Down Payment Assistance Loan Program

What is Down Payment Assistance Loan Program?

Down Payment Assistance Loan Program is a deferred second loan for homebuyers in Euclid, Ohio.

• Euclid Development Corp DPA: $10,000 5-year forgivable second mortgage for buyers within City of Euclid (workforce housing focus, no FTHB requirement, ~120% AMI cap).
• Up to $10,000 in down payment and closing cost assistance for buyers purchasing within City of Euclid limits. 0% interest 5-year forgivable second mortgage administered by Euclid Development Corporation, the City of Euclid's economic development arm. Workforce housing focus — first-time homebuyer status NOT required, income to ~120% AMI Cuyahoga County.
• Funding comes from Local, City, and CDBG.

Do you have to pay it back?

Down Payment Assistance Loan 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/vacates within 5 years.
• 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?

Down Payment Assistance Loan Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Down Payment Assistance Loan Program limits household income to 120% of the area median income, which varies by county and household size.

• Household income at or below ~120% Cleveland-Elyria MSA AMI: $81,650-$153,950 by household size.
• 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?

Down Payment Assistance Loan Program caps the purchase price at $281,000.

• 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?

Down Payment Assistance Loan 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?

Down Payment Assistance Loan Program serves buyers purchasing in Euclid, Ohio.

How do you apply?

Applications for Down Payment Assistance Loan 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 HUD-approved housing counseling agencies in greater Cleveland including CHN Housing Partners and NHS Greater Cleveland.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Apply via Euclid Development Corporation, 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.