City of Lorain Down Payment Assistance Program

What is City of Lorain Down Payment Assistance Program?

City of Lorain Down Payment Assistance Program is a forgivable loan for homebuyers in Lorain, Ohio, administered by City of Lorain Department of Building, Housing and Planning.

• The City of Lorain Down Payment Assistance Program helps low-income, first-time homebuyers purchase a home within the City of Lorain using HUD HOME funds. Assistance is a deferred, subordinate, 0% loan of up to 10% of the purchase price, capped at $14,900, forgiven 20% per year over five years. The program commenced in 2025 per the City's 2025-2030 Consolidated Plan.
• Up to $14,900 (max 10% of price).
• 0% interest, deferred.
• Forgivable over 5 yrs (20%/yr).
• Reduces first mortgage.
• For low-income first-time buyers.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from Federal and HOME.

How much assistance does it provide?

City of Lorain Down Payment Assistance Program offers up to $14,900 in assistance.

• Amounts are the program's published maximums, not an offer — City of Lorain Department of Building, Housing and Planning determines any individual award.

Do you have to pay it back?

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

• Repayment is triggered by Sale, Transfer of ownership, Refinance during 5-yr term, and Ceases to be primary residence.
• 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 Lorain 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 Lorain Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• Low-income qualified at or below 80% AMI (HUD/OHFA HOME income limits, set annually; dollar figures not restated in the source).
• 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 Lorain Down Payment Assistance Program caps the purchase price as follows: No dollar cap stated; assistance limited to 10% of purchase price up to $14,900, subject to HOME per-unit subsidy and value limits.

• Eligible property types include Single Family.

Where does it apply?

City of Lorain Down Payment Assistance Program is a federal program, so it is not limited to Ohio.

How do you apply?

Applications for City of Lorain Down Payment Assistance Program go through City of Lorain Department of Building, Housing and Planning, which publishes the current terms and the application steps on its own site.

1. 1

   Contact City of Lorain Department of Building, Housing and Planning to reserve funds

   Funds are reserved with the provider and are subject to availability.

2. 2

   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.