First-Time Homebuyer Assistance Programs for 2022 in Ohio

Last Updated on August 7, 2022 by Danielle McDonald

Mortgage Assistance for Homebuyers in Ohio

City of Columbus American Dream Downpayment Initiative (ADDI) Program

Through the American Dream Downpayment Initiative (ADDI), Columbus offers assistance to first-time homebuyers in buying their first house.

Available Assistance

The ADDI Program funds are given as a deferred, forgivable loan which can be used to pay the down payment or closing costs. However, these funds are limited in number, and will only be made on a first-come, first-serve basis. A maximum loan of $5,000, 6% of the purchase price of the home, may be available to households whose income falls below 80% of the Area Median Income (AMI) according to the U.S. Department of Housing and Urban Development (HUD). The mortgage and restrictive covenant are released, so the loan can be forgiven after the five-year period. In addition, this program can be used together with the Housing Development Program (HDP).

Eligibility Requirements

The applicant must be a first homebuyer and meet the income requirements in order to qualify for the ADDI program. They also need to receive homebuyer education from a Housing Division HUD Certified Agency, and buy a property within Columbus, Columbus City School of District. Additionally, the applicant must have a minimum of 35% debt-to-income ratio, and 45% total debt/income ratio calculated based on City income and debt to qualify.

Furthermore, all buyers must contribute $500 of their own money to the purchase price of the home. The $500 cannot be given or borrowed from anyone else than the buyer.

Income Limits

  • 1-person household: $43,700
  • 2-person household: $49,950
  • 3-person household: $56,200
  • 4-person household: $62,400
  • 5-person household: $67,400
  • 6-person household: $72,400
  • 7-person household: $77,400
  • 8-person household: $82,400

Bowling Green Housing Programs

Income eligible applicants have the option to apply for housing programs to help them afford homes in the city of bowling green.

Available Assistance 

There are seven different housing programs available in the City of Bowling Green, and some of these are: Down Payment Assistance and the Down Payment Assistance/Rehabilitation programs that are funded through the City’s Housing Revolving Loan Fund (RLF). The programs assist very low, low, and moderate income households in the city.

Income Limits 

  • 1-person household: $40,250 
  • 2-person household: $46,000 
  • 3-person household: $51,750
  • 4-person household: $57,500 
  • 5-person household: $62,100 
  • 6-person household: $66,700 
  • 7-person household: $71,300 
  • 8-person household: $75,000 

Communities First Down Payment Assistance Program

This program helps with first mortgage financing, down payment, and closing cost to eligible home buyers in the Port

Available Assistance 

The assistance funds are meant to give borrowers an instance equity for their home. This is because it comes in the form of a grant. Additionally, there are also no restrictions if you plan to resell your home or refinancing your mortgage. The 3, 4, or 5% down payment assistance gives the borrowers more flexibility to keep interest rates low.

Eligibility Requirements 

Individuals have the requirement to apply through a participating lender to become eligible for the program. The program does not have maximum income limits but they have a maximum debt-to-income ratio of 45%. However, this is conditional. They also have a minimum FICO credit score of 640. The applicant should also be occupying the property as their principal residence within 60 days.

Cuyahoga County Down Payment Assistance Program

This assistance program helps first-time home buyers with their upfront costs of purchasing a home.

Available Assistance

The assistance program provides 17% of the total purchase price, with an additional 5% purchase price for closing costs. Then, a deferred mortgage loan, where the 50% of its cost will be forgiven, is for the down payment assistance. The house to be purchased should also be under the eligible cost. Additionally, the assistance does not have to be repaid unless you’re selling the house or you’re transferring. 

Eligibility Requirements

Applicants should be first-time home buyers, and have not owned a home in the past 3 years. They should have an annual household income that doesn’t exceed the limits of the program, and payment of taxes is a requirement. Additionally, the first mortgage’s loan-to-value should not exceed 80%. The overall DTI ratio cannot exceed 43% and the housing DTI should not exceed 28%. The applicant’s liquid assets, after thrift 3% contribution for the total transaction, should also not exceed $7,500 or six months PITI whichever is greater.

Property Guidelines

The applicant should only purchase homes to be their primary residence. Existing or newly constructed single-family homes, occupied by the seller, or has been vacant for at least 90 days before closing are all eligible properties. Additionally, there is an inspection of the properties for any code violations and for defective paint. However, the buyer can correct those code violations or defective paint before occupying the house. Then, the HUD purchase price is now $129,000.

