First Time Home Buyer Incentives – Worthington Ohio

The Ohio Finance Housing Agency (OHFA) offers a First-Time Home Buyer Program that has allowed “thousands of low- and moderate-income Ohioans” to purchase homes in recent years, according to the website. The program offers competitive interest rates and mortgage options on 30-year fixed-rate mortgage loans that have made it possible for first time home buyers to purchase a home. Before we talk about first time home buyer incentives, let’s see who qualifies as a first time home buyer…


So, do you qualify?

OHFA require that applicants for the First-Time Homebuyer Program must meet income limits and properties must meet purchase price limits. *These limits vary by region.

OHFA stipulates that to qualify for one of their home loans, you must meet at least one of the four qualifying categories:

-You have never owned real estate

-You have not owned or had an ownership interest in your principal residence in the last three years

-You are a qualified military veteran

-You must purchase a home in a target area

 

Additionally, borrowers must meet all of the following three criteria:

Borrowers not using OHFA Down Payment Assistance must have a credit score of at least 620. Borrowers using OHFA Down Payment Assistance must have a credit score of 640 or higher

-Buyers must have a signed Purchase and Sales Agreement for a qualifying property

-Buyers must qualify for the loan being requested. Qualification will be assessed by lenders who will consider your income, assets, job stability, liabilities, and other criteria

 

Additional property requirements for an OHFA loan include:

-Within a municipal corporation properties are limited to two acres, outside a municipal corporation properties are limited to five acres (unless additional land is required by local health or safety code).

-Qualifying properties include:

-Existing homes: single-family dwellings, conforming condominiums, duplexes, and up to four-unit properties

-Newly built spec/nearly completed homes: one-unit single-family dwellings

-Modular/manufactured (mobile-style) homes: one-unit single-family dwellings, permanently affixed to a foundation

 

How to Apply

OHFA works with many Ohio lenders including banks, mortgage companies, and credit unions. Visit their website for more information.

 

OHFA Loan Types

-Fannie Mae conventional loans with special features and flexible terms

-Government-insured loans including traditional FHA, VA, USDA-RD, and 203-k (and streamline) loans

-203(k) loans

-Certain weatherization options

 

Loan Features/Benefits

-Both new and existing homes qualify

-30-year fixed interest rate available

-Flexible rate options

-Available in all Ohio counties

-Generous purchase price and income limits

 

Loan Fees

OHFA states that these following fees could apply to your loan:

-1% origination fee

-$200 funding fee

-$85 tax service fee

 

Down Payment Assistance

OHFA offers two options to assist first time homebuyers with down payment costs

-A Down Payment Assistance Grant

-A Grants for Grads Second Mortgage Program (if you are a recent graduate)

 

Contact Information:
Office of Homeownership
Ohio Housing Finance Agency
57 East Main Street
Columbus, Ohio 43215
888.362.6432

 

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