Key takeaways
- The Ohio Housing Finance Agency (OHFA) pairs a 30-year fixed first mortgage with down payment assistance of 3% (conventional) or 3.5% (FHA, VA, USDA) of the purchase price.
- The standard assistance is a 7-year forgivable second mortgage; Grants for Grads is forgiven 20% a year over 5 years and adds a lower rate for recent college graduates.
- Ohio Heroes (teachers, nurses, first responders, veterans and more) get a 0.25% interest rate discount.
- Minimum credit score is 640 (conventional, VA, USDA) or 650 (FHA), with county income and purchase price limits and required homebuyer education.
Ohio’s statewide help for buyers comes from the Ohio Housing Finance Agency, which works through approved lenders across all 88 counties. OHFA’s loans come with optional down payment and closing cost assistance worth 3% or 3.5% of the purchase price, a rate discount for public-service workers, a forgivable grant for recent graduates and a federal Mortgage Tax Credit that can cut your income tax every year.
On a $250,000 home with an FHA loan, 3.5% assistance is $8,750, which covers the entire 3.5% FHA minimum down payment. Here’s how each OHFA program works, who qualifies and how to apply.
Ohio homebuyer programs at a glance
Rates and terms checked: Nov. 11, 2026. They change often, so confirm with the provider before you apply. How we review lenders
| Program | Help | Terms | Who it’s for |
|---|---|---|---|
| First-Time Homebuyer + Down Payment Assistance | 3% (conventional) or 3.5% (government) of the purchase price | Second mortgage forgiven after 7 years; repay in full if you sell within 7 years | First-time buyers, veterans and buyers in target areas |
| Grants for Grads | 3% or 3.5% of the price plus a lower interest rate | Forgiven 20% a year over 5 years; may be repayable if you move out of Ohio | Buyers who earned an associate degree or higher in the past 18 months |
| Ohio Heroes | 0.25% interest rate discount (can add down payment assistance) | Same loan rules as the first-time program | Veterans and service members, police, firefighters, EMTs, healthcare workers, pre-K–12 educators |
| Next Home | OHFA loan with optional down payment assistance | Same credit and DTI rules as the first-time program | Repeat buyers |
| FTHB Edge | OHFA first-time loan for higher earners | Rates may be higher | First-time buyers in non-target areas earning above non-target limits but within target-area limits |
| Mortgage Tax Credit (MTC) | Yearly federal tax credit on part of your mortgage interest | 40% (up to $2,000 a year) with an OHFA loan; 15% or 20% with another lender’s loan | First-time buyers or buyers in target areas |
OHFA down payment assistance
OHFA’s assistance is a second mortgage worth 3% of the purchase price with a conventional loan or 3.5% with an FHA, VA or USDA loan. You can use it for the down payment and closing costs (but not the earnest money deposit). It comes with an OHFA First-Time Homebuyer, Ohio Heroes or Next Home first mortgage.
The assistance is forgivable after seven years. If you sell the home within those seven years, the full amount must be repaid, so it fits buyers who plan to stay put. OHFA’s eligible loan types are FHA, VA, USDA Rural Development, Fannie Mae HFA Preferred and Freddie Mac HFA Advantage.
Worked example: A first-time buyer purchases a $250,000 home with an FHA loan. OHFA’s 3.5% assistance is $8,750, equal to the FHA minimum down payment, so the buyer’s own cash can go toward closing costs and reserves. With a conventional loan, 3% of the same price is $7,500. Stay seven years and none of it has to be paid back.
Grants for Grads
Grants for Grads is aimed at keeping recent graduates in Ohio. If you earned an associate, bachelor’s, master’s or doctorate degree within 18 months before your loan reservation date, you can get assistance of 3% (conventional) or 3.5% (government loans) of the purchase price plus a lower mortgage interest rate. It’s limited to single-unit homes, and you can’t have owned your primary residence in the past three years.
The assistance is forgiven at 20% a year over five years. On a $250,000 home with an FHA loan, the $8,750 grant shrinks by $1,750 each year until it’s gone. Some or all of it may have to be repaid if you move out of Ohio during that time.
Ohio Heroes
Ohio Heroes uses the same loans, credit scores and debt-to-income limits as the First-Time Homebuyer program but takes 0.25% off the interest rate. It’s open to full-time workers in these groups: veterans, active-duty and reserve service members (and surviving spouses); police officers, firefighters, EMTs and paramedics; physicians, nurse practitioners and nurses (RN, LPN and STNA/PCA); and pre-K–12 teachers, administrators and counselors. You can combine it with down payment assistance, and repeat buyers can use it with Next Home.
