Ohio First-Time Home Buyer Guide 2026
This guide for Ohio first-time home buyers covers OHFA’s Down Payment Assistance program, Grants for Grads, Ohio Heroes, the Mortgage Tax Credit, income and purchase price limits, and the eligibility requirements you’ll need to meet before closing.
OHFA Down Payment Assistance
The Ohio Housing Finance Agency (OHFA) is the state’s primary resource for buyers who need help covering a down payment and closing costs. OHFA down payment assistance pairs with a 30-year fixed-rate conventional, FHA, VA, or USDA-RD loan and doesn’t have to be repaid if you stay in your home long enough.
| Feature | Detail |
|---|---|
| Assistance amount | 3% of the purchase price (conventional loans) or 3.5% (FHA, VA, USDA-RD) |
| Structure | Forgivable assistance applied to down payment, closing costs, or other pre-closing expenses |
| Repayment | Forgiven after 7 years; full repayment required if you sell or refinance sooner |
| Min. credit score | 640 (conventional, USDA, VA) or 650 (FHA) |
| Income & purchase price limits | Vary by county, household size, and target vs. non-target area |
| Homebuyer education | Required — completed after your loan application is submitted |
| First-time buyer required? | No — open to repeat buyers |
OHFA down payment assistance is available statewide — not every Ohio lender offers it, so ask specifically about OHFA programs when shopping for a mortgage. Confirm current terms at myohiohome.org.
Grants for Grads
Grants for Grads layers a discounted OHFA down payment assistance option on top of the standard program for buyers who recently finished a degree.
| Feature | Detail |
|---|---|
| DPA amount | 3% (conventional) or 3.5% (government loans) |
| Forgiveness | Forgiven after 5 years, as long as you remain in Ohio |
| Repayment trigger | Selling or moving out of Ohio within 5 years requires repaying some or all assistance |
| Graduation requirement | Associate’s, bachelor’s, master’s, doctorate, or other post-graduate degree earned within the last 18 months |
| Other eligibility | Must not have owned or had an ownership interest in a primary residence in the last 3 years |
Grants for Grads uses the same income and purchase price limits and credit score minimums as OHFA’s standard Down Payment Assistance program.
Ohio Heroes
Ohio Heroes rewards Ohioans who serve the public with a discounted mortgage interest rate. It can be paired with OHFA down payment assistance on the same loan.
You may qualify for Ohio Heroes if you work in one of these fields:
- Veterans, active-duty military members, or reserve component members (including surviving spouses)
- Police officers, firefighters, volunteer firefighters, EMTs, and paramedics
- Physicians, nurse practitioners, nurses (RN and LPN), and STNAs
- Teachers (pre-K through grade 12), administrators, and counselors
Ohio Heroes uses the same credit score minimums (640 for conventional/USDA/VA, 650 for FHA) and income/purchase price limits as OHFA’s other homebuyer programs.
Mortgage Tax Credit (MTC)
OHFA’s Mortgage Tax Credit gives eligible homeowners a direct federal tax credit on a portion of the mortgage interest they pay each year, in addition to the standard IRS mortgage interest deduction. Because it’s a non-refundable credit, you need a tax liability to use it.
| Program | Credit Amount | Notes |
|---|---|---|
| MTC Plus | 40% of annual mortgage interest, capped at $2,000/year | Used with an OHFA first mortgage; can combine with down payment assistance; may carry a slightly higher rate |
| MTC Basic | 15% of annual mortgage interest (20% in a target area) | Used with any lender’s loan; no OHFA-set minimum credit score; cannot combine with OHFA down payment assistance |
Confirm your target-area status and current MTC terms at myohiohome.org before assuming which rate applies to your property. See current terms at myohiohome.org.
Income & Purchase Price Limits
OHFA’s income and purchase price limits vary by county, household size, and whether the property sits in a designated target area. The examples below show how much these figures can differ across the state — always confirm your own county’s limits before assuming you qualify.
| County | Household Size | Non-Target Income Limit | Target Income Limit | Purchase Price Limit (Non-Target / Target) |
|---|---|---|---|---|
| Franklin | 1–2 people | $111,500 | $133,800 | $618,475 / $755,913 |
| Franklin | 3+ people | $128,225 | $156,100 | $618,475 / $755,913 |
| Cuyahoga | 1–2 people | $105,000 | $126,000 | $566,355 / $692,211 |
| Cuyahoga | 3+ people | $120,750 | $147,000 | $566,355 / $692,211 |
Look up your own county. Use OHFA’s purchase price and income limit tool to confirm current figures before you start shopping — limits are set per county and updated periodically.
Eligibility Requirements
Requirements vary slightly by program, but most OHFA homebuyer programs share the same core criteria:
- Credit score: Minimum 640 for conventional, USDA, and VA loans; 650 for FHA loans (MTC Basic sets no OHFA credit score minimum)
- Income & purchase price limits: Vary by your county, household size, and program
- Debt-to-income ratio: Must meet the ratio required for your loan type
- Homebuyer education: Free HUD-approved course required before closing (not required for MTC Basic-only borrowers)
- Participating lender: Must use an OHFA-approved participating lender
Combining OHFA programs. You generally cannot combine more than one OHFA down payment assistance program on the same loan, since they’re structured as competing second mortgages. The Mortgage Tax Credit, however, can be combined with down payment assistance (MTC Plus) or used on its own with any lender’s loan (MTC Basic). Ask your participating lender which combination fits your situation.
Step-by-Step Buying Process for Ohio First-Time Home Buyers
| Step | What to Do | Notes |
|---|---|---|
| 1 | Check your credit score | You’ll need at least 640 for OHFA’s conventional, USDA, and VA options, or 650 for FHA loans under the Mortgage Tax Credit Basic program. |
| 2 | Find an OHFA-participating lender | Not all Ohio lenders participate in OHFA programs. Confirm your lender offers the specific down payment assistance or MTC program you want. |
| 3 | Complete homebuyer education | Required for OHFA down payment assistance programs (not required for MTC Basic-only borrowers). Complete a free HUD-approved course before closing. |
| 4 | Get pre-approved | Your lender calculates your maximum loan amount and confirms which OHFA program(s) you qualify for. |
| 5 | Make an offer | Your real estate agent will guide you through Ohio’s standard purchase contract and disclosure requirements. |
| 6 | Complete the inspection period | Ohio’s standard inspection period is commonly 10 days, though it’s negotiable in the purchase contract. |
| 7 | Close with a title company | Most Ohio closings are handled by a title company rather than an attorney. Review your Closing Disclosure and sign at closing, typically 30–45 days after your offer is accepted. |
