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Grants for Grads

Recent college graduates, including those earning postgraduate degrees, can now receive down payment and closing cost assistance and a favorable mortgage interest rate from an OHFA participating lender through the Grants for Grads Program. Eligible borrowers can use the grant to reduce the out-of-pocket expenses associated with buying a home.

This program offers a financial incentive to recent college graduates toward the purchase of a home in Ohio. This program provides down payment assistance equal to 2.5% of the purchase price of the home in the form of a forgivable second mortgage.

This grant is a 0% interest loan with deferred payment. If the grad lives in the property for five years, the loan is forgiven. If the graduate moves out of Ohio within the first five years, repayment is required. Repayment is NOT required if the grad moves out of or sells the house but stays in Ohio.

If you are an income-eligible first-time homebuyer, graduated from an Ohio high school and have earned an associate, bachelor's, master's, doctorate or other postgraduate degree within the last 18 months, you can take advantage of the Grants for Grads Program.
  • OHFA will issue a grant in an amount for 2.5% of your home's purchase price.
  • You can use the grant to pay for the down payment, closing costs, or other prepaid expenses incurred prior to closing. Keep in mind that while the grant will help cover some of your up-front costs, you may still be required to contribute some money as well.
  • The grant will be issued as a second mortgage with a 0% interest rate with no payment due. The loan is forgivable after five years. However, if you move out of Ohio prior to the five-year mark, you are responsible for paying a portion of the grant back to OHFA as indicated below:

 

Months resided in home		 Amount of grant owed to OHFA if you move out of state
Less than 12 months 100%
12 months to 24 months 80%
24 months to 36 months 60%
36 months to 48 months 40%
48 months to 60 months 20%
Do I Qualify?

To qualify for the Grants for Grads Program, you must:

  • Be a first-time homebuyer
  • Meet specific income guidelines
  • Have graduated from an Ohio high school
  • Apply for the grant within 18 months of graduating from an educational institute recognized by the Ohio Board of Regents
  • Obtain a mortgage through an OHFA participating lender

In addition, you must either:

  • Complete a free homebuyer education course offered by any housing counseling agency approved by the U.S. Department of Housing and Urban Development, or
  • Use the streamlined OHFA homebuyer education program.

Learn more about your homebuyer education options.

Downloadable Information

You can download a Grants for Grads Fact Sheet (1.33 MB Adobe PDF File) now or visit our download center for information about any of our loan programs.

Questions?

Your lender can help you choose the OHFA program that is right for you. You can also check out our Grants for Grads FAQs and homeownership FAQs for more information.

If you need additional assistance, please contact:

Office of Homeownership
Ohio Housing Finance Agency
57 East Main Street
Columbus, Ohio 43215
888.362.6432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Send mail to Teresa@TeresaButler.com with questions or comments about this web site. Copyright © 2012 Teresa Butler, Realtor©   All photos on this site Copyright ©Teresa Butler 2012. All rights reserved.
Last modified: 05/15/12 09:52 PM

The information provided herein is supplied by several sources and is subject to change without notice. Signature Real Estate or Teresa Butler, Agent, does not guarantee or is any way responsible for its accuracy, and provides said information without warranties of any kind, either express or implied. Teresa Butler, Signature Real Estate, 1385 Dublin Road, Columbus, Ohio 43215