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Opportunity Loan Refinance Program Fact Sheet
Opportunity Loan Refinance Program Brochure
Do you have an adjustable rate mortgage (ARM) and worry about how you are going to make your monthly mortgage payment once the interest rate resets? Did you finance your home with an interest-only or a high-rate loan? Has an unplanned life event such as a medical emergency, divorce or change in employment made it difficult to pay your mortgage each month? The Opportunity Loan may be able to help you.
The Opportunity Loan is a refinance program that provides an affordable 30-year, fixed-rate financing alternative to borrowers who have a current mortgage that is no longer suitable for their financial situation.
To assist you with closing costs, the Opportunity Loan offers additional financial assistance. This 20-year, fixed-rate second mortgage is available at an amount up to five percent of the appraised value of the home. The second mortgage may also be used to pay fees associated with your existing mortgage, including escrow payments, pre-payment penalties, late fees, attorney fees or other financing charges.
A minimum of four hours of HUD-approved counseling is required. Typically, this includes two hours during an initial meeting and an additional two hours of one-on-one counseling. All counseling must be completed before closing the loan. OHFA also requires counseling if a mortgage payment under the newly refinanced loan is 30 or more days late. For a list of available counselors, visit www.hud.gov.
With proper documentation, you may be reimbursed for out-of-pocket expenses for an appraisal, credit report or any up-front hazard insurance payments. A full appraisal is required to determine the current value of the home. Mortgage insurance is required for loans that have a greater than 80 percent loan-to-value ratio.
Due to recently expanded underwriting guidelines, certain credit issues on your current mortgage in the last 12 months may be acceptable.
Your household's income may not exceed 125 percent of the county's area median gross income. View the refinance income limits for more information, as income limits vary by county.
You must live in the home that is being refinanced. Eligible properties include single-family detached housing, condominiums, townhouses, modular and planned unit developments. Two to four-unit properties, mobile or manufactured homes are currently not permitted.
While we strive to assist as many borrowers as possible, applicants must qualify using the expanded underwriting guidelines.
A participating lender will assist you in determining what home loan best fits your needs. The Opportunity Loan Checklist will help you prepare to meet your lender. Lending institutions throughout Ohio work with OHFA to offer the Opportunity Loan. Find a lender
Various local, state and federal organizations and agencies serve as a resource for affordable housing issues. If you find that you do not qualify for an Opportunity Loan, other options may be available to you through additional housing resources. The Ohio Treasurer's Office provides a list of Foreclosure Intervention Resources by County.
To help educate homebuyers and homeowners about today's
mortgage options, the National Association of REALTORS®
(NAR) and the Center for Responsible Lending have produced
a series of consumer information brochures:
- How to Avoid Foreclosure and Keep Your Home
- How to Avoid Predatory Lending
- Specialty (Nontraditional) Mortgages: What are the Risks
and Advantages?
- Traditional Mortgages: Understanding Your Options
NAR has also issued a brochure in partnership with HUD's
Federal Housing Administration (FHA):
- Shopping for a Mortgage? FHA Improvements Benefit You
You can find all the brochures on NAR's web site at www.REALTOR.org/.
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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