Your Choice! Down Payment Assistance First-Time Homebuyer Assistance Programs

Your Choice! Down Payment Assistance: A 2024 Roadmap for Ohio First-Time Homebuyers

Buying a first home can feel like standing at the foot of a mountain—majestic, exciting, but intimidatingly steep. Ohio’s Your Choice! Down Payment Assistance program, administered by the Ohio Housing Finance Agency (OHFA), hands you the financial hiking poles you need to ascend that peak with confidence. In this guide, you’ll discover how the program works, who qualifies, what it costs, and clever ways to stretch the assistance even further. Grab your notepad; you’re about to chart a course to front-door ownership.

Table of Contents

1. How Does the Your Choice! Down Payment Assistance Program Work?
2. Who Qualifies for Your Choice Ohio First-Time Homebuyer Assistance?
3. Do You Have to Repay the Assistance, and When?
4. Can You Combine Your Choice with Other Grants and Tax Credits?
5. Why Your Choice May Beat Saving the Old-Fashioned Way
6. 8-Step Application Checklist
7. Real-Life Micro-Story: Danielle & Marcus from Toledo
8. FAQ
9. Next Steps: Secure Your Keys

How Does the Your Choice! Down Payment Assistance Program Work?

Picture Your Choice as a personalized gift card from OHFA: you receive either 2.5 % or 5 % of your home’s purchase price, wired straight into the closing table to cover your down payment or closing costs. Instead of emptying your savings—or maxing out credit cards—you leverage state-backed funds that act as a silent partner in your deal.

Key mechanics at a glance:

• Loan Type: 0 % interest, deferred second mortgage recorded against the property.
• Assistance Amount: Choose 2.5 % or 5 % of the home’s value up to $8,000 (whichever is lower).
• Usage: May cover down payment, closing costs, or both.
• Term: Forgivable after seven years of owner-occupancy.

Because the assistance behaves like a second mortgage, lenders count it differently than a grant, yet you make no monthly payments. The structure ensures you stay in the home long enough to stabilize the neighborhood—an often-overlooked policy goal. Talk about a win-win.

Ohioans leveraging Your Choice! Down Payment Assistance often shave months, even years, off their house-hunting timeline by neutralizing the biggest cash barrier.

Who Qualifies for Your Choice Ohio First-Time Homebuyer Assistance?

Eligibility rules look complex on the surface, yet they boil down to income, credit, and intent. Let’s untangle them:

Core Requirements

• First-time buyer status: No ownership interest in a primary residence in the last three years. Repeat buyers may qualify if purchasing in a “targeted” census tract—your lender can check.
• Income limits: County-by-county caps tied to household size (roughly $90,000–$120,000 for a family of four in many Ohio counties).
• Credit score: Minimum 640 for conventional, FHA, VA, or USDA loans (660 if manual underwriting).
• Homebuyer education: A free, HUD-approved course unlocks the funds and arms you with budgeting savvy.
• Primary residence: Must occupy the home within 60 days of closing and live there for seven years to avoid repayment.

Note the program is not limited to giant metro areas. From Athens to Zanesville, if you meet the criteria, you’re in the game. Combine those rules with the generous income brackets, and the pool of eligible Buckeyes is far larger than most assume.

Do You Have to Repay the Assistance, and When?

“Is there a catch?” clients often ask. The answer: only if you exit the home early. The 0 % second mortgage is forgiven at 20 % per year after year three, vanishing entirely at year seven. Sell or refinance sooner and you’ll repay only the unforgiven balance—no interest, no penalties. It’s a bit like a loyalty punch card; stay long enough, the cost evaporates.

Can You Combine Your Choice with Other Grants and Tax Credits?

Savvy buyers often create a funding “layer cake.” Your Choice! Down Payment Assistance stacks nicely with:

• OHFA’s Mortgage Tax Credit Plus (up to $2,000 per year in federal tax savings).
• Local city grants (e.g., Cleveland’s $10K first-time buyer grant).
• Employer-assisted housing perks.
• VA or USDA 100 % financing—use the assistance for closing costs.

Always disclose additional subsidies to your loan officer early, as overlapping sources can trigger compliance checks. When orchestrated properly, some buyers attend closing with less than $1,000 out of pocket—one even paid only the cost of home inspections and a pizza to celebrate.

Why Your Choice May Beat Saving the Old-Fashioned Way

Ohio’s median home price climbed roughly 7 % last year, according to MLS data aggregated by local Realtor boards. Meanwhile, bank savings accounts yield barely 0.5 %. If you’re stockpiling cash while prices outpace your returns, you’re running on a financial treadmill. Deploying Your Choice! Down Payment Assistance lets you capture today’s price and interest rate, converting would-be rent dollars into equity far sooner. Opportunity cost can be invisible, yet potent.

Consider these quick-hit advantages:

1. Speed: Shaves 12–18 months off the average saving timeline, based on OHFA case files.
2. Liquidity cushion: You keep emergency savings intact for car repairs, health bills, or—let’s be real—new paint.
3. Credit-profile friendly: No new lines of credit, which protects your score.
4. Built-in discipline: The seven-year forgiveness timeline nudges owners to hold through inevitable market dips, a proven wealth-builder.

8-Step Application Checklist

1. Download OHFA’s Participating Lender list and pick two for rate quotes.
2. Gather past two years’ W-2s, 30 days of pay stubs, and last two bank statements.
3. Complete the free OHFA homebuyer education module (approx. 90 minutes online).
4. Submit a pre-approval request mentioning “Your Choice! Down Payment Assistance 5 % option.”
5. Shop homes below OHFA price caps (varies by county, often $360,000).
6. Sign the purchase contract; lender locks your rate and uploads the Your Choice reservation.
7. Attend inspection and appraisal—keep an eye on closing cost estimates.
8. Bring government ID to closing, collect the keys, and update your new-home Spotify playlist.

Real-Life Micro-Story: Danielle & Marcus from Toledo

Danielle, a high-school teacher, and Marcus, a barcode technician, rented a 900-square-foot apartment for years. Every spring they watched property taxes fund local parks they rarely used. When their rent jumped $120 in 2023, they crunched numbers. A lender told them about Your Choice. Their combined income of $88,000 fit the Lucas County cap; Marcus’s 657 credit score squeaked by thanks to automated underwriting. They chose the 5 % option on a $225,000 bungalow—$11,250 in immediate help. Out-of-pocket at closing? $1,483. They move in next week, already planning a tomato garden.

FAQ

What credit score do I need for Your Choice Ohio?

Most lenders require 640; if using manual underwriting, target 660.

Is Your Choice only for single-family homes?

No. Condos, duplexes, and some manufactured homes qualify provided they meet FHA, VA, or conventional guidelines.

Can I use gift funds alongside Your Choice?

Yes, gift money is allowed and can cover any buyer contribution the lender still requires.

Does the assistance affect my debt-to-income (DTI) ratio?

Because it is a 0 % deferred loan, the payment is $0, so DTI is unaffected.

How long does approval take?

Lenders reserve funds instantly; final OHFA sign-off usually fits within standard 30-45-day closing windows.

Ready to Unlock Your Front Door?

If you’re serious about planting roots in Ohio this year, Your Choice! Down Payment Assistance is more than a program—it’s the fast lane to homeownership. Connect with an OHFA-approved lender today and ask for a “scenario run” to learn your exact out-of-pocket number. Then picture yourself grilling on your own patio instead of the apartment balcony that smells like last night’s take-out.

Need a referral to a lender who knows the ins and outs? Reach out to our team—helping Ohioans trade rent receipts for deeds is what we do best.