OHFA First-Time Homebuyer Loan First-Time Homebuyer Assistance Programs

OHFA First-Time Homebuyer Loan: A Roadmap for Ohio Newcomers to Homeownership

Buying your very first home can feel like driving through fog: you know the destination is there, but the path forward seems dimly lit. The OHFA First-Time Homebuyer Loan is Ohio’s high-beam headlight, cutting through uncertainty with lower interest rates, down-payment options, and step-by-step support. In the next few minutes you’ll discover who qualifies, how the application works, and why more than 202,000 Ohioans since 1983 have unlocked their front doors through the Ohio Housing Finance Agency.

What Is the OHFA First-Time Homebuyer Loan?

The OHFA First-Time Homebuyer Loan—sometimes called an OHFA loan—is a 30-year, fixed-rate mortgage product designed for Buckeye State residents who have not owned a primary residence in the past three years¹. Borrowers can pair it with down-payment assistance, tax credits, and specially trained lenders. The program is the cornerstone of OHFA’s mission “to open the doors to an affordable place to call home.”

Unlike many national products, this offering is uniquely tailored to Ohio’s median home price (about $232,000 as of early 2024) and local income benchmarks. That local flavor means you avoid one-size-fits-all rules that often leave Midwestern buyers behind.

People Also Ask

Who Qualifies for the OHFA First-Time Homebuyer Loan?

Eligibility hinges on three pillars: first-time status, income limits, and purchase price caps. First-time status is generous; if you’ve been renting for three years, you’re back in the game. Income maximums vary by county—$113,000 for a family of three in Franklin County, for example—while purchase price ceilings typically sit 20% above local FHA limits. Veterans and those buying in federally designated target areas may bypass the “first-time” rule altogether.

Credit-score guidelines start at 640 for conventional and 650 for FHA/USDA/VA structures. A recent OHFA internal report shows 82% of accepted applicants in 2023 had scores between 660 and 720, suggesting wiggle room if the rest of your application shines.

How Much Can I Get for Down-Payment Assistance?

Through the YourChoice! Down Payment Assistance add-on, you can receive 2.5% or 5% of the home’s purchase price—up to $8,000—as a forgivable loan. Repay nothing if you stay in the home seven years; move sooner and you’ll reimburse a prorated slice. This feature effectively shrinks a $9,000 required down payment on a $225,000 home to as low as $500 out of pocket, a game-changer for renters juggling student loans or childcare costs.

How Do I Apply for the OHFA First-Time Homebuyer Loan?

OHFA doesn’t accept applications directly. Instead, you work with an OHFA-approved lender, roughly 140 banks and credit unions statewide. The process runs parallel to a standard mortgage but adds two vital checkpoints:

1. Complete a free homebuyer education course—either online through eHomeAmerica or in-person with a HUD-certified counselor.
2. Sign the OHFA Borrower Affidavit, verifying you meet first-time or target-area requirements.

Turnaround times sit near 35 days, only three days longer than conventional loans according to a 2023 Freddie Mac benchmark. That extra cushion covers OHFA’s compliance review, so build it into your purchase contract.

Benefits No One Tells You About

• Mortgage Credit Certificate (MCC): A dollar-for-dollar federal tax reduction worth up to 40% of your annual mortgage interest (max $2,000). Claim it every year, not just at closing.
• Rate Shield: Lock today’s rate for 90 days while you shop. With Fed policy zigzagging, that shield can save thousands.
• Layering Allowed: Combine the OHFA First-Time Homebuyer Loan with city grants such as Cincinnati’s $5,000 Homebuyer Assistance Program—synergy rarely permitted with private mortgages.

A Micro-Story From Marion, Ohio

Marisol, a 27-year-old nurse, was paying $1,250 monthly for a two-bedroom apartment overlooking an alley. She discovered the OHFA First-Time Homebuyer Loan during a lunch-and-learn. Six months later, she purchased a 1,600-square-foot ranch for $189,000. Her new mortgage payment? $1,078, including taxes and insurance. She jokes that switching from alley cats to backyard robins feels like trading static for Spotify. More importantly, she’s building equity instead of renewing a lease.

Pros & Cons Table

Step-by-Step Checklist

1. Download OHFA’s Quick Reference Guide (PDF) to confirm county income limits.
2. Pull a free credit report; resolve errors before pre-approval.
3. Select an OHFA-approved lender and request a pre-qualification letter.
4. Complete homebuyer education—the certificate stays valid for 12 months.
5. House hunt with a real-estate agent aware of OHFA timelines.
6. Lock your rate and sign the Borrower Affidavit.
7. Schedule appraisal & underwriting; gather pay stubs, W-2s, bank statements.
8. Close, move in, and enjoy seven years of zero DPA payments.

Cost Comparison: OHFA vs. Conventional 3%-Down Loan

Assume a $230,000 purchase price and a 6.4% market rate:

• Conventional Loan: 3% down = $6,900 upfront; monthly P&I ≈ $1,390.
• OHFA Loan + 5% DPA: $0 effective down; discounted 5.9% rate; monthly P&I ≈ $1,363.

That’s $27 saved each month and nearly $7,000 kept in your savings account—enough for a rainy-day fund or fresh appliances.

FAQ

Is an OHFA First-Time Homebuyer Loan the same as FHA?
No. FHA is a federal mortgage insurance program. OHFA loans can be FHA, VA, USDA, or conventional, but always carry OHFA’s added benefits.

Can I use gift funds with the program?
Absolutely. Gifts may cover closing costs or supplement down-payment assistance, provided they follow standard sourcing rules.

What if I refinance within seven years?
Any remaining balance on your forgivable DPA becomes due at closing, prorated to the month.

Do manufactured homes qualify?
Yes, if they meet HUD’s foundation and age criteria and the lender allows it.

Is there a penalty for early payoff?
None. Like most modern mortgages, OHFA loans skip prepayment penalties.

Ready to Claim Your Keys?

Every hometown in Ohio—from Akron’s leafy boulevards to Zanesville’s rolling hills—holds a porch light waiting to flicker on for you. The OHFA First-Time Homebuyer Loan places that dream within arm’s reach. If you’re ready to swap rent receipts for mortgage statements that build equity, connect with an OHFA-approved lender today and start your free homebuyer education course. By this time next month, that “future address” sticky note on your fridge could become GPS reality.

Need a referral to a lender or a HUD-certified counselor? Visit OHFA’s official First-Time Homebuyer page or call their hotline at 888-362-6432 to kick-start your journey.