What is the Ohio OHFA First-Time Homebuyer Program?
The Ohio OHFA First-Time Homebuyer Program offers affordable, fixed-rate mortgages and optional down payment assistance to help eligible individuals purchase their first home.
Who qualifies for the OHFA First-Time Homebuyer Program?
Eligibility is open to first-time homebuyers, defined as individuals who have not owned a home in the past three years. Certain exceptions apply for veterans and homebuyers purchasing in targeted areas.
Does the program offer down payment assistance?
Yes, the program provides down payment assistance to help eligible buyers cover upfront costs, such as the down payment and closing expenses.
Is the down payment assistance a loan or a grant?
The down payment assistance is a forgivable loan, which does not need to be repaid if the homeowner meets program conditions and remains in the home for seven years.
What is the minimum credit score required for the program?
A minimum credit score of 640 is generally required, though higher scores may improve eligibility and loan terms.
Are there income limits for the OHFA First-Time Homebuyer Program?
Yes, income limits apply and vary by household size and property location. These limits are updated annually to reflect current economic 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 OHFA First-Time Homebuyer Program?
Yes, completing a homebuyer education course is mandatory to ensure buyers understand the responsibilities of homeownership and the benefits of the program.
What is the maximum purchase price allowed under the program?
The maximum purchase price is typically capped at $400,000, although this may vary based on the property’s location.
Can the OHFA First-Time Homebuyer Program be combined with other assistance programs?
Yes, eligible buyers can combine this program with other state and local assistance programs, such as the Your Choice! Down Payment Assistance Program, for additional support.
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 qualifying factors.
What fees are associated with the OHFA First-Time Homebuyer 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 sell or refinance my home before the loan is forgiven?
If you sell or refinance before the seven-year forgiveness period ends, a prorated portion of the down payment assistance may need to be repaid.
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Get Started NowCan the program be used to refinance an existing home?
No, the OHFA First-Time Homebuyer Program is designed to assist with 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 based on whether the home is in a targeted or non-targeted area.
What are the benefits of the OHFA First-Time Homebuyer Program?
The program provides affordable mortgage rates, forgivable down payment assistance, and access to homebuyer education, making homeownership more attainable for first-time buyers.
How do I apply for the OHFA First-Time Homebuyer 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 OHFA First-Time Homebuyer Program?
The program provides a 30-year fixed-rate mortgage, offering predictable monthly payments and long-term affordability for homebuyers.