OHFA Downpayment Assistance Programs

OHFA 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 2% 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.

2% Down Payment Assistant Grant

• 2 percent of purchase price
• Must be 95 percent loan-to-value or greater
• Pays slightly higher interest rate on first mortgage
• Can be used for down payment or closing costs
• Cannot combine with 4 percent second mortgage program

4% Second Mortgage Down Payment Assistance Program

• Up to 4 percent of purchase price with any OHFA loan
• Interest rate 2 percent higher that the related OHFA first mortgage (example, 5% first mortgage and 7% second)
• Still get lowest rate on OHFA first mortgage
• Can be used for down payment or closing costs
• Fully amortized over 20 year term
• Cannot combine with 2% down payment gratn program
• Make on payment for both mortgages

Eligibility

The program is available to first-time homebuyers (persons not owning or occupying their principle residence in the last three years), or anyone purchasing a home in a targeted area.

• Homebuyers must 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.
  
• OHFA loans are offered through a network of participating lenders covering all 88 counties in the state. For information, call the Office of Homeownership at (614) 466-3821.

Note: The recapture tax provision applies to all loans in this program. Go to IRS link for an explanation on recapture of federal subsidy.

LOANS ARE AVAILABLE ON A FIRST-COME, FIRST-SERVED BASIS