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. Funding comes from Federal and HOME.

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.

City of Lorain Down Payment Assistance Program is forgiven after 5 years, so a homebuyer 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.

City of Lorain Down Payment Assistance Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: No ownership interest in a home in the past 3 years; exception for displaced homemakers. Residency requirement: Home must be within the City of Lorain and occupied as primary residence through the 5-year affordability period. Detailed program manual not publicly posted — confirm current intake with the Dept (440-204-2020). Buyer uses their own qualified first-mortgage lender; the City provides a subordinate HOME loan (confirm at intake).

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.

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.

City of Lorain Down Payment Assistance Program serves homebuyers purchasing in Lorain, Ohio.

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. 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.