If you’re a low to moderate income, reside in Ohio, cannot afford down payments for the house you wanted to buy, you may qualify for Ohio down payment assistance programs. Down payment financing agencies also give monetary assistance to those who already have a lot but wanted to build a home, or if they wanted a mobile home for their lot or a mobile home to be placed in designated parks.
Aside from the income category requirement, the Ohio down payment assistance programs also give priority to active military personnel, veterans, senior citizens, people with disability, people who do not have a home, or who have not owned a real estate. They do not discriminate the borrower even they are of different race, color, religion, sex, physical ability, among others, which make the program very borrower-friendly. Borrowers should undergo seminar or training on housing programs being offered by the US government, so they will know their responsibilities as homeowners, as well as their duties as borrowers.
The Ohio down payment assistance program has very affordable interest rate, and they will grant a 2.5% to 3.5% of the total amount of your loan. Loans are set on your preferred payment modes, and have low closing costs. It is being monitored and regulated by the Federal Housing Administration and is insured to it for the safety of the borrower. It is the U.S Department of Housing and Urban Development’s program in cooperation with private house financing agencies, to provide affordable homes for Ohio residents, and for other states as well.
There are four main types of Ohio down payment programs:
- Loans that are similar to second mortgages that have to be paid at the same time as your first mortgage.
- Second mortgages that are paid when you move, sell, refinance or finish paying your first mortgage.
- Second mortgages that are forgiven over a set number of years or payments.
- Grants or monetary gifts that never have to be repaid.
Ohio Down Payment Assistance Programs
Your Choice! Down Payment Assistance allows homebuyers to choose either 2.5% or 5% of the home’s purchase price. Assistance can be applied towards down payments, closing costs or other pre-closing expenses. This assistance is forgiven after seven years. If you sell or refinance your home within seven years, you must repay all of the assistance provided.
Regardless of which type of down payment program, you will first need a mortgage. Below are mortgages that require low or no down payments:
No Down Payment Mortgages – mortgages that require no down payment
USDA Rural Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.
Low Down Payment Mortgages – mortgages that require up to 3.5% down payment
FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.
Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.
The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.
More places to find assistance on down payment:
The US Department of Housing and Urban Development (HUD) offers the following programs:
The Good Neighbor Next Door Program was created by U.S. Department of Housing and Urban Development (HUD) to help law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians buy homes. The biggest benefit of the Good Neighbor Next Door Program is the 50% discount of the home’s list price. The only catch is that the home owner must commit to live in the property for 36 months as their sole residence.
To learn more about the Good Neighbor Next Door Program, click here.
The Section 184 Indian Home Loan Guarantee Program is a mortgage for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. In 1992 Congress created this program to help Native American Communities with homeownership.
Section 184 loans helps borrowers buy homes with a low down payment and flexible underwriting. Moreover, the loan does not need to be used only on properties on native lands. Purchase of an existing home for single-family residences. Also allowed are new construction, rehabilitation, and refinance.
To learn more about Section 184, click here.
Ohio Housing Agencies
Ohio housing agencies are your best resource for down payment assistance programs. Through funding from HUD, the purpose of these agencies is to ensure that affordable housing is available for everyone.
- Ashtabula Metropolitan Housing Authority
- Akron Metropolitan Housing Authority
- Allen Housing Authority
- Cincinnati Metropolitan Housing Authority
- Clermont Metropolitan Housing Authority
- Cuyahoga Metropolitan Housing Authority
- Columbus Metropolitan Housing Authority
- Gallia Metropolitan Housing Authority
- Greene Metropolitan Housing Authority
- Dayton Metropolitan Housing Authority
- Knox Metropolitan Housing Authority
- Lake Metropolitan Housing Authority
- Lucas Metropolitan Housing Authority
- Medina Metropolitan Housing Authority
- Morrow Metropolitan Housing Authority
- Ohio Housing Authorities Conference
- Ohio Housing Authority
- Portage Metropolitan Housing Authority
- Stark County Metropolitan Housing Authority
- Trumbull Metropolitan Housing Authority
- Youngstown Metropolitan Housing Authority
- Ohio Housing Finance Agency