The Ohio Mortgage Tax Credit
A Mortgage Tax Credit (Ohio’s name for a Mortgage Credit Certificate) turns part of the mortgage interest you pay each year into a dollar-for-dollar federal tax credit, on top of the regular mortgage interest deduction. With an OHFA first-time homebuyer loan (MTC Plus), the credit is 40% of your yearly interest, up to $2,000 a year. With a fixed-rate loan from a lender outside OHFA’s loan programs (MTC Basic), it’s 15% in non-target areas or 20% in target areas.
In our $250,000 example, an FHA loan of $241,250 at an example rate of 6.5% generates about $15,600 of interest in the first year. Forty percent of that is about $6,240, so the credit would hit the $2,000 cap. The credit is nonrefundable, so you need enough federal income tax to use it, and OHFA notes that pairing it with an OHFA loan may mean a slightly higher interest rate. OHFA charges a $250 fee for MTC Plus and $500 for MTC Basic.
Who qualifies
- First-time buyer: you haven’t owned or had an ownership interest in your primary residence in the past three years. Honorably discharged veterans and buyers in target areas are exempt; repeat buyers can use Next Home.
- Credit score: 640 for conventional, VA and USDA loans; 650 for FHA. Maximum debt-to-income ratio runs 45% to 50% depending on loan type and score.
- Income and price limits: set by county and household size, with higher limits in target areas. For example, from July 1, 2026, the non-target income limit in Franklin County (Columbus) is $111,500 for a household of one or two and $128,225 for three or more, and the one-family purchase price limit in most of the state is $566,355. Check OHFA’s limits for your county.
- Homebuyer education: required for OHFA borrowers, including anyone using down payment assistance.
- Owner-occupied: the home must be your primary residence. Eligible homes include single-family homes, condos, two- to four-unit properties and manufactured homes.
How to apply
- Check your budget with the home affordability calculator and your debt-to-income ratio.
- Use OHFA’s eligibility questionnaire and find an OHFA-participating lender at MyOhioHome.org.
- Complete OHFA’s homebuyer education.
- Get preapproved, then shop for a home under your county’s purchase price limit.
- Compare Loan Estimates and closing costs; estimate yours with the closing cost calculator.
Budget note: OHFA fees and what to plan for
OHFA loans carry set fees you should expect on your Loan Estimate: a 1% origination fee, a $100 OHFA administrative fee, an $84 tax service fee and a $475 funding fee. On a $241,250 loan, the origination fee alone is about $2,413. The down payment assistance can help with these closing costs, but it can’t cover your earnest money deposit, so keep that cash ready when you make an offer.
Federal loan options that work with Ohio programs
OHFA’s programs sit on top of standard loans: FHA (3.5% down), VA and USDA (0% down for eligible buyers) and conventional loans with as little as 3% down. Compare them in our first-time homebuyer programs guide and our FHA vs. conventional comparison, and run payments in the mortgage calculator.
First-time home buyer programs in other states
California Florida Georgia Illinois Michigan New York North Carolina Pennsylvania Texas
Compare FHA, VA, USDA and 3%-down loans nationwide →
Down Payment Assistance Finder: see which programs fit you and about how much →
Frequently asked questions
How much down payment assistance can I get in Ohio?
OHFA gives 3% of the purchase price with a conventional loan or 3.5% with an FHA, VA or USDA loan. On a $250,000 home, that’s $7,500 or $8,750.
Do I have to repay OHFA down payment assistance?
Not if you keep the home long enough. The standard assistance is forgiven after seven years but must be repaid in full if you sell sooner. Grants for Grads is forgiven 20% a year over five years.
What credit score do I need for OHFA programs?
At least 640 for conventional, VA and USDA loans and 650 for FHA loans. Your debt-to-income ratio also has to meet OHFA’s limit for your loan type.
Can repeat buyers get OHFA help?
Yes. Next Home is for buyers who have owned a home in the past three years, with optional down payment assistance. Buyers in target areas and veterans can also use the first-time program.
Sources: Ohio Housing Finance Agency (Programs at a Glance, July 2025 program update release, Mortgage Tax Credit flyer, Income and Purchase Price Limits effective July 1, 2026, and MyOhioHome.org eligibility page). Program terms checked Nov. 11, 2026; terms, limits and availability change, so confirm with an OHFA-participating lender. This article is for educational purposes and isn’t financial advice.
Written by Chanchala
Founder & Lead Writer · B.Sc. Mathematics (Honors) · 9 years in banking & lending
Chanchala is the founder and lead writer of FinInfoBlog. She holds a B.Sc. in Mathematics (Honors) and has 9 years of experience in banking and lending. She writes plain-English guides on savings, CDs, loans, credit and personal finance for U.S. readers, and makes sure every example shows the math behind the money decision. How we research and fact-check.