Ohio Down Payment Assistance and First-Time Homebuyer Programs

Often referred to as “The Buckeye State,” Ohio offers a diverse, dynamic, and rich historical background, being the birthplace of eight U.S. presidents. Its economy features sectors ranging from manufacturing to agriculture, healthcare, and education, with cities like Cleveland and Cincinnati serving as major industrial hubs in the state.

However, Ohio has a wide range of housing problems, from skyrocketing property costs and property taxes to a need for more housing in general. According to the Executive Director of the Coalition on Homelessness and Housing, Ohio has a deficit of 267,000 housing units, with over 68% of extremely low-income individuals paying more than 50% of their income on housing costs.

To address these concerns, the state’s policymakers look to implement several recommendations, including speeding up building permit applications, implementing indisputable local housing development decisions, and expanding financial assistance like downpayment and first-time homebuyer assistance programs to low-income Ohioans.

Looking for assistance in a specific part of Ohio?

This page offers a comprehensive summary of the assistance initiatives accessible to prospective homebuyers in Ohio, encompassing both statewide and local resources. For precise information regarding down payment assistance in your locality, refer to local resources here:

• Bowling Green
• Port
• Cuyahoga County
• Dayton
• Toledo

Down payment assistance in Ohio

The housing problem in Ohio is pervasive and only getting worse, according to state leaders. As such, there have been reports detailing how to fix the housing crisis; one such suggestion is financial assistance for first-time homebuyers. Stairs Financial provides information on these programs, enabling Ohioans to compare and choose the best-suited option.

Ohio Housing Finance Agency

The Ohio Housing Finance Agency (OHFA) offers comprehensive housing assistance to low and moderate-income homebuyers through the Down Payment Assistance, Ohio Heroes, and Next Home programs.

The YourChoice! Down Payment Assistance program offers 30-year, fixed-rate conventional FHA, VA, and USDA-RD government loans. Applicants can choose either 2.5% or 5% of the home’s purchase price, with assistance applicable toward down payments, closing costs, or other pre-closing expenses.

On the other hand, the Ohio Heroes program rewards Ohio residents who serve the public with a discounted mortgage interest rate. Eligible applicants include active military members and veterans, security and medical emergency workers, healthcare professionals, teachers, administrators, and counselors.

Finally, residents can also opt for OHFA’s Next Home program, which provides 30-year, fixed-rate mortgages to those who are not first-time homebuyers. Available loans include conventional FHA, VA, and USDA-RD government loans. Homebuyers can pair this program with 2.5% YourChoice! Down Payment Assistance.

Assistance type: Forgivable Loans

Sponsor: Ohio Housing Finance Agency

Eligibility requirements

• Interested applicants must meet income and purchase price limits
• Applicants must meet credit score requirements; typically, at least 640 for conventional, USDA, and VA loans, and 650 for FHA loans.
• Qualified buyers are required to complete free homebuyer education by any HUD-approved counseling agency.

Bowling Green Housing Program

Located just 20 miles southwest of Toledo, Bowling Green is a city steeped in history, a vibrant culture, and a welcoming community. The city has witnessed rapid growth and an influx in population driven by the discovery of oil and natural gas in the 19th century. However, the housing market’s competitive level doesn’t reflect the city’s dynamism, with a median sale price of $265K.

Many potential homebuyers in Bowling Green spend so much on rent that they can’t save enough for a down payment. To help residents, the City of Bowling Green offers income-eligible applicants Housing Programs that include down payment assistance. Bowling Green’s Housing Program assistance incorporates seven different housing programs, all funded by the city’s Housing Revolving Loan Fund (RLF)

Assistance type: First Mortgage Loans

Sponsor: Bowling Green’s Housing Revolving Loan Fund (RLF)

Eligibility requirements

• The program assists only very low-, low-, and moderate-income households in the City of Bowling Green.
• Interested applicants must meet income limits.
• The income limit is $46,000 for a 2-person household and $51,750 for three persons and more.

The Port Down Payment Assistance Program

The Port, located at the mouth of the Portage River, is known for its sportfishing, annual Walleye Festival, beautiful beaches, and a vibrant downtown area. The Port is crucial to Ohio’s connection to waterways and contributes to the state’s economy and culture. It also features initiatives to improve the standard of living for residents.

The Port’s Communities First Down Payment Assistance Program provides first mortgage financing and down payment or closing cost assistance to eligible homebuyers. The program emphasizes Ohio’s commitment to increasing homeownership for residents across the state, in this case, Port.

Assistance type: Grants

Sponsor: The Port

Assistance amount: Up to 5% in down payment assistance

Eligibility requirements

• To be eligible, individuals must apply through a participating lender and meet standard industry guidelines.
• Applicants must have a maximum debt-to-income ratio of 45%
• The program also requires a minimum FICO credit score of 640

Cuyahoga County Down Payment Assistance Program

Cuyahoga County is a significant urban county and the second-most populous county in the state. Located in the northeastern part of Ohio and named after the Cuyahoga River, the county features a diverse economy, cultural institutions, educational facilities, and a dynamic housing scene with various assistance initiatives.

Cuyahoga County’s Down Payment Assistance Program is one such initiative of the Neighborhood Housing Services aimed at helping first-time homebuyers with the upfront costs of purchasing a home. The assistance comes in the form of a deferred mortgage loan, 50 percent of which is forgiven after ten years of occupancy.

