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. Funding comes from HUD HOME Investment Partnerships Program (Butler County / City of Middletown HOME Consortium - Butler County Entitlement).

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 homebuyers 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.

Butler County Down Payment & Closing Cost Assistance Program is forgiven after 5 years, so a homebuyer 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.

Butler County Down Payment & Closing Cost Assistance Program is open to homebuyers who will live in the home as their primary residence. On credit, the program states: No published minimum credit score; all bankruptcies must be at least 2 years old from date of discharge. A homebuyer education course is required, through NHSH or any HUD-approved housing counseling agency; certificate valid 1 year. Residency requirement: Property must be located within the Butler County Entitlement and Consortium area, excluding the City of Hamilton. Minimum $500 borrower contribution (cannot be gifted); 8 hours of pre/post-purchase counseling and a HUD-approved Homebuyer Education certificate required prior to closing; DTI may not exceed 43%; bankruptcies discharged at least 2 years; first mortgage fixed-rate fully amortizing with escrows; no cash back; HQS inspection and lead clearance required.

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.

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.

Butler County Down Payment & Closing Cost Assistance Program serves homebuyers purchasing in Butler County, Ohio.

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. Funds are reserved through First-come, first-serve; application packet submitted by lender to NHSH preferably no less than 4 weeks before closing. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.