Down Payment Assistance in Ohio, Explained Properly
Program and regulatory figures verified September 25, 2026. Details change; confirm your scenario with us.
Most Ohio assistance pages list the programs and the income limits. The thing worth knowing is what happens to the money later, and the two programs answer that differently.
Same money, different collateral
Terms below come from the OHFA Conventional Program Guidelines and OHFA Government Program Guidelines, July 2026. OHFA runs two assistance programs that pay an identical amount. Read what each one attaches to and they stop looking alike.
OHFA Down Payment Assistance is a second mortgage with a seven-year term and no accrued interest. The guidelines are blunt about the trigger: the second loan is subject to repayment in its entirety if the property is sold or refinanced within the first seven years from when the mortgage loan closed. Reach the seventh anniversary and the obligation is forgiven and the lien released.
There is no partial forgiveness along the way. Six years and eleven months in, the full balance is still due if you sell. It is a cliff.
Grants for Grads is a five-year second forgiven at 20% per year. That alone makes it a ladder rather than a cliff. But the trigger is the part that surprises people: if the borrower sells the home before year five and provides documentation that they will continue to reside in Ohio after the sale, the remaining balance is forgiven anyway.
Read that again. You can sell the house and keep the forgiveness. What you cannot do is leave the state. The full explanation.
The co-signer Ohio allows and Illinois forbids
Both states count income the same way, restricting it to people who will both live in the property and be obligated on the note. Then they part company.
OHFA permits non-occupant co-signers, on one-unit properties and not on manufactured homes. IHDA in Illinois states it does not permit non-occupant co-borrowers, regardless of loan type or program.
The consequence is large. In Ohio a co-signer is on the note but does not live in the home, so their income helps the first mortgage qualify while staying outside the OHFA income limit. In Illinois that structure does not exist. Why the same sentence produces opposite answers.
The programs at a glance
| Program | Who it is for | Assistance |
|---|---|---|
| First-Time Homebuyer | No ownership interest in three years, or a veteran, or buying in a target area | 3% / 3.5% |
| Ohio Heroes | Military, police, fire, health care, teachers | 3% / 3.5% |
| Grants for Grads | A degree within 18 months of reservation | 3% / 3.5%, forgiven 20% a year |
| Next Home | Buyers who are not first-time | 3% / 3.5%, assistance optional |
| FTHB Edge | First-time buyers in the income band between the two limits | 3% / 3.5% |
The income limits move in a straight line
Ohio publishes two limits per county and the relationships between them are exact rather than approximate, though they are not all the same number. For a one-to-two-person household the target limit is 1.20 times the non-target limit in every county. The non-target three-or-more figure is 1.15 times the non-target one-to-two figure, and the target three-or-more figure is 7/6 of the target one-to-two figure, so a larger household gains about 21.7 percent from a target address rather than 20.
That regularity is why FTHB Edge exists: it covers exactly the band between the two, 20% wide for a smaller household and about 21.7% for a larger one. All the limits and how the Edge band works.
Where to start
- Eligibility, the whole test in order.
- Ohio Heroes, including the volunteer firefighter and deputy sheriff rules most summaries miss.
- Credit and DTI, where FHA asks more than VA or conventional.
- Calculators, to size the assistance and check your income band.
Frequently asked questions
How much down payment assistance can I get in Ohio?
OHFA Down Payment Assistance pays 3% of the purchase price on a conventional loan or 3.5% on an FHA, VA or USDA-RD loan. Grants for Grads pays the same 3% or 3.5%. The assistance comes as a second mortgage with no accrued interest, rather than as cash, and it is used alongside an OHFA first mortgage through the First-Time Homebuyer, Ohio Heroes, FTHB Edge or Next Home programs.
What happens to OHFA down payment assistance if I sell my house?
It depends which program. OHFA Down Payment Assistance is a seven-year second that is subject to repayment in its entirety if the property is sold or refinanced within the first seven years, with the obligation forgiven on the seventh anniversary of the note date. There is no partial forgiveness before then. Grants for Grads is forgiven at 20% per year over five years, and if you sell before year five and document that you will continue to reside in Ohio after the sale, the remaining balance is forgiven.
Can someone co-sign an OHFA loan in Ohio?
Yes. OHFA's Government guidelines permit non-occupant co-signers and co-mortgagors as permitted by first mortgage guidelines, and the Conventional guidelines permit them for both Fannie Mae and Freddie Mac on one-unit properties, though not on manufactured homes, at a maximum 95% loan-to-value and 105% combined loan-to-value. This differs from Illinois, where IHDA does not permit non-occupant co-borrowers at all.
Do I need money of my own to use Ohio down payment assistance?
OHFA itself sets no minimum. The guidelines state that no minimum borrower investment is required by OHFA unless required by Fannie Mae or Freddie Mac on a conventional loan, or by FHA, VA or USDA-RD on a government loan. So whatever your loan type requires is what governs. This differs from Illinois, where IHDA requires the greater of 1% of the purchase price or $1,000 from the borrower's own funds.
Do I have to be a first-time buyer for Ohio down payment assistance?
No. OHFA's Next Home program is for borrowers who do not meet the first-time homebuyer definition, and it can use the same down payment assistance. Even within the first-time programs, the definition is generous: no ownership interest in a principal residence in the last three years, or an honorably discharged veteran even if they have owned before, or any buyer purchasing in a designated target area census tract.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Cornerstone First Mortgage is a participating lender in the Ohio Housing Finance Agency's programs. The Ohio Housing Finance Agency is an Equal Opportunity Housing entity. Loans are available on a fair and equal basis regardless of race, color, religion, sex, familial status, national origin, military status, disability or ancestry. Please visit www.ohiohome.org for more information. Educational content about financing, not a loan commitment and not legal or tax advice. OHFA program terms and limits are set by the Ohio Housing Finance Agency and change; figures here carry the date we verified them. Loans are subject to borrower and property qualification.