What is the Ohio Grants for Grads Program?
The Ohio Grants for Grads Program provides affordable, fixed-rate mortgage options and down payment assistance to recent college graduates who plan to buy a home in Ohio.
Who qualifies for the Grants for Grads Program?
Eligibility is open to individuals who have graduated from an accredited college or university within the past 48 months. Applicants must meet income, credit, and property requirements and plan to use the home as their primary residence.
Does the program offer down payment assistance?
Yes, the program provides 2.5% or 5% of the home’s purchase price as down payment and closing cost assistance.
Is the down payment assistance a loan or a grant?
The assistance is a forgivable loan, which is forgiven after five years as long as the buyer remains in Ohio and meets program requirements.
What is the minimum credit score required for the program?
A minimum credit score of 640 is generally required, although higher scores may improve eligibility and loan terms.
Are there income limits for the Grants for Grads Program?
Yes, income limits apply and vary based on household size and property location. These limits are updated annually to reflect market conditions.
What types of properties are eligible for the program?
Eligible properties include single-family homes, townhouses, and condominiums. Manufactured homes may qualify if they meet program guidelines and are permanently affixed to a foundation.
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Get Started NowCan the program be used for newly constructed homes?
Yes, newly built homes are eligible as long as they meet program requirements and are intended to be the buyer’s primary residence.
Is homebuyer education required for the Grants for Grads Program?
Yes, completing a homebuyer education course is mandatory to ensure buyers understand the responsibilities of homeownership and the program’s benefits.
What is the maximum purchase price allowed under the program?
The maximum purchase price is typically capped at $400,000, though it may vary based on the property’s location.
Can the Grants for Grads Program be combined with other assistance programs?
Yes, the program can be combined with other state or local assistance programs, such as the Your Choice! Down Payment Assistance Program, for additional financial benefits.
Are there debt-to-income (DTI) ratio limits for the program?
Yes, the program typically allows a maximum DTI ratio of 45%, though exceptions may apply depending on other financial factors.
What fees are associated with the Grants for Grads Program?
Standard loan-related fees, such as origination, appraisal, and closing costs, may apply. Borrowers should confirm these costs with their lender.
What happens if I move out of Ohio before the loan is forgiven?
If you move out of Ohio before the five-year forgiveness period ends, a prorated portion of the assistance must be repaid.
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Get Started NowCan the program be used to refinance an existing home?
No, the Grants for Grads Program is designed specifically for purchasing a primary residence and does not apply to refinancing.
Are there reserve requirements for the program?
No specific reserve requirements are mandated, but having financial reserves may strengthen an applicant’s overall loan profile.
Are there location restrictions for the program?
Yes, the property must be located in Ohio, and additional guidelines may apply depending on whether the home is in a targeted or non-targeted area.
What are the benefits of the Grants for Grads Program?
The program provides affordable mortgage rates, forgivable down payment assistance, and incentivizes recent graduates to establish homeownership in Ohio.
How do I apply for the Grants for Grads Program?
Applicants must meet eligibility requirements and work with a program-approved lender who will guide them through the application process.
What is the loan term for the assistance provided under the program?
The assistance is structured as a forgivable loan with a term of five years, provided all program conditions are met.