First Home Lima Down Payment Assistance Program

First Home Lima Down Payment Assistance Program is a forgivable loan for homebuyers in Lima, Ohio, administered by City of Lima Department of Housing & Neighborhoods (with New Lima – Housing For The Future and WOCAP). A HOME-funded down payment and closing-cost assistance program for first-time homebuyers purchasing a primary residence within the City of Lima. Administered by the City of Lima with New Lima – Housing For The Future and WOCAP, it provides up to $9,999 as a 0% deferred, forgivable second-mortgage loan forgiven 20%/year over 5 years. Buyers must be lender pre-approved, complete homeownership and property-maintenance education, save at least $1,000, and be approved before signing a purchase contract. Up to $9,999. 0% interest. Forgivable after 5 years of residency. Free homebuyer and property-maintenance education. Funding comes from Federal HOME funds administered by the City of Lima.

First Home Lima Down Payment Assistance Program offers up to $9,999 in assistance. The program asks homebuyers to contribute $1,000 in designated savings required from the buyer; can be applied toward closing only with verification of use. The program can be combined with other assistance, subject to the rules of each. Amounts are the program's published maximums, not an offer — City of Lima Department of Housing & Neighborhoods (with New Lima – Housing For The Future and WOCAP) determines any individual award.

First Home Lima 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, conveyance, or transfer triggers repayment of the outstanding balance; default (renting or no longer occupying as primary residence) triggers repayment of the original loan amount in full. The assistance is recorded in Subordinate (promissory note and mortgage) position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

First Home Lima 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: Owned in past 3 years may still qualify if displaced homemaker/single parent, in non-affixed manufactured housing, owner-occupant of a home not feasible to renovate, or transferring partial title. A homebuyer education course is required, through WOCAP homeownership training and budget counseling; New Lima Property Maintenance Training and home maintenance plan. Residency requirement: Home must be within the City of Lima corporate limits. Must be lender pre-approved AND program-approved BEFORE a purchase agreement; $1,000 designated savings; WOCAP training and New Lima maintenance class/plan; City inspection with violations cured before closing; homeowner's insurance with annual proof for 5 years; 35% housing-ratio cap (max_dti left blank as front-end only). Verified via the June 1, 2026 application packet PDF. Amount is $9,999 per the official PDF (news/aggregator '$14,999' not supported).

First Home Lima Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size. Household income below 80% AMI for Lima; 2026 max gross by family size: 1 $49,250; 2 $56,250; 3 $63,300; 4 $70,300; 5 $76,000; 6 $81,600; 7 $87,250; 8 $92,850. Minimum gross income to qualify is $25,000. 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.

First Home Lima Down Payment Assistance Program caps the purchase price at $209,000. Eligible property types include Single Family and 2-4 Unit. Manufactured homes are not eligible.

First Home Lima Down Payment Assistance Program serves homebuyers purchasing in Lima, Ohio.

Applications for First Home Lima Down Payment Assistance Program go through City of Lima Department of Housing & Neighborhoods (with New Lima – Housing For The Future and WOCAP), which publishes the current terms and the application steps on its own site. Funds are reserved through Application to New Lima – Housing For The Future; must be approved before entering a purchase agreement; ~2-3 weeks processing. 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.