Your Guide to First-Time Homebuyer Programs Across Ohio

If you’re planning to buy your first home in Ohio, you’re in luck—the state offers numerous assistance programs designed to help you overcome financial barriers. Whether you’re buying with a modest income, transitioning from military service, or working in a critical profession, Ohio’s first-time homebuyer programs provide down payment support, favorable lending terms, and tax benefits to make homeownership more accessible.

Understanding OHFA’s Down Payment Assistance for First-Time Buyers

The Ohio Housing Finance Agency (OHFA) is the primary source of first-time homebuyer programs in the state. To qualify, you generally need to have a minimum credit score of 640, not have owned a primary residence in the past three years, and meet income requirements that vary by program.

The core OHFA offering provides traditional homebuyer loans with flexible terms. Working with participating lenders, OHFA delivers 30-year, fixed-rate mortgages available as:

• Conventional loans
• FHA-insured mortgages
• USDA rural property loans
• VA loans for military veterans

A key feature of OHFA’s “Your Choice!” Down Payment Assistance program is forgivable support. You can receive either 2.5% or 5% of your home purchase price to cover closing costs, down payment, and pre-closing expenses. The entire amount is waived after seven years of occupancy—but you’ll repay it if you sell or refinance early. Note that taking this assistance means accepting a higher interest rate, with the 5% tier carrying the steepest rates.

This creates an important decision point: comparing the higher mortgage rate against the benefit of reduced upfront costs. Running the numbers with current rates helps you determine if this trade-off makes financial sense.

Career-Based Benefits Through Ohio Heroes Program

If you work in education, emergency response, healthcare, or the military, the Ohio Heroes program might be your best path forward. This initiative reduces your interest rate by up to 0.25% compared to standard OHFA rates.

Qualifying occupations include:

• Education sector: Teachers (K-12), school administrators, and counselors
• Public safety: Police officers, firefighters (paid and volunteer), EMTs, and paramedics
• Medical field: Physicians, nurse practitioners, registered nurses, licensed practical nurses, and surgical technicians
• Military service: Active duty members, reserve component personnel, veterans, and surviving military spouses

You can combine the Ohio Heroes rate reduction with down payment assistance, though adding the assistance component results in a higher rate adjustment. Many professionals find this program valuable because the interest savings accumulate over a 30-year mortgage term.

Tax Credits and Interest Rate Savings for Ohio First-Time Homebuyers

Ohio offers two mortgage tax credit tiers that can significantly reduce your tax burden:

Mortgage Tax Credit Plus allows you to deduct up to 40% of your mortgage interest—capped at $2,000 in annual tax savings—on OHFA First-Time Homebuyer loans. These loans do carry higher interest rates, but borrowers can combine this benefit with 2.5% down payment assistance.

Mortgage Tax Credit Basic applies to loans obtained outside OHFA through traditional lenders. Depending on the property type, you can claim savings on 30% of interest (bank-owned properties), 25% (properties in designated target areas), or 20% (all other locations). Since this is a non-refundable credit, your actual benefit depends on your income tax liability.

The key advantage: this tax certificate stacks on top of any federal mortgage interest deductions you already qualify for, effectively doubling your tax benefit potential.

Local First-Time Homebuyer Programs in Ohio Cities

Beyond statewide initiatives, Ohio cities and counties provide additional assistance:

Columbus Area: The American Dream Downpayment Initiative (ADDI) serves residents with low to moderate incomes through a deferred, forgivable second mortgage. You can access up to 6% of the purchase price (maximum $7,500) for down payment and closing costs, with forgiveness after five years. Requirement: you must have lived in Ohio for at least six months before applying.

Greater Cleveland: Cuyahoga County’s Down Payment Assistance program supports homebuyers with income at or below 80% of area median income. Assistance reaches up to 10% of purchase price ($16,600 maximum), though the home purchase price cannot exceed $166,000. This appears as a deferred second mortgage requiring a minimum 3% down payment from you, and must be repaid if you sell or refinance.

Dayton and Surrounding Areas: The HomeOwnership Center partners with Dayton to offer flexible down payment assistance covering 10-20% of home purchase price for qualified buyers. While the city program itself doesn’t include loan forgiveness, partner organizations—Aloft Dayton and the Inclusive Community Fund—offer partial or full forgiveness after five years of ownership.

Grant Programs: Non-Loan Alternatives for First-Time Buyers

If you prefer assistance you won’t repay, Ohio’s grant programs may suit you better:

Grants for Grads targets recent college graduates with discounted interest rates and 2.5% or 5% down payment assistance. Full forgiveness occurs after five years—though early sale or relocation from Ohio triggers partial or full repayment obligation. You cannot access this program without accepting the down payment assistance component.

Communities First represents a more flexible grant structure. Offered statewide through the Port of Greater Cincinnati Development Authority, it provides 3-5% of home purchase price without strict residency requirements. Notably, you avoid penalties for selling or refinancing early, making this ideal if you’re uncertain about long-term homeownership plans. Income limits vary by county and use only individual borrower income rather than household income.

5 Steps to Access Ohio’s First-Time Homebuyer Support

The pathway to securing assistance involves a straightforward process:

1. Confirm Your Eligibility Review credit requirements (minimum 640, or 650 for FHA loans), debt-to-income ratio limits for your chosen loan type, and any county-specific income or purchase price caps. Most programs share these baseline criteria, though specific thresholds vary.

2. Gather Financial Documentation Prepare tax returns for the past two years, bank statements demonstrating savings history, and proof you meet the “first-time homebuyer” definition (typically not owning a primary residence in the past three years).

3. Select a Participating Lender Working with a lender that participates in your target assistance program streamlines the application. They can submit required paperwork directly once an offer is accepted, reducing your administrative burden.

4. Complete a Homebuyer Education Class All OHFA assistance programs require completion of a HUD-approved first-time homebuyer education course before closing. Online options are available through OHFA and partner agencies, offering flexibility around your schedule.

5. Execute Closing Documents After underwriting concludes, you’ll sign final paperwork and take ownership. Your lender coordinates this timing with the seller and title company.

Making Your Program Choice

Navigating Ohio’s first-time homebuyer programs means matching your situation to the best fit. Consider your occupation (educator, first responder, military), timeline and relocation plans, and comfort with higher interest rates in exchange for reduced upfront costs. The combination of statewide OHFA offerings, local initiatives across Columbus, Cuyahoga County, and Dayton, plus grant alternatives makes Ohio competitive for first-time homebuyer support.

Start by contacting OHFA directly or asking prospective lenders which programs align with your profile—most can pre-qualify you within days.