Many people are looking toward buying a house now more than ever. Some are prospective first-time buyers looking to make a smart investment; while others are simply looking for a larger house for their growing family. Luckily, Ohio has several financial programs available with different requirements to allow you, the prospective buyer, to choose the one that fits best.
Below are a few of Ohio’s most popular first time financial programs to bring you one step closer to owning a house.
Perhaps the most common first-time homebuyer program is the Down Payment Assistance Program. This option is available for first-time buyers in the form of a second mortgage of 2.5% or 5% of the purchase price. This is given as a 0% loan with 0 payments, and it can be forgiven after 7 years; however, if you sell, refinance, or transfer the house to another person or family, the loan must be paid back in full. The borrower of this program must have at least a 640 FICO credit score.
Another popular first-time home buyer program is called Grants for Grads. The borrower for this grant have a credit score of 640 or higher and be a recent (less than 24 months) graduate with an associate's, bachelor's, master's, or doctorate degree. You have the option of receiving a 2.5% or 5% grant which can be forgiven after 7 years. You are able to use this grant as assistance for your down payment or closing costs.
First-time buyers can also partake in the Mortgage Tax Credit Program. This program reduces federal income tax the homeowner owes and deducts up to 40% of the interest they pay on their mortgage. The maximum credit available for this program is $2,000.
While most programs have few requirements, most require the qualified buyer to participate in a free homebuyer education course.
These programs and others are designed to help transform your dreams into reality. To see if you’re qualified for a financial assistance program, please contact The Home Fitter Brenda Klein, with Scott Ross Realty.