OHFA Mortgage Tax Credit (MTC)

What is OHFA Mortgage Tax Credit (MTC)?

OHFA Mortgage Tax Credit (MTC) is a mortgage credit certificate for homebuyers in Ohio, administered by Ohio Housing Finance Agency (OHFA).

• The Ohio Housing Finance Agency's Mortgage Tax Credit is a Mortgage Credit Certificate (MCC) that provides homebuyers a direct, non-refundable federal tax credit on a portion of mortgage interest paid each year, in addition to the home mortgage interest deduction. It can provide up to $2,000 in tax savings per year for the life of the loan. It is offered as MTC Plus (with an OHFA first mortgage; 40% credit rate) and MTC Basic (with a non-OHFA lender's mortgage; 20% in target areas, 15% in non-target areas).
• Federal tax credit up to $2,000 per year on mortgage interest, for the life of the loan.
• In addition to the standard mortgage interest deduction.
• Funding comes from Federal Mortgage Credit Certificate authority under IRC Section 25; administered by OHFA.

How much assistance does it provide?

OHFA Mortgage Tax Credit (MTC) offers up to $2,000 in assistance.

• Award tiers: MTC Plus (used with an OHFA mortgage): 40% credit rate, max $2,000/yr, combinable with OHFA Down Payment Assistance. MTC Basic (used with a non-OHFA mortgage): 20% credit rate in target areas, 15% in non-target areas (no credit score requirement).
• The program can be combined with OHFA Down Payment Assistance (with MTC Plus); other OHFA homebuyer programs per OHFA combining-programs guidance.
• Amounts are the program's published maximums, not an offer — Ohio Housing Finance Agency (OHFA) determines any individual award.

Do you have to pay it back?

OHFA Mortgage Tax Credit (MTC) is a tax credit rather than a loan, so there is nothing to repay.

• Repayment is triggered by Not a loan; no repayment. Federal recapture tax may apply on sale within 9 years (reimbursed by OHFA).
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

OHFA Mortgage Tax Credit (MTC) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

OHFA Mortgage Tax Credit (MTC) sets its income limit as follows: Must meet OHFA income limits, which vary by county, household size, and target/non-target area status (see OHFA Income and Purchase Price Limits by County).

• The limit applies to total household income, not only the borrower’s.
• 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 Mortgage Tax Credit (MTC) caps the purchase price as follows: Must meet OHFA purchase price limits, which vary by county and target/non-target status (see OHFA limits PDF).

• Eligible property types include Single Family, Condo, 2-4 Unit, Manufactured, and Modular.
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

OHFA Mortgage Tax Credit (MTC) serves buyers purchasing anywhere in Ohio.

• The program targets specific areas: Federally designated target areas exist in Ohio; the first-time homebuyer requirement is waived, higher income/purchase price limits apply, and the MTC Basic credit rate is 20% (vs. 15% in non-target areas).

How do you apply?

Applications for OHFA Mortgage Tax Credit (MTC) go through Ohio Housing Finance Agency (OHFA), 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 Any HUD-approved counseling agency in Ohio via OHFA's Homebuyer Education Portal (hbe.ohiohome.org); not required for MTC Basic-only borrowers..

2. 2

   Contact Ohio Housing Finance Agency (OHFA) to reserve funds

   Funds are reserved through Reserved/registered through an OHFA-approved lender; application submitted with the closing package. Applications paused 5/13/2026, expected to reopen 7/1/2026., 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.