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OHFA Down Payment Assistance

Statewide, Ohio

Last verified
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Assistance

2.5%

Of the purchase price, as the program sets it

Income limit

$179,480

The household income limit the program publishes

Price cap

$1.4M

Highest purchase price the program allows

Repayment

Deferred

No payments until the home is sold or refinanced

What is OHFA Down Payment Assistance?

OHFA Down Payment Assistance is a deferred second loan for homebuyers in Statewide, Ohio.

  • OHFA Down Payment Assistance is OHFA's standard DPA option for first-time homebuyers (and qualified veterans / targeted area buyers) using the OHFA Your Choice! first mortgage. Borrowers select either 2.5% or 5% of the purchase price as a 0% interest, deferred second mortgage. The DPA carries no monthly payment and is forgiven if the borrower stays in the home for 7 years; otherwise it is repaid upon sale, refinance, or transfer.
  • OHFA Down Payment Assistance provides a 0% interest, deferred second mortgage equal to either 2.5% or 5% of the home's purchase price to help with down payment, closing costs, or pre-paid items. Borrowers choose the tier at application: the 2.5% option carries a slightly lower first-mortgage interest rate, while the 5% option carries a slightly higher first-mortgage rate. The DPA is fully forgiven only if the borrower stays in the home for 7 years (no payments and no interest).
  • otherwise the full balance is due upon sale, refinance, or transfer of title. The DPA must be paired with an OHFA first-mortgage product (Your Choice! or YourChoice).
  • Funding comes from Tax-exempt Mortgage Revenue Bonds and other OHFA capital sources.

How much assistance does it provide?

OHFA Down Payment Assistance 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 (FHA/VA/USDA/Conventional) 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?

OHFA Down Payment Assistance 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?

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

The program requires

  • First-time homebuyer — with exceptions: First-time-homebuyer (3-year non-ownership) requirement is waived for qualifying veterans and for buyers purchasing in federally designated targeted census tracts (Target Area)
  • The home is occupied as a primary residence
  • On credit: 640 minimum FICO for FHA, VA, and USDA-RD loans; 650 minimum FICO for conventional loans (including Fannie Mae HFA Preferred and Freddie Mac HFA Advantage) and for manufactured home loans
  • A completed homebuyer education course, through Free Streamlined Homebuyer Education from OHFA online (eHome America-powered) required prior to closing for all borrowers; HUD-approved counseling agencies also accepted
  • Residency: Property must be in Ohio and occupied as principal residence within 60 days of closing
  • Citizenship or immigration status: U.S. citizen or qualified non-citizen per agency loan-product guidelines
  • Must be a first-time homebuyer (no ownership in a principal residence in the last 3 years) UNLESS purchasing in a federal targeted-area census tract OR qualifying as a veteran. Must use an OHFA first-mortgage product (Your Choice!) and meet OHFA income and purchase price limits (which vary by county and household size). Must occupy as principal residence within 60 days of closing. 640 minimum FICO for FHA/VA/USDA; 650 minimum FICO for conventional and manufactured homes. Maximum 50% DTI. Borrower must complete OHFA streamlined homebuyer education prior to closing.

The program excludes

  • Purchases above the $1.4M price cap
  • Households above $179,480

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

OHFA Down Payment Assistance 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?

OHFA Down Payment Assistance caps the purchase price at $1.4M.

  • Eligible property types include Single-family detached, condominiums, townhomes, 1-unit owner-occupied, eligible manufactured homes (must be permanently affixed and meet OHFA/agency guidelines), and 2-unit allowed only in target areas where existing residence.
  • New construction is eligible.
  • Manufactured homes are eligible.

Is there eligibility for specific groups?

OHFA Down Payment Assistance 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?

OHFA Down Payment Assistance 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. List of target areas published by OHFA at https://www.ohiohome.org/homebuyer/targetarea.aspx.

How do you apply?

Applications for OHFA Down Payment Assistance go through the administering agency, which publishes the current terms and the application steps on its own site.

  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 for all borrowers; HUD-approved counseling agencies also accepted.

  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. 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.

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