OHFA First Time Homebuyer Program
First time homebuyers can qualify for the OHFA loan with a credit score as low as 600, and a low down payment as little as 1% of the purchase price. Applicants for the program must stay within the established income limits, which can be found here. The property being purchased must stay within price limits, as well. The purchase price limits can be found here.
In order to qualify for this program borrowers have either never owned real estate before, or have not owned a principal residence within the last three years, or anyone buying a home in a target area. For target area information, please visit http://www.ohiohome.org/homebuyer/target.aspx All borrowers must meet underwriting requirements.
Eligible properties include one to four-unit residential properties. Also eligible are single family manufactured homes permanently affixed to a foundation. Properties are limited to two acres unless additional acreage is required by local health or safety code.
Loan fees and closing costs
The loan fees associated with OHFA loans include a loan 1% origination fee, $150 transfer fee, a $79 tax service fee, $245 underwriting fee, $450 commitment fee, $66.90 MERS/4506T/VOE, and $175 doc prep fee.
Items required to be submitted with your loan application
Information required to submit with your mortgage application includes:
- Copy of Purchase Contract
- Your driver’s license
- Federal tax returns and w-2’s from the past 3 years.
- Paycheck stubs for the most recent 30 days
- Your 2 most recent asset account statements, all pages are required.\
- If applicable, all schedules of bankruptcy paperwork and discharge.
- If applicable, divorce decree and child support documentation all supporting documents.
- Current landlord contact information
Down Payment Assistance
If you require a grant from OHFA’s down payment assistance program you will be required to go through a homebuyer education course, and will be able to get a 2.5% grant to help meet the requirement of FHA’s 3.5% minimum down payment. Those wishing to take advantage of this grant will be required to pay .5% higher interest rate than those not using the program.
Visit OHFA’s website for information on the maximum purchase price and an income limits.
Ohio Heroes Program
The Ohio Heroes Program is available full-time employees in the following fields:
Active Military, Active Reserve, and Veterans
Firefighters
Emergency Medical Technicians or Paramedics
Health care workers , including medical resident or fellow, dental hygienist, nurse, nursing assistant, pharmacist, pharmacy technician, physician’s assistant, medical technician, technologist, or therapist.
Police officers of federal, state, county, municipal or township government
Full-time teachers. Qualifying participants will teach a minimum of 12 credit hours per academic term.
Special rates apply for Ohio Heroes.
Grants for Grads
The Grants for Grads program enables first-time homebuyers who have graduated from high school or have a GED as well as have earned an associate’s, bachelor’s or postgraduate degree within the last 24 months, a grant in the amount of 2.5% home’s purchase price. The grant can be used to pay for the down payment or settlement charges involved in a purchase transaction.
Please note that the Grant for Grads program does not increase the interest rate on an OHFA loan, unlike the down payment assistance grant previously discussed. Grants in either case are a 2nd mortgage on your house with zero interest and no payment due. The grant is entirely forgiven after you have been in the home for 5 years. If you move out or sell the home within 5 years, a pro-rated portion of the grant is required to be repaid.
It is required for participants to complete a free homebuyer education course through HUD or the OHFA streamline education program. For more information visit www.ohiohome.org
If you are interested in the Grants for Grads program and would like more information please contact me today.
Mortgage Credit Certificate (MCC) Program
The MCC program is an income tax deduction that reduces a homebuyer federal income tax liability and allows the household to have more available income to make mortgage payments. The MCC program reduces a homebuyer’s federal tax income for the life of their mortgage loan. With an MCC, 20% to 30% of your interest paid on your mortgage can be deducted dollar-for-dollar from your income tax liability. 20% of your mortgage interest is a tax credit for non target areas, 25% for target areas, and 30% when purchasing a bank owned, HUD, Fannie Mae, Freddie Mac, VA or USDA property. The remaining 80% to 70% of your mortgage interest continues to qualify as an itemized tax deduction, as long as you have sufficient tax liability. The MCC Program cannot be used in conjunction with the First-Time Homebuyer Program, but can be used in conjunction with a conventional, FHA, USDA or VA loan.
In order to qualify for the MCC, you must either be a first time homebuyer, someone who has not owned or had an ownership interest in a principal residence in the last three years, purchase a home in a USDA target area, or be a military veteran who has received an honorable discharge.
For additional information about the MCC program please visit www.ohiohome.org , and feel free to contact me with any questions.
