Target Area Loan Product

OHFA's Target Area Loan product helps revitalize federally-designated target areas by making our affordable first-time homebuyer loan products and competitive interest rates available to ANY qualifying buyer purchasing a home in these areas.

What is a Target Area?

A target area is a Census tract where the housing market is highly challenged. There are two types of target areas: Qualified Census Tracts (QCTs), which are based on household income data and designated by the U.S. Department of Housing and Urban Development (HUD), and Areas of Chronic Economic Distress (ACEDs), which are designated by OHFA and subject to federal approval. A home must be located in at least one of these to be eligible for a target area loan. Most Ohio counties contain both target and non-target areas. Click here to determine whether a property is located within a target area.

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Do I Qualify?

Target Area Loan product applicants do not have to be first-time buyers. However, the following program requirements apply.

To qualify for an OHFA Target Area Loan product, you must:

  • Meet OHFA's income and purchase price limits. The limits vary by county. Please note that income and purchase price limits may be higher for target area loans.
  • Be creditworthy. Minimum credit scores may apply.
  • Have a signed Purchase and Sales Agreement.
  • Qualify for the loan being requested. Lenders will assess your ability to afford a home by considering income, assets, job stability, liabilities, and other criteria.

Additional property requirements:

  • Loans are available for properties up to two acres (unless additional acreage is required by local health or safety code).
  • Qualifying properties include:
    • Existing homes: one-unit single-family dwelling and duplexes up to four units
    • Spec/Nearly completed homes: one-unit single-family dwellings
    • Modular/Manufactured homes: one-unit single-family dwellings

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How to Apply

OHFA partners with a variety of Ohio lenders including banks, mortgage companies and credit unions to make our loans available on a continuous basis year round. Learn more about the loan process or contact a participating lender to apply.

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Loan Types

To meet each homebuyer’s needs, OHFA offers a variety of loan products including:

  • Fannie Mae conventional loans with special features and flexible terms
  • Government-insured loans including traditional FHA, VA, and USDA-RD loans

All OHFA loan products offer competitive rates and other beneficial features. Your lender can help you choose the right loan for your needs.

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Loan Features/Benefits
  • Available to any qualified homebuyer
  • For new or existing homes
  • Competitive market, 30-year fixed interest rate
  • Flexible rate options
  • Available in all 88 Ohio counties
  • Generous purchase price and income limits

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Loan Fees

The following fees may apply to your loan:

  • .50% origination fee
  • $200 transfer fee
  • $85 tax service fee
  • .25% adverse market fee (conventional loans only)

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Down Payment Assistance

If you need or want assistance with your down payment and closing costs, OHFA offers either Down Payment Assistance or a Grants for Grads product, which can significantly reduce your out-of-pocket expenses.

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Homebuyer Education

All borrowers are required to take advantage of the free homebuyer education classes available through a HUD-approved housing counseling agency or to use OHFA's Streamlined Homebuyer Education. Learn more.

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About Recapture Tax

OHFA will reimburse borrowers for the full amount of any recapture tax in the rare instances where tax repayment is required. Learn more.

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Downloadable Information

You can download information about our loan products from our download center.

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Your lender and/or real estate agent can guide you through the home buying process and answer any questions you may have regarding OHFA's Target Area Loan product. You can also check out our homeownership FAQs.

If you need additional information, please contact:

Office of Homeownership
Ohio Housing Finance Agency
57 East Main Street
Columbus, Ohio 43215

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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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