Cuyahoga County Down Payment Assistance and First-Time Homebuyer Programs

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.

Are you looking to buy a home in Cuyahoga County? On this page, we’ll break down home buyer programs that will help you become a home buyer.

Down payment assistance programs in Cuyahoga County

Down payment assistance and first time home buyer programs aim to help home buyers make a larger down payment, cover closing costs, or a combination of both. There are several types of home buyer benefits, including grants, forgivable loans, and interest rate reductions and tax credits.

A grant is similar to a scholarship for college. You apply, and if you qualify for the program (i.e. meet all the criteria and the entity still has the money), you can receive funds toward your down payment or for another upfront cost related to your home purchase. 

A down payment loan (or second mortgage loan) is a loan you acquire in order to have the funds for a down payment. Many loan types require a minimum down payment between 3% and 20%. If you don’t have this money saved (many first-time home buyers don’t) then a down payment loan is an option to help you qualify. Some loans are even forgivable if you meet certain requirements like staying in the home for a few years.

Less commonly, some programs come with lower interest rates and tax credits (e.g., mortgage credit certificates) to help lower your monthly payments.

Cuyahoga County Down Payment Assistance Program

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%.

Statewide down payment assistance programs available in Cuyahoga County

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.

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.