Colin McHale & Robert Hennessy

The REALTORs to help your dreams Happen

tax credits & government programs

Grants for grads: Down payment grants for Ohio graduates

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

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 - 24 months

    80%

    24 - 36 months

    60%

    36 - 48 months

    40%

    48 - 60 months

    20%

    Do i qualify?

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


  • Be a first time home buyer

  • Meet Specific Income Guidelines

  • 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



    • 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



    • Information Obtained from: Ohio Housing Finance Agency

    For More Information, Contact me or visit: http://www.ohiohome.org/homebuyer/grantsforgrads.aspx

    free information for you

    Contact me for a no obligation, no cost, look at what you could potentially buy in the Cleveland area. Please send me an email. I would be more than happy to send you information on what is currently available in the market, as well as set you up with a finance manager for a no obligation, no cost, prequalification (typically takes only 15 minutes).

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