First-Time Home Buyer Programs in Ohio

Ohio Housing Finance Agency (OHFA) Programs:

Your Choice! Down Payment Assistance:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years), veterans, or buyers in targeted areas.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with competitive rates; can be paired with down payment assistance.
Requirements:

• Income must not exceed county-specific limits (e.g., $114,240 for a 1-2 person household in Franklin County as of 2025).
• Minimum credit score of 640 (650 for FHA loans).
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required.
• Purchase price limit of $349,525 (non-targeted areas) or $427,198 (targeted areas).

Down Payment Assistance: Offers 3% of the home’s purchase price for conventional loans or 3.5% for FHA/VA/USDA, as a 0% interest forgivable second mortgage forgiven after 7 years.

Grants for Grads:

Benefits: Offers 3% (conventional) or 3.5% (FHA/VA/USDA) of the purchase price as a forgivable loan (forgiven after 5 years if buyer stays in Ohio); available to recent graduates.
Eligibility: Must use an OHFA first mortgage; must have graduated within the past 48 months with an associate’s, bachelor’s, or advanced degree; income limits apply.

Ohio Heroes:

Description: Provides a 30-year fixed-rate mortgage with a reduced interest rate and access to down payment assistance for veterans, active military, teachers, healthcare workers, and first responders.
Requirements: Must meet OHFA income and purchase price limits; proof of eligible occupation or service required; credit score of 640.

Local Programs:

Columbus

American Dream Downpayment Initiative (ADDI): Offers up to $14,999 as a deferred loan (0% interest, due upon sale or refinance) for down payment and closing costs; income must be at or below 80% AMI (e.g., $66,750 for a family of four).

Cleveland

Cleveland Homebuyer Assistance: Provides up to $20,000 as a forgivable loan (forgiven after 10 years) for down payment and closing costs; income capped at 80% AMI; targets revitalization areas.

Cincinnati

Cincinnati Down Payment Assistance: Offers up to $14,000 as a forgivable loan (forgiven after 5 years) for down payment and closing costs; income must be below 80% AMI.

Additional Information:

• Mortgage Tax Credit (MTC): Provides a federal tax credit of up to 40% of annual mortgage interest (max $2,000 yearly) for first-time buyers; fee applies; combinable with OHFA loans.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural Ohio areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.