award amounts are subject to program approval and availability.
Cuyahoga County Down Payment Assistance
The Cuyahoga County and City of Parma programs may provide a deferred second loan equal to as much as 10% of the purchase price, up to $20,900. Funds may be used for eligible homebuying expenses, including closing costs. Buyers must meet income and other program requirements and purchase in an eligible participating community.
Toledo Home at Last
Toledo’s Home at Last program may provide eligible first-time homebuyers with up to $12,500, or as much as $20,000 when purchasing in a designated target neighborhood. Buyers typically must:
- Have household income at or below 80% of the area median income.
- Purchase a single-family home or condominium within Toledo.
- Complete counseling through a HUD-approved agency.
- Contribute at least $500, including the required inspection cost.
- Obtain a fixed-rate mortgage through a participating lender.
The assistance is provided as a grant at closing, subject to program approval and available funding.
Applying to Ohio first-time homebuyer programs
Ohio homebuyer programs have different rules. You should research your options before you make an offer on a house. These steps can help you prepare:
- Set a budget. Review your income, debts, credit score and savings to find a monthly payment you can afford.
- Calculate upfront costs. Estimate your down payment, closing costs and insurance. A homebuyer assistance calculator can help estimate expenses.
- Check location limits. Ohio program income and price limits vary by county or city.
- Understand the assistance types.
- Grant: Money you do not pay back if you follow the rules. For example, the Chase Homebuyer Grant is designed to promote homeownership within low- and moderate-income census tracts.
- Forgivable loan: Borrowed money you do not pay back if you stay in the home for a set time, like five to ten years.
- Deferred loan: You make no monthly payments now. You repay it when you sell, move or pay off your mortgage.
- Tax credit: Reduces the income tax you owe. You claim this on your yearly tax return.
- Find the right lender. Make sure your lender works with the specific Ohio first-time homebuyer program you want. Work with a home lending advisor in Ohio to complete program reservations and approvals before the mortgage closes.
- Take a homebuyer class. Many programs require you to complete an education course.
- Gather your documents. You’ll likely need pay stubs, tax returns, bank statements, ID and a list of your debts.
- Verify the property. Programs may limit the home's price, location, or condition.
- Confirm your approval. Get your program approved before you close on the home.
- Know the long-term rules. Ask if selling, moving or refinancing later will require you to repay the money.
In summary
Ohio first-time homebuyer programs may help eligible buyers manage a down payment, closing costs or other financial considerations involved in buying a home. Statewide options include OHFA mortgage financing, down payment assistance, Ohio Heroes, Grants for Grads and the Mortgage Tax Credit.
Local programs in Columbus, Cuyahoga County and Toledo may provide additional support based on where the home is located. Comparing eligibility rules, mortgage terms, assistance structures and possible repayment requirements is a good place to start.
Ohio Home Lending Advisors can help you identify mortgage options that align with your homebuying needs and longer-term finances.
