Butler County Down Payment & Closing Cost Assistance Program

What is Butler County Down Payment & Closing Cost Assistance Program?

Butler County Down Payment & Closing Cost Assistance Program is a forgivable loan for homebuyers in Butler County, Ohio, administered by Neighborhood Housing Services of Hamilton, Inc. (NHSH).

• The Butler County Down Payment & Closing Cost Assistance Program is administered by Neighborhood Housing Services of Hamilton, Inc. on behalf of the Butler County / City of Middletown HOME Consortium and provides eligible low-income homebuyers up to $7,500 (not to exceed 6% of the purchase price) toward down payment and eligible closing costs. The assistance is a 5-year non-amortizing forgivable loan secured by a subordinate mortgage held by Butler County, forgiven 20% per year. Properties must be located within the Butler County Entitlement/Consortium area, excluding the City of Hamilton, and households must be at or below 80% of area median income.
• Up to $7,500 in down payment and closing cost assistance.
• 5-year forgivable loan (20% forgiven per year).
• 0% interest, no monthly payments.
• Can cover 100% of reasonable closing costs.
• Can be applied toward FHA 3.5% down payment requirement.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from HUD HOME Investment Partnerships Program (Butler County / City of Middletown HOME Consortium - Butler County Entitlement).

How much assistance does it provide?

Butler County Down Payment & Closing Cost Assistance Program offers between $1,000 and $7,500 in assistance.

• Award tiers: Part of NHSH consortium program with separate caps for City of Hamilton, City of Middletown, and Butler County ($7,500 not to exceed 6% of purchase price).
• The program asks buyers to contribute $500.
• The program can be combined with FHA, Conventional, and VA first mortgages; can be applied toward FHA 3.5% down payment requirement.
• Amounts are the program's published maximums, not an offer — Neighborhood Housing Services of Hamilton, Inc. (NHSH) determines any individual award.

Do you have to pay it back?

Butler County Down Payment & Closing Cost Assistance Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale, transfer, or failure to occupy as principal residence before end of 5-year term; remaining balance pro-rated and repaid (20% forgiven per year).
• The assistance is recorded in Subordinate (second) mortgage held by Butler County position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Butler County Down Payment & Closing Cost Assistance Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

Butler County Down Payment & Closing Cost Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• Total household income at or below 80% of Butler County AMI per HUD HOME Program Income Limits (effective June 1, 2025). Income counted from all household members 18+ (excluding full-time students). 4-person 80% limit: $89,450.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Butler County Down Payment & Closing Cost Assistance Program caps the purchase price at $277,000.

• Eligible property types include Condo and Single Family.
• New construction is eligible.

Where does it apply?

Butler County Down Payment & Closing Cost Assistance Program is a federal program, so it is not limited to Ohio.

How do you apply?

Applications for Butler County Down Payment & Closing Cost Assistance Program go through Neighborhood Housing Services of Hamilton, Inc. (NHSH), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through NHSH or any HUD-approved housing counseling agency; certificate valid 1 year.

2. 2

   Contact Neighborhood Housing Services of Hamilton, Inc. (NHSH) to reserve funds

   Funds are reserved through First-come, first-serve; application packet submitted by lender to NHSH preferably no less than 4 weeks before closing, and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.