Ohio Down Payment Assistance Programs - Ohio Down Payment Assistance
Ashtabula County Community Housing Improvement First Time Homebuyers Assistance Program (FTHB)
6,000. (440) 576-3853
Athens Home Ownership Made Easier Program (HOME)
$10,000 (740) 592-3342
Cincinnati Metropolitan Housing Authority Hope VI Subsidy
$112,275 (513) 977-5729
Cincinnati The Home Ownership Center of Greater Cincinnati Inc Empowerment Zone Downpayment Assistance Program (DAP)
$2,500 (513) 961-2800
Cleveland Neighborhood Housing Services of Cleveland Inc Downpayment Closing Cost Assistance Loan (DPCCAL)
$25,000 (216) 361-0516
Cleveland, Action to Support Housing Second Mortgage Assistance Program (SMAP)
$20,000 (216) 621-7350
Columbus School District Columbus Neighborhood Housing Servies Inc. Downpayment Assistance Program (DAP)
$2,000 (614) 224-3603
Dayton Citywide Building Finance Corporation Neighborhood Lending Down Payment Assistance Program (NLDPAP)
$3,000 (937) 226-0457
East Cleveland Home Ownership Program (HOP)
$3,700 (216) 681-2404
Franklin County Columbus Housing Partnership Down Payment Assistance Program
$3,000 (614) 221-8889
Franklin County Down Payment Assistance Program (DPAP)
$5,000 (614) 221-8889
Hamilton County Greater Cincinnati Mortgage Counseling Service American Dream Accounts Programs (ADAP)
$2,500 (513) 948-8820
Hamilton County HOME Program (HCHP)
$25,000 (513) 946-4481
Hancock County First Time Home Buyer Grants Program
$6,000 (419) 424-7094
Kettering First Time Homebuyers Program (FTHP)
$2,500 (937) 296-2401
Lancaster Homebuyer Acquisition Assistance Program (HAAP)
$5,000 (740) 687-6663
Madison County Community Housing Improvement Program (CHIP)
$33,000 (614) 445-8373
Mansfield Homebuyer Assistance Program (HAP)
$10,000 (419) 755-9793
Massillon Homebuyers Assistance Program (HAP)
$6,250 (330) 830-1717
Montgomery County - County Corp Lease Purchase Program (LPP)
$5,000 (937) 225-6328
Montgomery County - County Corp. Downpayment Plus Program (DPP)
$2,500 (937) 225-6328
Morgan / Washington Counties Community Housing Improvement Program (CHIP)
$4,000 (740) 373-6623
Multi Counties Better Housing League of Greater Cincinnati/Ohio Trust Fund Gift Program (GIFT)
$2,000 (513) 721-6855
Multi Counties Rural Opportunities Inc First Time Homebuyer Program (FTHP)
$2,500 (330) 821-4740
Multi County Greater Cincinnati Mortgage Counseling Service Downpayment Assistance Program (DAP)
$2,000 (513) 948-8820
Ohio North Fairmont Community Center Grant Program
$1,000 (513) 921-5842
Ohio Three Rivers Housing Corporation Downpayment Assistance Program (DAP)
$40,000 (740) 797-7139
Shaker Heights Neighborhood Revitalization Department Funds for the Future of Shaker Heights Program (FFF)
$12,000 (216) 491-1330
Sidney Community Housing and Improvement Program (CHIP)
$5,700 (419) 352-7537
Springfield Home Purchase & Rehabilitation Incentive Program
$25,000 (937) 324-7368
Springfield Redevelopment Corp. Downpayment Assistance Program
$3,000 (937) 322-4623
Van Wert County Homebuyer Assistance Program
$6,600 (419) 238-4544
Warren County First Time Homebuyers Assistance - Deferred Loan Program (DLP)
$55,000 (513) 695-1259
Youngstown Homebuyer Program (HP)
$3,000 (330) 744-0854Down payment assistance - There are down payment assistance programs available for those who want to own a home but cannot afford the down payment or closing costs. Most down payment assistance programs are used in conjunction with FHA loans.
How the down payment assistance programs generally work is that the program operators provide the down payment for the qualified home buyer and then the seller reimburses the program for the amount of the down payment that was provided. In essence, the seller gave a 3 per cent (in the case of an FHA loan) discount off the purchase price but the selling price was listed as the full price and the discount was used for down payment assistance.
A first time home buyer is defined as an individual, who has not had an ownership interest in a home within the last three years. If you fit this definition, you might be eligible for a home buyer grant, that can be used toward the partial or full down payment.
In some of the local or state government down payment assistance programs there involves what is known as an equity share or "silent second mortgage" on the title. In this arrangement the purchaser agrees to share the future equity from market appreciation with the government entity. Such "silent seconds" can often cause roadblocks when the property owners go to refinance their first mortgages.
Each State also has its own Government run programs available on the county and city level that can help home buyers get into a home with grants and down payment assistance.
earnest money - Earnest money is the amount of money you put down on the home you are purchasing when you initially sign the purchase contract.
This "deposit" shows good faith and that you intend to follow through with the contract. If you back out of the contract for anything other than a major reason, typically earnest money is kept by the seller.
Most contracts have a stipulation or clause that states that earnest money is to be refunded if buyers cannot qualify for a mortgage loan. Stipulations such as this make it very important to seek loan approval as quickly as possible. Some sellers will not except a contract from a buyer without an approval letter.
Earnest money is applied to your down payment and closing costs at settlement. The listing agent holds the earnest money in an Escrow account until closing, and brings a certified check for the amount to closing.
