CHP Ohio Housing Trust Fund Down Payment Assistance Program

CHP Ohio Housing Trust Fund Down Payment Assistance

Description of Program 
Eligible homebuyers can receive up to 3% or $3,000, which ever is less, for down payment assistance and closing costs. This down payment can be combined with other down payment programs.No seller financing. The total loan to value cannot exceed 100 percent of the purchase price or appraised value, whichever is less. The down payment can be used for the origination fee, appraisal fees credit report fee, title binder & title policy, survey, EPA endorsement, property inspection closing fee, MIP that cannot be financed.

The down payment assistance is in the form of a zero percent, deferred loan. The loan will be forgiven after five years as long as the borrower maintains the property as his/her principal residence and complies with the other requirements of the program. Upon approval of a loan for down payment assistance, the homebuyer shall have 30 days to close on the loan. The commitment shall automatically expire after 30 days. 

Financing

• The homebuyer must have debt ratios of no more than 29% (housing) and 41% (total debt).
• The interest rate on the first mortgage must be a fixed rate loan and may not exceed the current market rate by more than 2%.
• Non-conforming loan programs are ineligible.
• The homebuyer must have a minimum of $500 towards the application fee, down payment and/or closing costs.
• The homebuyer may not have more than $3,000 in liquid assets (excluding 401K and pension funds).
• This loan is to be subordinate to the first mortgage on the property being purchased.

Eligible Homes
Home must be located inside Franklin County. All properties are recommended to have a home inspection. A copy of the home inspection report must be supplied to CHP. If FHA financing is obtained, a complete copy of the FHA appraisal with Valuation Condition sheet must also be supplied with application to CHP. 

Eligible Households 

• Homebuyer must be a first time homebuyer or have not owned a home in the past 3 years. 
• Total household income must be at or below 65% of the median income according to the most recent HUD guidelines for Columbus MSA.
• To receive down payment assistance funds, homebuyer must be referred to CHP by his/her lender and must meet with a CHP housing counselor. The lender must also provide a complete down payment assistance package.

Homebuyer Education is required and must be taken from an approved HUD certified housing counseling agency. Fast Track or Quick Start certificates will not be accepted.

Contact:  Loretta King, Loan Program Coordinator, (614) 221-8889, #123