First Time Home Buyer

 Programs in Ohio

Complete First Time Home Buyer Programs Available in Ohio.

The state agency created by the legislature in Ohio to offer first time home buyer programs is the Ohio Housing Finance Agency. Here is a summary of the current first time home buyer programs that are offered:

My Ohio Mortgage highlights

Minimum homebuyer out of pocket
Fixed interest rate
1 percent origination; zero discount points
Loan-to-value up to 100 percent
Less than perfect credit histories and nontraditional credit accepted
Section 8 homeownership vouchers accepted as income
Community Solutions™ option with additional flexibility for teachers, police officers, firefighters and health care workers

Down payment assistance

In addition, OHFA also offers down payment and closing cost assistance to eligible borrowers, which can greatly reduce their out-of-pocket expense. Homebuyers can choose between a down payment assistance grant in an amount equal to 2% of the home's purchase price, or a second mortgage in an amount up to 4% of the purchase price of the home secured by the first mortgage single family bond loan.

The 4% down payment assistance program is a second mortgage with a 20-year term. The interest rate for the second mortgage will be up to 2% higher than the related OHFA first mortgage. For example, 5% first mortgage and 7% second mortgage. The 4% second mortgage down payment assistance may only be used with an OHFA First-Time Homebuyer Program first mortgage.

Mortgage Credit Certificate Program

The Ohio Housing Finance Agency and local participating lenders together are offering the Mortgage Credit Certificate (MCC) Program—an initiative aimed at helping eligible homebuyers with the purchase of their homes.

How the program works
The MCC increases a household's disposable income by reducing its federal income taxes. A reduced tax burden will free up more income to help households qualify for a mortgage loan and meet loan payment requirements.

With an MCC, 20% (25% in targeted areas) of the mortgage interest is a tax credit—a dollar-for-dollar reduction of income tax liability for the life of the loan. The remaining 80% (75% in targeted areas) mortgage interest continues to qualify as an itemized tax deduction for the homebuyer.

For complete details on these first time home buyer programs available to Ohio residents, visit the Ohio Housing Finance Agency website.

It is highly recommend that you also visit the First Time Home Buyer Grants page for free assistance with the down payment. This will make it possible for many people to qualify for a first time home buyer loan who wouldn't have qualified without the grant assistance.

Best Lender For First Time Home Buyer Loans

Unfortunately, some lenders do not like to work with first time home buyers (due to not having a track record), and prefer instead to only provide mortgages to people who have previously owned a home. If you do not need help with the down payment and are not in need of any state program, but simply want to apply for a mortgage, we recommend  ING DIRECT Orange Mortgage They have great rates, an easy online application, and welcome first time home buyers. Additionally they have not been as severely hurt by the subprime mortgage crisis and are still approving the majority of applications.

Other First Time Home Buyer Programs & Resources