Financing Help for Low-Moderate Income Buyers, Distressed Borrowers and First Time Buyers
The State of Ohio has many options for first-time home buyers, distressed borrowers and those with low to moderate income. Whether you're looking for down payment or closing cost assistance or would like a mortgage credit certificate for brakes on your taxes, Ohio has many options for a variety of different programs and applicants.
First Time Home Buyers
Ohio has a first-time homebuyer program that offers those that qualify flexible terms and a variety of loans including FHA, VA, and USDA loans. They work for new or existing homes and help folks in a competitive market with 30 year fixed interest rate options, flexible rates, and generous purchase prices. To qualify, applicants must never have owned real estate or have not owned any interest in real estate over the last three years. Another option is to be active military or a veteran or have purchased a home in a target area. Each area of Columbus has its own loan products and options for different counties and cities. You must meet credit score requirements of 640 or higher and have already signed a purchase and sale agreement for qualifying property. The lender will assess your ability to afford a home by considering your income, credit score, job stability, debts, and assets.
Down payment assistance
The down payment assistance program offers an additional loan in the amount of 2.5% of the home's purchase price to be used for down payments or closing costs. You may also use these funds for prepaid expenses incurred prior to closing. If you do take advantage of this assistance, your mortgage interest rate will be up to .5% higher than the current mortgage rates. This down payment will be issued as a second mortgage with a 0% interest rate and no payment due until the home has been refinanced or sold. However, if you sell or refinance prior to the five-year mark, you are responsible for paying the assistance back to 0HFA. after five years the loan is completely forgivable. To qualify, you must complete an education course offered by a local housing agency as well as several other easy eligibility requirements. (Call for more information)
Mortgage Credit Certificate
The mortgage credit certificate is another type of program that can be used to reduce the household's tax burden each year for the life of their loan. With the certificate, a percentage of what you pay in mortgage interest becomes a tax credit that you can deduct dollar for dollar from your income tax liability. This can be up between 20% and 40% and the remaining of your mortgage interest will continue to qualify as an itemized tax deduction. If you qualify you must meet one of the following: be a first-time homebuyer, purchase a home in a target area or be active military or a veteran. You must also occupy the property as your primary residence and have a decent credit score.
For distressed borrowers, those that have dealt with a foreclosure or short sale in the past, there are many options within 12 to 24 months of good credit that allows you to buy and own a home again. Each product is dealt with on a case-by-case basis.
For more information on which program an option works best for your situation please give us a call. We can help at you in touch with the local lender that work specifically with all of these types of programs. We look forward to helping you find the perfect home and the perfect loan in Columbus Ohio.
Don Payne Group