Ohio First Time Home Buyer Loan Programs and Grants

Many first time buyers are excited to buy a home in Ohio with the generous down payment assistance, grants and competitive mortgage loan programs. Ohio’s housing market, with a median home price of $235,000 in the first three quarters of 2024, offers relative affordability compared to national averages, but the median down payment of $16,500 remains a significant barrier for first-time home buyers. New home buyers in Ohio are looking for grants and affordable mortgage loans to make the transition from renting to homeownership as smooth as possible. According to BankRate, rates on Ohio home loans remain competitive this year.

An Ohio first-time home buyer, per HUD guidelines, is someone who hasn’t owned a principal residence in the past three years, with exceptions for those purchasing in targeted areas, honorably discharged veterans, or certain public servants. The Ohio Housing Finance Agency (OHFA) and local programs provide grants and down payment assistance (DPA) to ease upfront costs. This article considers Ohio’s top 2025 first-time home buyer grants and DPA programs, includes reference links for state and local initiatives, presents two case studies, and ranks the top 10 OH lenders for home buyer grants based on participation and market presence.

2025 Ohio First-Time Home Buyer Programs and Grants

The OHFA administers Ohio’s primary home buyer programs, offering 30-year fixed-rate mortgages (FHA, VA, USDA, or conventional) paired with grants and DPA.

The eligibility typically requires a minimum credit score of 640 (650 for FHA, 620 for USDA/VA), a debt-to-income (DTI) ratio of 45–50%, completion of a HUD-approved homebuyer education course, and a minimum borrower contribution of 1% of the purchase price. Income limits range from $88,200–$141,000, and purchase price limits vary from $349,525–$453,100 by county.

The maximum loan amount is $806,500. Effective July 1, 2025, OHFA’s DPA will adjust to 3% for conventional Ohio home loans and 3.5% for government loans (FHA, VA, USDA).

1. OHFA YourChoice! Down Payment Assistance

The YourChoice! DPA offers 2.5% or 5% of the home’s purchase price (3% or 3.5% post-July 2025) as a forgivable second mortgage for down payment or closing costs. It pairs with OHFA’s FHA, VA, USDA, or conventional loans, requires a 640 credit score, and is forgiven after seven years if the home remains the primary residence. Repayment is required if sold or refinanced within seven years. Details at OHFA YourChoice!.

2. OHFA Grants for Grads

The Grants for Grads program provides a discounted mortgage interest rate and 2.5% or 5% DPA (3% or 3.5% post-July 2025), forgivable after five years, for first-time buyers who graduated within 48 months from an accredited college with an associate’s or higher degree. Repayment is required if the home is sold or the buyer leaves Ohio within five years. A 640 credit score and homebuyer education are required. Details at OHFA Grants for Grads.

3. OHFA Ohio Heroes Program

The Ohio Heroes Program offers a 0.25% mortgage rate discount and 2.5% or 5% DPA (3% or 3.5% post-July 2025), forgivable after seven years, for first-time buyers who are public servants (e.g., teachers, nurses, police, firefighters, EMTs, veterans, or active military). A 640 credit score and homebuyer education are required. Details at OHFA Ohio Heroes.

4. OHFA Mortgage Tax Credit (MTC)

The MTC Program provides a federal tax credit of up to 40% of annual mortgage interest (capped at $2,000) for first-time buyers or those in targeted areas. It pairs with OHFA loans (MTC Plus) or non-OHFA mortgages (MTC Basic, 30% credit). Income and purchase price limits apply, and a 640 credit score is required. Details at OHFA MTC.

5. OHFA Homebuyer Program

The Homebuyer Program offers 30-year fixed-rate FHA, VA, USDA, or conventional loans with relaxed income and purchase price limits for first-time buyers or those in targeted areas. It pairs with YourChoice!, Grants for Grads, or Ohio Heroes DPA, requiring a 640 credit score and homebuyer education. Details at OHFA Homebuyer Program.

6. Ohio Homebuyer Plus

Administered by the Ohio Treasurer’s Office, this program offers tax-advantaged savings accounts with above-market interest rates for down payments and closing costs. Accounts must maintain a $100–$500 minimum balance, not exceed $100,000, and be used within five years. Contributions are tax-deductible. Details at Ohio Homebuyer Plus.

Local OH First-Time Home Buyer Loan Incentives

1. Communities First Ohio Down Payment Assistance

Run by the Port of Greater Cincinnati Development Authority, this statewide program offers grants of 3%, 4%, or 5% of the purchase price for down payment or closing costs, non-repayable. It requires a 620 credit score, income limits based on the borrower (not household), and a 60-day primary residence occupancy. Details at Communities First Ohio.

2. Toledo Home at Last Down Payment Assistance

Toledo’s Home at Last program provides up to $9,500 as a non-repayable grant for first-time buyers with incomes at or below 80% AMI, purchasing within city limits. A $500 contribution, homebuyer education, and a lead paint inspection are required. Details at Toledo Home at Last.

3. Cuyahoga County Down Payment Assistance

Administered by CHN Housing Capital, this program offers up to $16,000 in DPA for first-time buyers in Cuyahoga County, with income limits (80% AMI) and a homebuyer education requirement. Contact Cuyahoga County DPA.

4. Dayton Down Payment Assistance

The City of Dayton and HomeOwnership Center provide up to 10% of the purchase price (max $15,000) as a forgivable second mortgage for Ohio first-time buyers with incomes at or below 80% AMI. Details at Dayton DPA.

5. Lakewood HOME Program

Lakewood offers up to $15,000 as a 0% interest, no-monthly-payment second mortgage for first-time buyers, repayable upon sale or refinance. A HUD-approved education course and program orientation are required. Details at Lakewood HOME.

