EDCOR First Time Home Buyer Down Payment Assistance Loan Program

EDCOR First Time Home Buyer Down Payment Assistance Loan Program is a forgivable loan for homebuyers in Euclid, Ohio, administered by Euclid Development Corporation (EDCOR). EDCOR's Down Payment Assistance Loan is a HOME-funded second mortgage for qualified first-time homebuyers purchasing in Euclid, Ohio. It provides up to $10,000 (or 17% of purchase price, whichever is less) used to reduce the first mortgage principal at closing. It is a 0% interest, 5-year forgivable loan: 50% is forgiven after 5 years of owner-occupancy with an annual proof-of-residence affidavit; the remaining 50% is recaptured upon sale, transfer, or refinance. Up to $10,000 at 0% interest with no monthly payments. Reduces first mortgage principal at closing. 50% forgiven after 5 years of owner-occupancy. Can eliminate PMI sooner. Funding comes from Federal HOME Investment Partnerships Program (via City of Euclid / HUD).

EDCOR First Time Home Buyer Down Payment Assistance Loan Program offers up to $10,000 in assistance. Award tiers: Loan amount up to 17% of purchase price, capped at $10,000; amount varies by income level. Homebuyer contribution: Minimum 3.5% of purchase price from personal savings, a bona fide family gift, or a stackable lender grant (not seller givebacks, not the DPA loan). The program can be combined with Buyer's 3.5% may come from a stackable lender grant; combinable with EDCOR's $250 Challenge ($2,250) program. Amounts are the program's published maximums, not an offer — Euclid Development Corporation (EDCOR) determines any individual award.

EDCOR First Time Home Buyer Down Payment Assistance Loan Program is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by 50% forgiven after 5 years (60 months) of continuous owner-occupancy with annual proof-of-residence affidavit; remaining 50% recaptured upon sale, transfer, or refinance. The assistance is recorded in Second mortgage (behind first) position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

EDCOR First Time Home Buyer Down Payment Assistance Loan Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Must not have owned a home in the past 3 years; exception for recently divorced/displaced homeowners with documentation. On credit, the program states: No minimum credit score in program materials; creditworthiness governed by the first-mortgage lender. A homebuyer education course is required, through Benjamin Rose; Realty Reimagined; Cleveland Housing Network; NID Housing Counseling Agency; Home Repair Resource Center. Residency requirement: Property must be in the City of Euclid, Ohio and the borrower's primary residence. Citizenship or immigration status: Must be a legal U.S. citizen/resident. Loan term 5 years (forgivable second mortgage). NON-TRADITIONAL: assistance reduces the first mortgage principal and CANNOT be used for the buyer's 3.5% down payment or closing costs; buyer must separately contribute 3.5% of purchase price from own funds, gift, or a stackable lender grant. Closing must be scheduled at least 45 days after the accepted purchase agreement. 60-day funding commitment letter issued after preliminary approval; renewal not guaranteed due to limited funding. Subordination considered case-by-case only.

EDCOR First Time Home Buyer Down Payment Assistance Loan Program limits household income to $126,000. 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.

EDCOR First Time Home Buyer Down Payment Assistance Loan Program caps the purchase price at $219,000. Eligible property types include Single Family, Townhouse, and Condo. New construction is eligible. Manufactured homes are not eligible.

EDCOR First Time Home Buyer Down Payment Assistance Loan Program serves homebuyers purchasing in Euclid, Ohio. Targeted neighborhoods: Entire City of Euclid, Ohio.

Applications for EDCOR First Time Home Buyer Down Payment Assistance Loan Program go through Euclid Development Corporation (EDCOR), which publishes the current terms and the application steps on its own site. Funds are reserved through First-come, first-served; 60-day funding commitment letter after preliminary income-eligibility review. 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.