Homeownership rates for first-time buyers have been on the rise but so have home prices. This creates an incredibly competitive housing market for first-time homebuyers. As your partner in making home possible for Ohioans, the Ohio Housing Finance Agency (OHFA) has resources that can empower first-time homebuyers and put their dreams of homeownership within reach.
OHFA's comprehensive Homebuyer Guide provides resources and planning tools Ohioans need when they start their homeownership journey. It includes a step-by-step overview of how to plan for and where to start the path toward purchasing a home. In addition to a glossary of terms that includes all the definitions future homebuyers should know, the Guide also includes a budget tracking sheet and checklist that covers everything from loan pre-qualification to what documents are needed at closing.
When you're ready to buy your first home – whether you need a hand to cover closing costs or are in search of lower interest rates – OHFA has products that can make the difference between staying put and moving into your own home.
OHFA's most popular program is OHFA Down Payment Assistance. The program provides 3% or 3.5% of a home's purchase price, depending on the type of loan, to help eligible homebuyers with a down payment or closing costs. Last year, we provided more than 5,000 Ohioans with the assistance they needed to close on their homes.
Future homebuyers who meet eligibility requirements are also eligible for a Mortgage Tax Credit (MTC) in addition to the IRS home mortgage interest deduction.
With an MTC certificate, first-time homeowners can get a percentage of the interest they pay on their mortgages back when filing their federal taxes for the first 30 years of their loan terms. Homeowners can maintain this credit even if they refinance as long as they refile their certificates. A credit come tax time could free up extra cash to reinvest into a new home!
For Ohioans that work in a public service field, like first responders (including some medical professionals) and educators, discounted mortgage interest rates are available through the Ohio Heroes program. This program may be paired with down payment assistance to make purchasing a home more affordable.
To unlock OHFA resources, use one of more than 140 OHFA-approved lenders. Find the full list of lenders by county here.
For a list of eligibility requirements, visit MyOhioHome.org/qualify. All first-time homebuyers must meet the following foundational criteria:
- Have a minimum credit score of 640 (Conventional, USDA, and VA loans) or 650 (FHA loans)
- Meet the debt-to-income requirements for their loan type
- Meet income and purchase price limits for the county they are seeking to buy in
You can be a more confident, informed buyer by getting to know resources available through the OHFA. Together, we can help make homeownership part of every Ohioan's future.
