First time home buyer Ohio residents have a variety of incentives, programs, and grants available as options to potentially help lower costs associated with buying a home in Ohio. Movoto provides access to thousands of Ohio homes currently for sale to help you locate an ideal first home in Ohio.
Learn about the options available to help you and your family realize your dream of homeownership when you discover options to ease the costs associated with purchasing your first home.
Is everyone eligible for first time home buyer Ohio incentives, grants and programs?
Whether you are eligible for a particular incentive, program or grant to purchase your first home in Ohio depends on a number of factors. Some programs require that you have a minimum credit score while others offer assistance to help raise your credit score. Some programs are specifically designated for first time buyer Ohio residents in a low-to moderate-income range. Still others, offer assistance to those employed in certain professions.
To save time and avoid let-down, read all requirements of each program carefully before you apply. The more you know about each of the Ohio programs, incentives and grants available to first time home buyers in Ohio, the quicker you and your family can realize the “American Dream” of owning your first home.
Do I have to live in a certain area of Ohio?
Some of the incentives and programs available to first time home buyers in Ohio require that you live in a targeted area. That target area may require that you live within city limits, such as the City of Columbus American Dream Downpayment Initiative (ADDI) Program. The City of Columbus site explains that the ADDI is a “Five-year deferred forgivable loan” and that residents must live in the home for five years after closing on the home in addition to being a first time home buyer.
Other programs and incentives exist for first time home buyers in Franklin County Ohio that only require living in the county. So if you prefer living outside the largest city in Ohio, perhaps in Westerville, for instance, you may find the Franklin County Down Payment Assistance Program ideal for you.
Another program with certain area requirements is the Target Area Loan Product. This requires first time home buyer Ohio residents to live in a designated target area. In Ohio, there are two types of target areas, the Qualified Census Tract, based on household income data, according to the Ohio Housing Finance Agency, and Areas of Chronic Economic Distress.
Which first time home buyer assistance is right for me?
The fact that each program or other type of assistance available to first time home buyers in Ohio has its own list of guidelines and requirements means that you must review all the details and requirements before applying. The Ohio Housing Finance Agency administers options to help Ohioans realize the dream of home ownership.
Under the Ohio First-Time Homebuyer Program, the OHFA indicates that the agency “Offers several affordable loan options to help you achieve your dream of homeownership. OHFA offers 30-year fixed rate FHA, VA, USDA-RD, and conventional mortgage loans designed especially for homebuyers with low-and moderate-incomes, with generous income and purchase price limits.” As a first time homebuyer Ohio resident you can choose to add one or more of the available options to your VA, FHA, and conventional or other mortgage loan.
The Ohio Grants for Grads program offers an outstanding incentive for recent college graduates to make Ohio their home. If you graduate with at least an associate’s degree, you may learn that you meet other requirements. You can receive either 2.5 percent or 5 percent down payment assistance on your first home if you meet other requirements. So whether you desire to reside in Toledo, Dayton, or smaller areas such as Wilmington, taking advantage of this incentive can help you purchase your first home.
Under Ohio’s Your Choice! Down Payment Assistance Program, If you qualify for the Ohio Down Payment Assistance Program, you have your choice of applying your 2.5 percent or 5 percent of the home’s purchase price towards the down payment, the closing costs, or other pre-closing expenses. Live in Oxford, Kettering or wherever you choose to live as a first time home buyer in Ohio.
The Mortgage Tax Credit provides you with the opportunity to combine their First-Time Homebuyer Loan with the Mortgage Tax Credit. The Mortgage Tax Credit “Provides homebuyers with a direct federal tax credit on a portion of the mortgage interest,” lowering your tax liability by up to 40 percent.
Ohio Heroes rewards individuals living in Ohio and serving the public with a discounted mortgage interest rate. According to OHFA, you are an “Ohio Hero” if you are:
- Active duty U.S. Military member, U.S. Military Veteran, or member of reserve forces
- Police or corrections officer
- Paramedic, firefighter, or emergency medical technician (EMT)
- College professor teaching at least 12 credit hours per quarter or semester
- K-12 teacher or administrator
If you include down payment assistance with your Ohio Heroes Loan, the down payment assistance is forgiven after seven years, provided you do not sell or refinance your home within the seven years. If you do, you have to repay the down payment assistance. Perhaps you are an Ohio Hero who finds New Albany or Akron the ideal place to buy your new home.
Checking with the OHFA or directly with programs specific to a particular county or city offering incentives, programs, or grants to first time homebuyers in Ohio can help you get started towards owning your first home. Whether you are a recent grad, member of the military, or have just always rented, Ohio provides a variety of options to assist you with becoming an Ohio homeowner.
2 Point Highlight
The more you know about each of the Ohio programs, incentives and grants available to first time home buyers in Ohio, the quicker you and your family can realize the “American Dream” of owning your first home.
Ohio Heroes rewards individuals living in Ohio and serving the public with a discounted mortgage interest rate.
