Next Home Down Payment Assistance program

What is Next Home Down Payment Assistance program?

Next Home Down Payment Assistance program is a deferred second loan for homebuyers in Statewide, Ohio.

• Next Home is OHFA's down payment assistance program for repeat homebuyers (no FTHB requirement) using the OHFA Next Home first-mortgage product. Borrowers select either 2.5% or 5% of the home's purchase price as a 0% interest deferred second mortgage, fully forgiven after 7 years in the home. Designed for move-up buyers and Ohioans relocating within the state who do not qualify as first-time homebuyers.
• Next Home Down Payment Assistance is OHFA's DPA option for repeat buyers (no first-time-homebuyer requirement). Borrowers receive 2.5% or 5% of the purchase price as a 0% interest, deferred second-mortgage loan to be applied to down payment, closing costs, or pre-paid items. The lien is 100% forgiven if the borrower stays in the home for 7 years.
• otherwise the full amount is due upon sale, refinance, or transfer of title. Next Home is paired with an OHFA Next Home first mortgage and is intended to expand homeownership opportunities to move-up and repeat buyers who do not qualify as first-time homebuyers.
• Funding comes from Non-bond capital (TBA capital markets execution); not bond-funded, so no IRS recapture.

How much assistance does it provide?

Next Home Down Payment Assistance program 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?

Next Home Down Payment Assistance program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Full balance due if home is sold, refinanced (without subordination), title transferred, or no longer occupied as principal residence within 7 years and lien fully forgiven at end of year 7.
• 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?

Next Home Down Payment Assistance program is open to buyers who will live in the home as their primary residence.

What are the income limits?

Next Home Down Payment Assistance program 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?

Next Home Down Payment Assistance program caps the purchase price at $1.4M.

• Eligible property types include Single-family detached, condominiums, townhomes, 1-unit owner-occupied and eligible manufactured homes (permanently affixed).
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Next Home Down Payment Assistance program 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?

Next Home Down Payment Assistance program serves buyers purchasing in Statewide, Ohio.

How do you apply?

Applications for Next Home Down Payment Assistance 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 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.