6. Cincinnati American Dream Downpayment Initiative

Cincinnati provides up to $7,500 in DPA as a forgivable second mortgage for first-time buyers with incomes at or below 80% AMI. An OH homebuyer education course is required. Contact Cincinnati ADDI.

7. Public Servant Next Door Program

This program offers up to $8,000 in non-repayable grants and $15,000 in DPA for Ohio government employees (e.g., local, city, county workers). It requires a 620 credit score and homebuyer education. Details at Public Servant Next Door. (Read more first-time home buyer programs online.)

Top 10 Ohio Lenders for Home Buyer Grants

Ranked based on participation in OHFA programs, Communities First, FHLBI’s HomeOwnership Program, and market presence (verified via OHFA’s lender list and industry reports):

1. New American Funding: Offers Pathway ($6,000), OHFA YourChoice! (5%), and Communities First (5%) grants. New American Funding.

2. Huntington National Bank: Provides OHFA Grants for Grads (5%), Ohio Heroes (5%), and HomeReady loans. Huntington.

3. Fifth Third Bank: Supports OHFA YourChoice! (5%), FHLBI HomeOwnership ($20,000), and Chenoa Fund (3.5%). Fifth Third.

4. First Ohio Home Finance: Specializes in OHFA YourChoice! (5%), Grants for Grads, and Communities First (5%). First Ohio.

5. Union Home Mortgage: Offers OHFA Ohio Heroes (5%), MTC, and HomeReady/Home Possible. Union Home.

6. Ruoff Mortgage: Supports OHFA YourChoice! (5%), Grants for Grads, and Chenoa Fund (3.5%). Ruoff Mortgage.

7. KeyBank: Provides OHFA MTC, YourChoice! (5%), and FHLBI HomeOwnership ($20,000). KeyBank.

8. PNC Bank: Offers OHFA Ohio Heroes (5%), HomeReady, and Communities First (5%). PNC.

9. Caliber Home Loans: Supports OHFA YourChoice! (5%), Chenoa Fund (3.5%), and Home Possible. Caliber.

10. Fairway Independent Mortgage: Provides OHFA Grants for Grads (5%), YourChoice!, and Pathway ($6,000). Fairway.

Find additional OHFA-approved lenders at OHFA Lenders.

Case Study 1: The Lopez Family in Toledo

The Lopez family, earning $65,000 annually, aimed to buy a $200,000 home in Toledo’s 43609 zip code. As first-time buyers, they qualified for the OHFA YourChoice! DPA, receiving a $10,000 forgivable second mortgage (5% of the purchase price) for their FHA loan’s 3.5% down payment ($7,000) and $3,000 in closing costs. They also secured a $9,500 Toledo Home at Last grant, covering additional closing costs and fees. After contributing $2,000 (1%) and completing a HUD-approved course via NeighborWorks Toledo, they closed in March 2025. The $19,500 in assistance, with the YourChoice! loan forgivable after seven years and the Toledo grant non-repayable, enabled them to afford a home in a competitive urban area.

Case Study 2: Sarah Kim in Cincinnati

Sarah, a recent nursing graduate earning $50,000, wanted a $180,000 condo in Cincinnati.

Through the OHFA Grants for Grads, she secured a 0.25% discounted FHA loan and a $9,000 DPA (5%), forgivable after five years.

The Cincinnati American Dream Downpayment Initiative added a $7,500 forgivable second mortgage.

New American Funding’s Pathway provided $6,000 for closing costs with a Ohio home loan. After contributing $1,800 (1%) and completing a HUD-certified course via HomeOwnership Center, Sarah closed in April 2025. The $22,500 in assistance covered all upfront costs, leveraging her graduate status and minimizing financial strain.

Tips for Ohio First-Time Home Buyer Loans

1. Get Pre-Approved: Obtain a pre-approval letter from an OHFA-approved lender to clarify your budget and strengthen offers. See OHFA Lenders.

2. Combine Programs: Pair OHFA’s YourChoice! or Grants for Grads with local grants (e.g., Toledo, Cincinnati) or Chenoa Fund, ensuring compatibility via your lender.

3. Complete Education Courses: HUD-approved courses like eHome America ($75) or NeighborWorks (free) are required. See eHome America.

4. Check Targeted Areas: First-time buyer requirements may be waived in zip codes like 43609 or 45202. Check OHFA Targeted Areas.

5. Monitor Credit and DTI: Aim for a 640+ credit score and DTI below 45–50%. Use LendingTree Spring for credit monitoring.

Ohio’s home prices rose 5.2% in 2024, with urban areas like Columbus and Cleveland facing increased competition.

Local DPA programs like Toledo’s and Dayton’s are limited and first-come, first-served, with funds potentially depleting by mid-2025. OHFA’s YourChoice! and Grants for Grads require repayment if sold or refinanced early, and MTC benefits depend on tax liability.

USDA home financing are restricted to rural counties (e.g., Adams, Vinton), and VA home loans require military eligibility. Buyers should verify funding availability and review repayment terms with lenders.

Ohio’s 2025 first-time home buyer programs, led by OHFA’s YourChoice!, Grants for Grads, Ohio Heroes, and MTC, alongside local initiatives in Toledo, Cuyahoga, and Cincinnati, provide robust support for overcoming upfront costs.

Combining these with federal options like FHA, VA, or HomeReady loans maximizes affordability. The top 10 lenders, including New American Funding and Huntington, enhance access to these programs. Work with approved lenders, complete required education, and act promptly to secure limited funds, making homeownership achievable in Ohio’s affordable yet competitive market.

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