Grants for Grads

What is Grants for Grads?

Grants for Grads is a forgivable loan for homebuyers in Statewide, Ohio.

• Grants for Grads is an OHFA program designed to help recent college graduates (within 48 months of graduation with an associate's, bachelor's, master's, doctorate, or other professional degree from an accredited college or university) purchase their first home in Ohio. Borrowers receive 2.5% or 5% of the purchase price as a forgivable second mortgage and a discounted first-mortgage interest rate. The DPA is 100% forgiven after the borrower remains in the home for 24 months (2 years).
• Grants for Grads provides 2.5% or 5% of the home's purchase price as down payment, closing-cost, or pre-paid item assistance to recent college graduates buying their first home in Ohio. The assistance is structured as a forgivable second-mortgage loan that is 100% forgiven after the buyer remains in the home for 24 months (2 years). If the buyer sells, refinances, or moves out within 24 months, the full original amount is due. The forgiveness clock and borrower-friendly structure are designed to keep recent grads in Ohio after graduation. Must be paired with an OHFA first-mortgage product, and the first-mortgage rate is reduced for Grants for Grads borrowers.
• Funding comes from Tax-exempt Mortgage Revenue Bonds and other OHFA capital sources.

How much assistance does it provide?

Grants for Grads provides assistance worth 2.5% of the purchase price, as set by the program.

• Buyer contribution: No OHFA-imposed minimum borrower contribution; loan-product overlays apply.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Grants for Grads is forgiven after 2 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Full original balance due if home is sold, refinanced (without subordination), title transferred, or no longer occupied as principal residence within 24 months and lien 100% forgiven at end of month 24.
• 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?

Grants for Grads is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Grants for Grads limits household income to $179,480.

• 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?

Grants for Grads caps the purchase price at $1.4M.

• Eligible property types include Single-family detached, condominiums, townhomes, 1-unit owner-occupied, eligible manufactured homes (permanently affixed), and 2-unit allowed only in target areas if 5+ years old.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Grants for Grads names veterans, active-duty service members, reservists and National Guard members, surviving spouses, American Indian and Alaska Native buyers, educators, law enforcement officers, firefighters, healthcare workers, and buyers with disabilities 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?

Grants for Grads serves buyers purchasing in Statewide, Ohio.

• The program targets specific areas: Federal target areas (qualified census tracts) in Ohio where the FTHB requirement is waived and higher income/purchase-price limits apply.

How do you apply?

Applications for Grants for Grads 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 Free Streamlined Homebuyer Education from OHFA online (eHome America-powered) required prior to closing; HUD-approved counseling agencies also accepted.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Lender reserves rate, first-mortgage funds, and DPA via OHFA's Lender Online portal on a first-come, first-served basis, 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.