Down Payment Path

Down Payment Assistance Programs in Ohio

Ohio provides several programs to help homebuyers manage the upfront costs of purchasing a home. These initiatives are designed to make homeownership accessible to both first-time and repeat buyers across the Buckeye State.

Your Choice! Down Payment Assistance Program

The Your Choice! Down Payment Assistance Program, offered by the Ohio Housing Finance Agency (OHFA), provides flexible financial support for down payment and closing costs.

  • Offers 2.5% or 5% of the home’s purchase price as assistance.
  • Funds are provided as a forgivable loan, forgiven after seven years of continuous residency.
  • Pairs with OHFA’s affordable mortgage products, including FHA, VA, USDA, and conventional loans.
  • Available to eligible buyers meeting income and purchase price limits.

Grants for Grads Program

The Grants for Grads Program offers down payment assistance tailored for recent college graduates purchasing their first home or upgrading.

  • Provides up to 5% of the home’s purchase price for down payment and closing costs.
  • Funds are forgivable after five years if the buyer remains in the state.
  • Designed to encourage graduates to settle in Ohio and contribute to local communities.

USDA Rural Development Loans

For buyers in rural areas of Ohio, the USDA Rural Development Loan offers affordable financing with no down payment required.

  • Open to low- and moderate-income buyers in USDA-eligible rural areas.
  • Features competitive interest rates and flexible credit requirements.
  • Can be combined with OHFA assistance programs to cover closing costs.

Mortgage Tax Credit (MTC)

The Mortgage Tax Credit (MTC) program provides significant tax benefits for homebuyers, reducing the long-term cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their mortgage interest paid annually.
  • Can be paired with OHFA loans and other down payment assistance programs.
  • Income and purchase price limits apply but accommodate a wide range of buyers.

Local Assistance Programs

Many cities and counties in Ohio offer additional resources to help buyers with upfront costs.

  • Programs in areas like Columbus, Cleveland, and Cincinnati often include grants or low-interest loans for down payments and closing costs.
  • Some initiatives target buyers in revitalization zones or offer benefits for specific professions, such as teachers and first responders.
  • Eligibility and funding levels vary based on location and program specifics.

Ohio’s down payment assistance programs are designed to reduce financial barriers, making homeownership more attainable for a broad range of buyers. Whether you’re purchasing your first home or upgrading, these resources can help you achieve your goal of owning a home in the Buckeye State.