Home Grants for College Graduates
At the tail end of October ’09, when we thought the last first-time home buyer tax credit was coming to a close, there was a new grant program announced in Ohio. In most cases, it went unnoticed and was overshadowed by the mad rush to close on a home by November 30th, the initial due date of the home buyer tax credit.
This program was missed by many but remains in effect until further notice from OHFA (The Ohio Housing Financing Agency). It is called the Grants for Grads program and promises a grant in the amount of 2.5% of the purchase price to any college graduate who attended a High school in Ohio. Essentially the money can be used to pay for the down payment, closing costs or other prepaid expenses incurred prior to closing. The best part is that the program can be used in conjunction with the federal $8,000 first-time homebuyer tax credit.
How does it work?
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 the buyer moves out of Ohio prior to the five-year mark a portion of the grant must be paid back to OHFA. In addition the graduate must apply for the grant within 18 months of receiving an associate’s, bachelor’s, master’s, doctoral or other postgraduate degree.
In summary, in order to qualify for the program you must:
1. Have graduated from an Ohio high school
2. Have a college degree
3. Be a first-time home buyer
4. Meet specific income guidelines
5. Apply for the grant within 18 months of graduating from an educational institute recognized by the Ohio Board of Regents
6. Obtain a mortgage through an OHFA participating lender
In addition, you must either:
– Complete a free home buyer 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.
For more information and income guidelines, please visit the Grants for Grads page on the OHFA website at http://www.ohiohome.org/homebuyer/grantsforgrads.aspx .
If you are looking for a qualified lender who can issue you an OHFA loan or grant please contact us at 513-527-3060 or firstname.lastname@example.org .
Team Annett Office