City of Dayton Down Payment Assistance Program

What is City of Dayton Down Payment Assistance Program?

City of Dayton Down Payment Assistance Program is a deferred second loan for homebuyers in Dayton, Ohio.

• City of Dayton-funded down payment assistance administered by The HomeOwnership Center. Up to $10,000 forgivable over 5 years for first-time buyers within Dayton city limits.
• Up to $10,000 in down payment and closing cost assistance for first-time homebuyers purchasing within City of Dayton limits. 0% interest, deferred 5-year forgivable second mortgage administered by The HomeOwnership Center, a HUD-approved housing counseling agency. Funds for down payment, closing costs, and minor pre-purchase repairs.
• Funding comes from Local, City, CDBG, and HOME.

Do you have to pay it back?

City of Dayton Down Payment Assistance Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Pro rata recapture if owner sells, refinances, or vacates within 5-year affordability period.
• The assistance is recorded in 2nd Lien 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 Dayton Down Payment Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

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

• Household income at or below 80% Dayton MSA AMI per HUD HOME limits.
• 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?

City of Dayton Down Payment Assistance Program caps the purchase price as follows: Per HUD HOME 95% area median sales price for Montgomery County.

• Eligible property types include Single-family detached, condo, townhouse, 1-2 unit owner-occupied.
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

City of Dayton Down Payment Assistance Program names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

City of Dayton Down Payment Assistance Program serves buyers purchasing in Dayton, Ohio.

• The program targets specific areas: City of Dayton CDBG-eligible neighborhoods.

How do you apply?

Applications for City of Dayton Down Payment Assistance Program go through the administering agency, 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 The HomeOwnership Center (HOC) — required 8-hour pre-purchase homebuyer education plus one-on-one counseling.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Apply via The HomeOwnership Center; subject to annual City of Dayton CDBG/HOME allocation, 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.