Most states now allow financing contingencies to be written into purchase contracts, such as, contingent upon buyer receiving financing at 6.5%. If the buyer can't qualify, the ernest money must be returned. This is another good reason to get your mortgage professional involved early.
Also, this is another good reason to use a real estate agent when making a purchase. I can refer you to a good real estate agent if you need one.
Earnest money shows interest and the seriousness of making a bid on a property. There is no set amount of earnest money that is required for every home purchase transaction. Earnest money can be as low as $0 or as high as the buyer wants to make it. If you are a serious bidder bidding on a house that should probably sell very quickly or you really want a house very badly it may not be a bad idea to give a large earnest money deposit with your bid. A very large earnest money deposit (say 10K or 20k) shows that you are a very serious bidder and you are very interested in the house. A seller is generally more apt to sell to a bidder with a large earnest money deposit than they are to someone who offers a $100 dollar earnest money deposit. If something happens and the buyer tries to back out of the deal at the end the seller will have a lot more to gain from the large earnest money deposit than the smaller one. This is a good reason to consult with your realtor and mortgage consultant early on so that you can figure out what a good earnest money deposit may be for you and your financial situation.
Money that you give to the home owner to insure an offer to buy the home. The earnest money will be applied to the final price of the house, but will be forfeited if you back out without legal cause.
Earnest money is still needed even if you obtain 100% financing. If so, the money will be applied to the closing costs associated with your loan.
Settlement Cost Booklet - This booklet is from HUD and must be given to every buyer. The booklet explains all the cost involved in the real estate transaction. This book as the following information in it: Settlement process and charges, consumers rights, an item by item look at settlement services and cost, how to negotiate a sales contract, and how to choose an attorney.
The Settlement Cost Booklet explains the role of the real estate broker. Usually, the first person you talk to about buying a home is a real estate agent or broker. Although real estate brokers will generally provide helpful advice about home buying and the process, they may serve the interests of the seller instead of your best interests.
401K for downpayment - Many home buyers today opt to use funds from their employer’s 401(K) program to come up with the down payment on a house. Ordinarily, you cant take money from your 401(K) plan unless you retire, leave the company or become disabled, but many company plans permit certain “hardship withdrawals” when there is an immediate and heavy financial need, including the purchase of the employees principal residence.
The drawback to a hardship withdrawal is that you will pay taxes and penalties on the amount withdrawn from your plan, which often must be paid in the year of withdrawal. And while hardship withdrawals are allowed by law, your employer is not required to provide them in your plan. Check with your employer’s human resources department if youre not sure if your 401(K) plan allows hardship withdrawal.
Another approach may be to borrow against your 401(K) – often as much as 50 percent of your account balance. You pay interest on the loan, but the interest goes back into your account. The money you receive is not taxable as long it is paid back and plans can give you anywhere from five to 30 years to pay back your loan.
There are risks involved in borrowing from your 401(K). If you lose your job or leave your employer, you must pay back the loan in full within a short period, sometimes as little as 60 days. If the money is not paid back in that time, it is considered a withdrawal from your plan and subjected to the same taxes and penalties. And while 401(K) accounts can usually be rolled over into a new employer’s 401K without penalties, loans from a 401K cannot be rolled over.
In addition, because the funds withdrawn from your account are no longer earning compound interest, your account will be smaller when you retire. And you’ll be replacing pretax money with after-tax money.
Some lenders will count the money you borrowed from your 401(K) as an additional debt that will go along with your car payments, student loans and credit cards. While it may seem unfair since you are borrowing your own money, most lenders view it as a payment obligation that affects your debt-to-income ratio in qualifying for a home loan. It may be a factor in whether you decide to make a hardship withdrawal from your 401(K) and pay tax penalties or borrow against it.
Rather than actually borrowing money against your retirement account, you can also use the account as an asset. Having high balance assets makes it easier for a lender to see your credit worthiness in lieu the required down payment.
If down payment is a problem and you don't want to borrow against your 401(k) then consider 100% financing
which requires little or no money down.
Down Payment Loans and Gifts - Down Payment Loans and Gifts
Loans and gifts can help with your down payment but you can not use this strategy for all loan programs. The most popular program for this tactic is the Federal Housing Administration or FHA. FHA allows 100% gift funds for your down payment. The gift can be from any relative or can be collected through new innovative programs, like the Bridal Registry where couples receive money into an account that can be used for the down payment.
Another popular tactic, which can be used in a wider range of programs, is to borrow from your 401K program. If you have a 401K program with your employer, you can withdraw without a penalty for your down payment and pay it back over a specified period. There are some drawbacks, the payment will be used in qualifying and your 401K account will not continue to grow as fast. Even with these drawbacks, it is often a smart move if this is your only option.
Gift programs are available to first-time homebuyers, low- and moderate-income individuals and families who wish to achieve homeownership.
Any time money is obtained from a loan for a down payment this new loan needs to be calculated into your debt to income ratio. This applies to any loan whether it is borrowing against your own 401k, a personal loan, or a home equity line of credit on another property.
Often a lender will only allow a percentage of the down payment to come in the form of a gift. Depending on the lender it can be as low as 5%.
For any gift funds used toward downpayment, you must provide documentation that the funds are indeed a gift and not a loan that must be repaid. Your loan officer can help you with this.
There is even a gift program that allows people to sponsor a CD for you. The benefit with this program is that the person making the deposit will retain their money, and gain interest on the investment. Talk to your mortgage professional about this program.