Income Limits

  • 1 person household: $38,050
  • 2 person household: $43,450 
  • 3 person household: $48,900
  • 4 person household: $54,300
  • 5 person household: $58,650 
  • 6 person household: $63,000
  • 7 person household: $67,350 
  • 8 person household: $71,700 

This is similar to the Down Payment first-time homebuyer assistance programs in North Dakota.

Dayton Down Payment Assistance Program

Eligible, first-time home buyers have the possibility to receive up to 10% of their new home’s purchase price for down payment and closing costs because of the partnering of the HomeOwnership Center and the City of Dayton.

Available Assistance

The assistance program will provide 10% of an eligible first-time home buyer’s new home’s purchase price. The assistance is a zero-interest, deferred second mortgage. It will only be repaid when the property is sold or refinanced, ownership is transferred, owner leaves the house, property becomes a rental or investment property. The program follows a first-come, first-served basis because their funds have limitations. 

Eligibility Requirements

The first-time home buyers should have a total household income at or below 80% of area median income. There’s also a requirement of $500 contribution of the applicant’s own funds to close on the home. It’s also a requirement to complete and submit the application along with the required documents. The pre-purchase appointment with a Homeownership Advisor and a Homebuyer Class through the HomeOwnership Center is also a requirement.

Property Guidelines

HomeOwnership Center Greater Dayton will conduct a mandatory inspection of the housing code. All problems must be addressed before purchasing. The program allows for one or two units of owner-occupied primary residences, as long as they are within the City of Dayton’s municipal boundaries.

Income Limits

  • 1 person household: $35,650
  • 2 person household: $40,750
  • 3 person household: $45,850
  • 4 person household: $50,900
  • 5 person household: $55,000
  • 6 person household: $59,050
  • 7 person household: $63,150
  • 8 person household: $67,200

Toledo Down Payment Assistance

Toledo offers assistance with down payments to eligible homebuyers who are looking for affordable and safe housing within its limits.

Available Assistance 

First-time homebuyers whose income is below the threshold may be eligible for $7,500 towards the purchase of a house and up to $9,000.50 in targeted neighborhoods.

Eligibility Requirements

The buyer must not own or have previously owned a house in the last three years. It’s also important that the existing residential property should be safe and decent. The program only allows single-family homes or condominiums. Homebuyers must also contribute at least $500, which includes the payment of a home inspection. A HUD-approved agency must first provide homeownership counseling. The participating lender must submit a Home At Last application for the home buyer. Next, the assistance will be provided at closing for the home purchase. The City will provide visual paint inspections by licensed lead risk assessors.

Income Limits 

  • 1-person household: $39,450 
  • 2-person household: $45,050 
  • 3-person household: $50,700 
  • 4-person household: $56,300 
  • 5-person household: $60,850 
  • 6-person household: $65,350 
  • 7-person household: $69,850 
  • 8-person household: $74,350 

Your Choice! Down Payment Assistance Program

The Ohio Housing and Finance Agency offers Your Choice! Qualifying homeowners can receive assistance with down payment. Additionally, the homeowner can choose to receive assistance up to 2.5 percent or 5 percent of their loan amount. Then, you can use this assistance for closing costs or down payments.

Available Assistance

This plan allows homeowners to choose between assistance up to 2.5 percent or 5 percent of their loan amount. You can use the assistance towards closing costs or down payments. Additionally, Repayment for the down payment assistance is not a requirement. It can be forgiven entirely after seven years.

Eligibility Requirements

To be eligible for Your Choice, applicants must meet certain conditions. Program for Down Payment Assistance. They must also meet OHFA’s income and purchase price limits. However, these limits vary from one county to the next. Then, credit scores of 640 and higher are required for applicants applying for conventional, USDA, VA, or FHA203(k) loans, FHA 203(b), the minimum acceptable score, is 660.

All home buyers must sign a Purchase Agreement and all homebuyers who qualify must complete a homebuyer education course. The OHFA homebuyer education’s completion happens once the buyer submits their loan request to their loan officer. However, they may have additional requirements for certain homeownership products.

Property Guidelines

Individuals can only purchase qualifying property within a municipality of two acres and outside the municipal corporation of five acres, unless the local health or safety codes require additional land. The following types of property are eligible:

  • Existing homes include single-family dwellings as well as conforming condominiums and duplexes.
  • One-unit, single-family homes that are nearly completed or newly built.
  • Modular homes; single-family, one-unit modular homes

Are you interested in the First-Time Homebuyer Assistance Programs in Oklahoma?

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