City of Cleveland Heights Down Payment Assistance Loan Program

What is City of Cleveland Heights Down Payment Assistance Loan Program?

City of Cleveland Heights Down Payment Assistance Loan Program is a deferred second loan for homebuyers in Cleveland Heights, Ohio, administered by City of Cleveland Heights Housing Preservation Office (facilitated by Home Repair Resource Center).

• A HUD HOME-funded, city-wide down payment assistance loan for income-eligible owner-occupant buyers of one- and two-family homes in Cleveland Heights. Provides up to $10,000 (13–17% of sales price on a sliding scale by income) as a 0% deferred second mortgage, repaid in full at resale, transfer, or loss of owner-occupancy. Administered by the City's Housing Preservation Office with applications facilitated by the Home Repair Resource Center.
• Up to $10,000 assistance.
• 0% interest.
• No monthly payments (deferred).
• Helps low/moderate-income buyers in Cleveland Heights.
• Funding comes from HUD HOME Investment Partnerships Program (City of Cleveland Heights).

How much assistance does it provide?

City of Cleveland Heights Down Payment Assistance Loan Program offers up to $10,000 in assistance.

• Award tiers: Sliding scale by income: <=60% AMI up to 17% of sales price; <=70% AMI up to 15%; <=80% AMI up to 13% — each capped at $10,000.
• Buyer contribution: Minimum 3.50% of sales price (gift funds eligible). After contribution, liquid assets may not exceed $5,000 or 6 months PITI, whichever is greater.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — City of Cleveland Heights Housing Preservation Office (facilitated by Home Repair Resource Center) determines any individual award.

Do you have to pay it back?

City of Cleveland Heights Down Payment Assistance Loan Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Repaid in full immediately upon resale, transfer, or when no longer owner-occupied (no forgiveness schedule; due-on-sale deferred loan).
• The assistance is recorded in Second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Cleveland Heights Down Payment Assistance Loan Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

City of Cleveland Heights Down Payment Assistance Loan Program limits household income to 80% of the area median income, which varies by county and household size.

• Household gross income at or below HUD guidelines by size: 1 $44,050; 2 $50,350; 3 $56,650; 4 $62,900; 5 $67,950; 6 $73,000 (revised annually). For two-family purchases, potential rental income is added.
• The limit applies to total household income, not only the borrower&rsquo;s.
• 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?

City of Cleveland Heights Down Payment Assistance Loan Program caps the purchase price at $131,000.

• Eligible property types include Single Family and 2-4 Unit.
• New construction is not eligible.
• Manufactured homes are not eligible.

Where does it apply?

City of Cleveland Heights Down Payment Assistance Loan Program serves buyers purchasing in Cleveland Heights, Ohio.

How do you apply?

Applications for City of Cleveland Heights Down Payment Assistance Loan Program go through City of Cleveland Heights Housing Preservation Office (facilitated by Home Repair Resource Center), 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 HUD-approved agency; Home Repair Resource Center Home Buyer Education Series (pre-purchase and home-maintenance certificates)..

2. 2

   Contact City of Cleveland Heights Housing Preservation Office (facilitated by Home Repair Resource Center) to reserve funds

   Funds are reserved through 60-day funding reservation recommended before signing a purchase agreement; allow 30+ days for processing; apply through the buyer's first-mortgage lender., 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.