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Sunday, April 5, 2020

Down Payment Assistance helps central Ohio Homebuyers

Author(s):Jonathan Duy

While many potential homebuyers have saved for down payments, they can often be surprised by the amount of upfront costs associated with buying a home. The Ohio Housing Finance Agency offers assistance for low- to moderate-income Ohioans to offset these financial expenses and help purchase their dream home.

Through the YourChoice! Down Payment Assistance program, homebuyers can choose 2.5 percent or 5 percent of the home’s purchase price for down payment assistance which can be used towards a down payment, closing costs, and other prepaid expenses incurred prior to closing.

An example of YourChoice! Down Payment Assistance:

Purchase Price: $200,000
FHA Loan:  3.5 percent down payment requirement
5 percent YourChoice! DPA = $10,000 towards down payment, closing costs and prepaid expenses.

If the homebuyer stays in their home for seven or more years, the assistance is forgiven. If homebuyers sell or refinance their home within seven years, they will be required to pay back the assistance.

Homebuyer Eligibility:

Credit Score Requirements
Homebuyers must meet credit score requirements to qualify for OHFA loans and products. For FHA loans, applicants must have a score of 650 or higher. For conventional, USDA, and VA loans, applicants must have a score of 640 or higher.

Income Limits
Franklin County
• 1 or 2-person family: $93,600
• 3 or more-person family: $109,200

Income limits can vary if the home is located in a target area1. Income limits for nearby counties are listed at myohiohome.org/limits.

Qualifying Properties
Applicants must purchase a property that is limited to two acres within a municipal corporation and five acres outside a municipal corporation, unless additional acreage is required by local health or safety codes. Qualifying properties include: existing homes (single-family dwellings, condominiums, duplexes and up to four-unit properties), newly built spec/nearly completed homes, and one-unit single-family dwellings or modular homes. The property must serve as the homebuyer’s primary residence.

Finding a Qualified Lender
Homebuyers must use an OHFA-approved lender for the purchase of their home in order to receive YourChoice! Down Payment Assistance. OHFA lenders can be found at myohiohome.org/lenders.

Preparing Your Clients for Homeownership
OHFA requires homebuyers to complete free homebuyer education2, to prepare them for the purchase and financial responsibilities of owning a home. Real estate agents can also attend continuing education courses3 to learn more about OHFA homebuyer programs.

Let us help you get your client into a home at an affordable price. For more information and eligibility criteria, please visit myohiohome.org.

*Additional eligibility criteria is required. OHFA Homeownership programs and products are subject to change.

1. https://myohiohome.org/Geodata/Default.aspx
2. https://myohiohome.org/homebuyereducation.aspx
3. https://ohiohome.org/partners/realtors.aspx

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