When buying a home in Ohio, you need to consider your down payment and whether you can afford it. Down payments are one of the biggest challenges for homebuyers. Luckily, there are some excellent programs in Ohio that provide loans or grants to help cover down payments, closing costs, and other pre-closing expenses.
If you’re struggling to buy a home in Ohio, looking into one of these down payment assistance programs can help you become a homeowner rather than a renter.
If you’re undecided about whether to use one of these programs, understanding the benefits can help you make a decision:
They make buying a home more accessible by assisting with upfront costs.
They can reduce your monthly payment.
They offer potential tax benefits.
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With our personalized mortgage solutions, a streamlined application process, and our guidance, we’ll help you secure competitive loan terms and lower fees.
The Ohio Housing Finance Agency (OHFA) and other government entities offer assistance programs for homebuyers. Here are a few popular options.
YouChoice! is one of the most popular programs in Ohio. This OHFA homebuyer program offers buyers 2.5% or 5% of the home’s buying price.
They offer a 30-year fixed-rate conventional, VA, or FHA loan with generous income and purchase price limits. The down payment assistance loan is forgiven after seven years as long as you make regular payments. However, it must be repaid if you sell the home within seven years
Ohio Heroes is another excellent program. Firefighters, law enforcement, healthcare workers, teachers, and military personnel can qualify if they meet all the eligibility requirements.
You must meet credit score requirements of 640 or higher, debt-to-income (DTI) ratio, and income and purchase price limits.
This program is designed to attract and retain recent college graduates to Ohio, but you must have graduated from an accredited university in Ohio within the last 48 months.
Grants for Grads provide 2.5% to 5% payment assistance. Graduates make payments for five years, after which the down payment assistance loan is forgiven as long as graduates live in Ohio during those five years.
The following programs are location-specific:
GCL in Cleveland, Ohio, provides up to $20,000 in down payment assistance. The program requires the borrower to work for a qualified employer in Cleveland and contribute at least 3% of their own money to help with the cost.
The ADDI program helps buyers in Cincinnati with up to $14,000 in down payment assistance. It’s targeted to first-time buyers with low to moderate income. It’s a five-year non-interest loan, making buying and owning a house more accessible.
Each program has specific eligibility criteria. Most programs look at first-time homebuyer status, the condition of the property, and income levels.
They tend to target low- and moderate-income buyers. Specific programs with more detailed requirements exist for first responders, educators, and veterans.
If you want to take advantage of assistance programs in Ohio, give yourself the best chance to qualify by taking the following actions:
Before applying for a home mortgage, regardless of the loan type, consider doing the following:
Improve on or keep your good credit score.
Save for additional costs.
Get pre-qualified by lenders.
Gather and organize all necessary documentation.
You can buy a house in Ohio with no money down as long as you utilize specific programs from the VA or a down payment assistance program.
You can get anywhere from a few thousand dollars to over $30,000.
It can be a loan or a grant. Some programs’ loans are either paid back or forgiven over a certain period of time, while grants require no payback.
Yes, many, if not all, of the programs have income limits. The programs are designed to help those who can only afford to buy a home with additional funding.
Yes. Most programs are designed to assist first-time homebuyers but also include other buyers.
The best program for you will depend on your situation. YourChoice!, Grant for Grads, and Ohio Heroes are the most popular.
The assistance you can get in Ohio depends on the program. It’s usually no more than a certain percentage of the home’s buying price.
Requirements vary depending on the program, but the general criteria for determining eligibility are income, location, property type, and first-time homebuyer status.
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The main assistance program is the MyHome Assistance Program from the California Housing Finance Authority (CalHFA), offering up to 3% of the home’s purchase price.
The Texas Department of Housing and Community Affairs (TDHCA) offers the My Choice Texas Home program, offering a 30-year, low-interest-rate mortgage and up to 5% for down payment and closing assistance.
Several Florida programs, including the Florida Assist Second Mortgage Program, offer up to $10,000 upfront costs.
Colorado has several programs, including the Colorado Housing and Finance Authority (CHFA) program. They also assist first-time homebuyers with closing costs.
The South Carolina State Housing Finance and Development Authority (SC Housing) offers a single down payment assistance program for borrowers with low to moderate incomes.
The Michigan State Housing Development Authority (MSHDA) offers the MI Home Loan Program, providing up to $10,000 for first-time homebuyers.
Virginia’s Homeownership Down Payment Assistance Program (DPA) is state-wide, helping residents with down payments and closing costs. Homeowners may receive up to 15% of the sales price and an additional $2,500 to cover closing costs.
Residents in Pennsylvania can utilize the Keystone Advantage Assistance Loan Program. This payment assistance program is sponsored by the Pennsylvania Housing Finance Agency (PHFA) and provides up to 4% of the purchase price or $6,000, whichever is less.
Georgia offers residents the Georgia Dream Homeownership Program from the Georgia Department of Community Affairs (DCA). This program offers first-time and other eligible buyers five percent or $10,000, whichever is less, in down payment assistance.
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