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The Ohio Housing Finance Agency has helped thousands
of low- and moderate-income Ohioans realize their dreams of owning
a home through its First-Time Homebuyer Program. This program makes
purchasing a home more affordable for qualifying homebuyers by offering
30-year, fixed-rate mortgage loans at a competitive interest rate.
OHFA's current program offers a two-tiered interest rate structure
providing borrowers the flexibility of choosing a mortgage rate
that best fits their needs. Homebuyers not needing assistance with
their down payment and closing costs can take advantage of OHFA's
available mortgage rate. For homebuyers who have the need, down
payment and closing cost assistance is available with a slightly
higher mortgage rate.
OHFA's mortgage funds are available on a continuous
basis year-round. Mortgages are originated through a network of
participating lenders with more than 400 offices statewide.
OHFA offers a variety of home loan options designed to meet the
needs of Ohio's homebuyers. Products in the First-Time Homebuyer
Program include the traditional FHA/VA/USDA Rural Development loans;
and a Fannie Mae conventional loan product, My Ohio Mortgage,
that offers special features and more flexible terms to help homebuyers
purchase a home.
- Minimum homebuyer out of pocket
- Fixed interest rate
- 1 percent origination; zero discount points
- Loan-to-value up to 100 percent
- Less than perfect credit histories and nontraditional credit
accepted
- Section 8 homeownership vouchers accepted as income
- Community Solutions™ option with additional flexibility
for teachers, police officers, firefighters and health care workers
In addition, OHFA also offers down payment and closing cost assistance
to eligible borrowers, which can greatly reduce their out-of-pocket
expense. Homebuyers can choose between a down payment assistance
grant in an amount equal to 3% of the home's purchase price, or
a second mortgage in an amount up to 4% of the purchase price of
the home secured by the first mortgage single family bond loan.
The 4% down payment assistance program is a second
mortgage with a 20-year term. The interest rate for the second mortgage
will be up to 2% higher than the related OHFA first mortgage. For
example, 5% first mortgage and 7% second mortgage. The 4% second
mortgage down payment assistance may only be used with an OHFA First-Time
Homebuyer Program first mortgage.
The program is available to first-time homebuyers (persons not owning
or occupying their principal residence in the last three years),
or anyone purchasing a home in a targeted area.
A
targeted area is defined as an economically distressed area as designated
by the U.S. Department of Housing and Urban Development. Most counties
contain both target and nontarget areas which may be defined by
examples such as census tracts, street, township, village or other
designation. Ohio's targeted
areas are available for downloading. They are in Adobe PDF file
format and must be viewed with Adobe Reader. If you do not have
Adobe Reader, a free version can be downloaded from Adobe's
web site.
Homebuyers must also meet established income limits
and home sales price limits. Maximum sales prices vary according
to whether a home is new or existing, or if it is in a target or
nontarget area. To view the income limits and sales price limits
applicable to your county, go to County
Information.
Note: The sales price limits on the county pages
are for 1-family residences only. If you are considering the purchase
of a 2-unit (duplex), 3-unit or 4-unit home, you may qualify for
the program as long as it is an existing home, does not exceed the
maximum sales price listed, and will be your principal residence.
The sales price limits below include prices for 1-family to 4-family
residences.
Click on the name of the
file to download a complete listing of income limits or sales price
limits in Adobe PDF file format.
If you meet the eligibility criteria as defined above, you can begin
the application process. OHFA does not offer loans directly to homebuyers.
Instead, homebuyers apply for and receive mortgage loans through
a network of participating lenders covering all 88 counties in the
state. To locate participating lenders in your area, go to County
Information.
In order for the lender to process your application for a housing
loan, you will need:
- A signed purchase contract
- Signed and dated copies of your federal income
tax returns. All applicants for the loan must provide copies for
the past three years.
- Recent pay stub
- The names, addresses, contact persons and telephone
numbers of your employer(s)
- Savings and checking account information including
names and addresses of institutions and account numbers
- Creditor information including names and addresses
of creditors, account numbers and balances
- Landlord information including names, addresses
and dates of rental
The lender may also require that you pay an application
fee at the time of application. The First-Time Homebuyer Checklist will help you prepare to meet your lender.
Your lender and real estate agent can guide you through the homebuying
process and should be able to answer any questions you may have
regarding the program. If you need additional information, call
the Office of Homeownership at (614) 466-3821.
You may also want to visit
Homepath, a site sponsored by Fannie Mae that provides helpful
information on the homebuying process. The site offers a number
of useful tools including calculators
to help you evaluate the components that factor into buying a home
and getting a mortgage.
Note: The recapture tax provision applies
to all loans in this program. View this IRS link for an explanation on recapture of federal subsidy.
LOANS ARE AVAILABLE ON A FIRST-COME,
FIRST-SERVED BASIS
 The Ohio Housing Finance Agency is an Equal Opportunity Housing entity. Loans are available on a fair and equal basis regardless of race, color, religion, sex, familial status, national origin, military status,
disability or ancestry.
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