Ohio’s main down payment assistance program changed in July 2025, and a surprising number of sources — including one of OHFA’s own outdated PDFs — still publish the old numbers. If you have read that Ohio offers “2.5% or 5%,” that program no longer exists.
There is also a structural detail that matters more than the percentage: Ohio’s main assistance is a cliff, not gradual forgiveness. Here is the current picture.
What OHFA actually offers now
Effective July 1, 2025, the Ohio Housing Finance Agency retired the two-tier “Your Choice!” program and replaced it with a single tier:
- 3% of the purchase price with a conventional loan.
- 3.5% with FHA, VA or USDA-RD financing.
The structure is a seven-year forgivable second mortgage — and it is a cliff. OHFA’s language is direct: if you sell your home within seven years, you must repay all of the assistance. There is no annual burn-down. Sell in month 83 of 84 and you owe the entire amount.
That is unusually harsh compared with most states, where forgiveness burns down monthly or annually. Seven years is also longer than the median first-time buyer stays put. Go in knowing there is a real chance you repay this in full.
If you see “2.5% or 5%” quoted anywhere — including on major mortgage sites or a stale OHFA PDF last revised in December 2022 — that is the retired program. OHFA’s current Programs at a Glance sheet supersedes it.
Grants for Grads — which, despite the name, is not a grant
This is Ohio’s program for recent graduates, and it has a better structure than the main product.
- Same assistance tiers: 3% conventional, 3.5% government.
- Five-year forgivable second mortgage, forgiven at 20% per year — prorated, not a cliff.
- The repayment trigger is leaving Ohio, not simply selling your home.
Note the reversal, because it is counterintuitive: the shorter-term product is the more forgiving one. The main assistance runs seven years with all-or-nothing forgiveness; Grants for Grads runs five and burns down a fifth each year. If you qualify, it is structurally the better deal.
One honest caveat: OHFA’s consumer page reads as though Grants for Grads is a cliff (“forgiven after five years”), while its lender-facing document states principal is reduced 20% per year. The lender document describes the actual note, so that is what we cite — but ask your lender to confirm in writing.
Ohio Heroes and the other programs
Ohio Heroes is frequently listed as down payment assistance. It is not — it is a 0.25% rate discount for qualifying public service workers. You can add the standard 3%/3.5% assistance on top, but that carries the same seven-year cliff.
Next Home serves buyers who are not first-time purchasers, on the same assistance terms. FTHB Edge covers first-time buyers in non-target areas whose income exceeds the non-target limit but falls under the target limit, at a higher note rate.
OHFA also offers Mortgage Tax Credit certificates — Basic at 15–20% and Plus at 40%. Those are tax credits rather than down payment help, but they stack and are worth asking about.
The one true grant in Ohio
Communities First — Ohio is the only statewide program in Ohio that is a genuine grant with no repayment obligation. It is administered by the Port of Greater Cincinnati Development Authority, not by OHFA — so your OHFA lender may never mention it.
Its materials state there is no repayment obligation and no restriction on selling or refinancing. Two features make it unusually accessible: the income test is 115% of area median by county regardless of family size, and it counts only the qualifying borrower’s income, not total household income. Minimum credit score 640.
We could not verify the exact grant percentages on the program’s own site — a third-party source cites 3%, 4% or 5% tiers — so ask a participating lender for the current figure rather than relying on a published number.
Limits, credit and education
Ohio sets limits on a three-way grid: county, household size (1–2 versus 3+), and target versus non-target area. Figures effective July 1, 2026:
- Franklin County (Columbus): income $111,500 for one or two people, $128,225 for three or more; target $133,800 / $156,100. Purchase price $618,475 non-target, $755,913 target.
- Cuyahoga County (Cleveland): $105,000 / $120,750; target $126,000 / $147,000. Price $566,355 / $692,211.
- Hamilton County (Cincinnati): $109,900 / $126,385; target $131,880 / $153,860. Price $566,355 / $692,211.
Franklin County carries higher price limits because of the Columbus MSA high-cost designation.
Credit minimums are 640 for conventional, USDA and VA, but 650 for FHA — worth noting, since FHA is usually the more forgiving option elsewhere. Debt-to-income runs 45–50% depending on score and loan type. Homebuyer education is required for every product except the basic tax credit.
Ohio has no first-generation buyer program, despite occasional claims otherwise.
How to play it
- If you graduated recently, check Grants for Grads first — 20% annual forgiveness beats a seven-year cliff by a wide margin.
- Ask a lender about Communities First Ohio separately. It is the only true grant, and because it is not an OHFA product it often goes unmentioned.
- If you are taking the standard OHFA assistance, be honest about your seven-year horizon. Selling at year six means repaying every dollar.
- Verify your county limits against the July 2026 table — the number depends on county, household size and target status together.
- If you are a public service worker, claim the Ohio Heroes rate discount, but understand it is a rate cut rather than assistance.
Frequently asked questions
Does Ohio still offer 2.5% or 5% down payment assistance?
No. OHFA retired the two-tier “Your Choice!” program on July 1, 2025 and replaced it with a single tier: 3% of the purchase price on conventional loans or 3.5% on FHA, VA and USDA. Several major sites — and one outdated OHFA PDF from 2022 — still publish the old figures.
Is Ohio down payment assistance forgivable?
Yes, but as a cliff rather than gradually. The main OHFA assistance is a seven-year forgivable second mortgage, and selling any time within those seven years requires repaying the entire amount. There is no annual burn-down.
Is Grants for Grads actually a grant?
No, despite the name. It is a five-year forgivable second mortgage, forgiven at 20% per year according to OHFA’s lender documentation. Its repayment trigger is leaving Ohio rather than simply selling the home.
Is there a true grant available in Ohio?
Yes — Communities First Ohio, administered by the Port of Greater Cincinnati Development Authority rather than OHFA. Its materials state there is no repayment obligation and no restriction on selling or refinancing. It uses a 115% AMI income test and counts only the borrower’s income.
What credit score do I need in Ohio?
640 for conventional, USDA and VA loans, but 650 for FHA — an unusual reversal, since FHA is normally the more lenient option. Lender overlays may require more.
Does Ohio have a first-generation homebuyer program?
No. OHFA offers no first-generation product. Any aggregator claiming otherwise for Ohio is incorrect.