Assistance type: Forgivable loans

Sponsor: Neighborhood Housing Services of Greater Cleveland

Assistance amount: 17% of the total purchase price plus 5% of the purchase price for closing costs.

Purchase price limit: $129,000

Minimum borrower contribution: 3% of the total transaction

Eligibility requirements

• Applicants must be first-time homebuyers who have not owned a home in the past three years.
• The applicant’s annual household income cannot exceed the program’s income limits of $43,450 for a 2-person household and $48,900 for 3 persons or more.
• The housing debt-to-income ratio must not exceed 28%, and the overall DTI ratio must be no higher than 43%.

Dayton Downpayment Assistance Program

Dayton, known as “The Gem City,” is the sixth-most populous city in Ohio and is recognized for its rich aviation history and affordable economy. Dayton’s affordability extends to the housing scene, ranking among the nation’s top 10 for affordable homes. The housing market is also extremely competitive, with various assistance programs available.

The Dayton Down Payment Assistance Program is a partnership between the Home Ownership Center and the City of Dayton. This zero-interest, deferred second mortgage assistance requires no repayment unless the property undergoes sale, refinancing, ownership transfer, vacancy by the owner, or conversion into a rental or investment property.

Assistance type: Deferred Payment Loans

Sponsor: HomeOwnership Center and the City of Dayton

Assistance amount: 10% of the new home’s purchase price

Minimum borrower contribution: $500

Eligibility requirements

• Applicants must be first-time homebuyers with a total household income at or below 80% AMI.
• Applicants must also complete a pre-purchase appointment with a Homeownership Advisor and a required Homebuyer Class through the Homeownership Center of Greater Dayton.
• The program’s sponsors will conduct a mandatory local housing code inspection, and all identified structural problems will be taken care of prior to purchase.

Toledo Down Payment Assistance Program

The Glass City is the fourth-most populous city in Ohio and the county seat of Lucas County. The city’s position at the western end of Lake Erie has made it a major trade center for the Midwest, particularly its downtown area. Toledo also features a variety of affordable housing options and programs aimed at helping residents become homeowners.

The City of Toledo aids eligible first-time homebuyers in securing safe and affordable housing within the city through the Toledo Down Payment Assistance Program. This program offers aid for homebuyers with a maximum income limit of 80% of HUD’s area median income.

Assistance type: Deferred Payment Loans

Sponsor: City of Toledo

Assistance amount: $7,500 to use toward the purchase of a home and up to $9,500 in target neighborhoods.

Minimum borrower contribution: $500

Eligibility requirements

• Applicants must not have purchased or owned a home during the past three years.
• This assistance can be used for single-family or condominium homes only.
• Property must be located within the City of Toledo corporation limits.

Ohio down payment assistance program FAQs

Here are some of the most frequently asked questions from first-time Ohio homebuyers looking for down payment assistance.

Does Ohio have a first-time buyer program?

Yes, Ohio does offer first-time homebuyer programs, including OHFA’s state-wide Down Payment, Heroes, and Homebuyer assistance programs. Some Ohio cities and counties also offer homebuyer incentives to help local residents.

How to buy a house for the first time in Ohio?

Buying a house for the first time in Ohio involves some technical processes, most of which regard financials. Prospective homebuyers should set a budget by considering the purchase price, as well as additional costs like property taxes, insurance, and maintenance costs.

It’s also important to ensure you qualify for a mortgage by meeting credit score requirements and income caps for different locations. Always take advantage of the assistance of Ohio’s first-time homebuyer to make homeownership more affordable. Stairs Financial offers comprehensive information on these assistance programs to help applicants identify and choose the best options.

What is the minimum down payment in Ohio?

The minimum downpayment in Ohio for first-time homebuyers is 3% for conventional loans and about 3.5% for FHA loans. Other options like the VA and USDA loans can offer a zero down payment option.

Can you get Biden first-time home buyer assistance in Ohio?

The Biden first-time homebuyer assistance program remains a bill under consideration by the 2023-2024 Congress and has yet to be enacted into law. Nonetheless, national initiatives such as the Mortgage Relief Credit and Down Payment Assistance for First-Generation Homeowners will be accessible in Ohio upon implementation.

What type of Ohio first-time homebuyer assistance is available?

Most first-time homebuyer assistance programs in Ohio are structured as grants and forgivable loans that must be repaid unless specific forgiving criteria are met.

What is the Ohio first-time homebuyer income limit?

The income limit for down payment assistance for first-time homebuyers in Ohio is 80% of each city’s median income (AMI). However, this threshold might fluctuate; hence, you should always check the latest guidelines from the OHFA or through a participating lender.

What are some requirements for first-time home buyers in Ohio?

Some standard requirements for first-time homebuyers in Ohio include;

• Applicants should not have owned a home within a certain period, mainly about three years.
• A minimum credit score is required, typically 640 for FHA loans and 650 for other loan types.
• Applicant’s income must not exceed 80% of the current Area Median Income.

How do I qualify for Ohio’s first-time home buyer programs?

Aside from not owning a home in the last three years, the primary qualifying criterion for these programs is the financials of the deal. This includes the credit score, household income, and purchase price limit.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.