grants for grads FAQs 
View the answers to the most frequently asked questions about OHFA's Grants for Grads Program. You can also talk to your lender and/or real estate agent about this or any of OHFA's other homebuyer programs.
Still have questions? Just give the Office of Homeownership a call at 614.466.3821 or 1.888.362.6432, and they'll be happy to help.
How is the 2.5% grant calculated? Is there a minimum or maximum available amount?
Are there any fees involved if I use the Grants for Grads Program?
Can I still get the grant if I graduated from college in Ohio, but not high school?
Will I have to complete homebuyer education through OHFA, or can I go through my lender?
After I close on my home, when do I need to pay the second mortgage back?
Can I get the .25% rate reduction for the Ohio Heroes Program as well as the 2.5% grant?
Can Grants for Grads be used in conjunction with the Mortgage Credit Certificate (MCC) Program?
Why is there a second mortgage when this is a grant program?
Q How is the 2.5% grant calculated? Is there a minimum or maximum available amount?
A The grant is based upon the purchase price of the home and is exactly 2.5% of that price rounded to the nearest dollar. The grant cannot exceed 2.5% of the maximum purchase price in the county in which the home is located. Maximum purchase prices, based on federal census data, are available.
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Q Are there any fees involved if I use the Grants for Grads Program?
A OHFA permits lenders to charge fees that are normal and customary for loans originated through our program. Borrowers using the Grants for Grads Program will be assessed a $75 second mortgage processing fee from the lender and an additional $75 OHFA administrative fee to cover homebuyer education.
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Q Can I still get the grant if I graduated from college in Ohio, but not high school?
A The Ohio General Assembly, which created Grants for Grads, specifically stated that the borrower must have resided in Ohio and have graduated from an Ohio high school. In addition, the educational institution must be recognized by the Ohio Board of Regents, regardless of location.
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Q I received my Graduate Equivalency Degree (GED) in place of a high school diploma and went on to graduate from college. As a recent graduate, do I qualify for the Grants for Grads Program?
A The Ohio General Assembly did not include the GED certification as part of the legislation and, therefore, a GED would not qualify at this time.
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Q I earned a degree from a state technical college, but it is not considered an associate or bachelor's degree. Am I still eligible to use the Grants for Grads Program?
A Degrees earned at state technical colleges are accepted when applying for Grants for Grads. Those received at a private, for-profit technical school will be handled on a case-by-case basis.
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Q If both myself and my fiancé are recent graduates and qualify under the guidelines, would we both be eligible?
A The program is designed to only provide the 2.5% grant to one borrower per household.
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Q Will I have to complete homebuyer education through OHFA, or can I go through my lender?
A Borrowers using the Grants for Grads Program will be required to complete the homebuyer education through OHFA. You may choose to use our streamlined process, or go to a U.S. Department of Housing and Urban Development (HUD) approved counseling agency. OHFA does not accept homebuyer education provided by lenders, mortgage insurers, or private companies. There is a $75 administration fee for homebuyer education.
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Q After I close on my home, when do I need to pay the second mortgage back?
A If you remain in Ohio for at least five years, there is no requirement to repay the grant. If you sell the home but maintain residency in Ohio within the first five years, there is no requirement to repay the grant. However, if you move out of the state within the five-year period, there is a graduated scale for repayment based on the number of months you resided in Ohio.
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Q Can I get the .25% rate reduction for the Ohio Heroes Program as well as the 2.5% grant?
A While both options are available through OHFA's First-Time Homebuyer Program, the Grants for Grads Program is not designed to allow participants to also use the Ohio Heroes Program.
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Q Can Grants for Grads be used in conjunction with the Mortgage Credit Certificate (MCC) Program?
A The Grants for Grads Program may not be used in conjunction with the Agency's MCC Program.
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Q If I finance 100% of my home purchase with a Veterans Administration or Rural Development loan, can I still use Grants for Grads?
A You may use the Grants for Grads Program to pay closing costs or to reduce your principal balance, but you may not receive cash back at closing.
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Q Why is there a second mortgage when this is a grant program?
A The lender will record a second mortgage in OHFA's name as security for repayment of the grant if you move out of Ohio within the first five years after closing your loan. After five years, the second mortgage will be totally forgiven.
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