Are you a first time home buyer? Do you think you have missed the incentives for first time home buyers now that the tax credit is over?
Here is some good news for you. Ohio Housing Finance Agency, (OHFA) still has some great programs available for first time home buyers with down payment assistance. The program offers competitive interest rates and a great way to help you buy your dream home.
If you qualify for the program, OHFA will give you a grant for 2.5% of the purchase price to help with the down payment or closing costs.
There are credit and income requirements to qualify. If you haven't owned a home for 3 years, you may be eligable for the program.
The income limits to qualify vary from county to county along with the purchase price limits. Here is an example take from their website as of July 18th 2010.
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| NONTARGET AREAS |
TARGET AREAS |
GRANTS FOR GRADS |
| Income Limits |
Income Limits |
Income Limits |
| 1 or 2 person family: $69,200 |
1 or 2 person family: $83,040 |
1 or 2 person family: $83,040 |
| 3 or more person family: $79,580 |
3 or more person family: $96,880 |
3 or more person family: $96,880 |
| |
|
|
| Purchase Price Limits |
Purchase Price Limits |
Purchase Price Limits |
| New and existing homes: $294,903 |
New and existing homes: $360,437 |
New and existing homes: $294,903
|
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Here is some more information about qualifying properties:
To qualify for an OHFA loan, you must also:
- Be a first-time homebuyer—someone who has not owned or had an ownership interest in his/her principal residence in the last three years—or be a qualified military veteran. Not a first-time homebuyer or a military veteran?
- Be creditworthy. Minimum credit scores may apply.
- Have a signed Purchase and Sales Agreement for a qualifying property.
- Qualify for the loan being requested. Lenders will assess your ability to afford a home by considering income, assets, job stability, liabilities, and other criteria.
Additional property requirements:
- Properties are limited to two acres unless additional acreage is required by local health or safety code.
- Qualifying properties include:
- Existing homes: single-family dwellings, duplexes, and up to four-unit properties
- Spec/Nearly completed homes: one-unit single-family dwellings
- Modular/Manufactured homes: one-unit single-family dwellings, permanently affixed to a foundation
I recently assisted a client who utilized this program. We asked the seller of the home to pay closing costs, which they did. They used the OHFA program's down payment assistance to cover almost all of the down payment. With the tax credits received at closing and the credit for the earnest money they put down with the offer, this buyer received money back at the closing table.
This can be a great opportunity for the right buyers. If you are wanting to purchase a home and want to put as little down as possible. This may be a good program for you. Call us and we can put you in touch with some great loan officers familiar with the OHFA programs.
For more information visit the OHFA website: http://www.ohiohome.org/homebuyer/first_time.aspx
or visit our website www.jeffsmithteam.com