OHFA Down Payment Assistance: What Ohio First-Time Buyers Need to Know in 2026

By Amy Warren, Ohio REALTOR®

With mortgage rates still sitting well above 6 percent, saving for a down payment is the biggest hurdle I hear about from Ohio buyers right now. It's also one of the most-searched real estate topics this year. The good news: Ohio has a program built specifically for this problem, and a lot of buyers don't realize how much it can cover. Here's how OHFA's Down Payment Assistance program actually works, and how to make sure the details below are still current before you count on them. If you're still weighing whether now is even the right time to buy, my post on renting vs. buying in Ohio is a good place to start.

A quick note before we dive in: OHFA's down payment assistance funds are allocated on a rolling basis, and the program has adjusted its terms before when demand surged (it moved from a richer benefit down to the current 3%/3.5% structure in mid-2025 after reservation volume spiked). Because availability and terms can shift with little notice, treat the numbers below as a starting point and confirm current status with an OHFA-approved lender before making a decision.

What OHFA Down Payment Assistance Covers

The Ohio Housing Finance Agency (OHFA) offers 3 percent of your purchase price for conventional loans, or 3.5 percent for government-backed loans (FHA, VA, and USDA-RD). That money isn't limited to your down payment alone; it can also go toward closing costs or other pre-closing expenses. Paired with a 30-year fixed-rate loan, this is often the difference between buyers who are ready now and buyers who feel stuck waiting to save more.

You Don't Have to Pay It Back (Usually)

This is the detail that surprises most people: the assistance is a forgivable second, not a loan you're stuck repaying. If you stay in the home for seven years, the entire amount is forgiven. If you sell or refinance before the seven-year mark, you'll need to repay what you received, so it's worth factoring that timeline into your plans if you think you might move sooner.

Credit Score and Qualification Basics

Eligibility comes down to three things: credit score, debt-to-income ratio, and income/purchase price limits for your loan type.

• Conventional, USDA, and VA loans:640 credit score or higher

• FHA loans:650 credit score or higher

Income and purchase price limits vary by county and household size and are updated periodically, so don't assume you're over the limit without checking current numbers with a lender. As one example, Franklin County's limits are around $102,100 for one to two person households and $117,415 for three or more, but always verify current figures since these do change.

The Homebuyer Education Requirement

Qualifying buyers must complete a free homebuyer education course through a HUD-approved counseling agency in Ohio. This is typically completed after you've already submitted your loan application, not before, so it doesn't hold up your house hunting. Many buyers actually find the course helpful for understanding the full process, especially if this is their first home.

It's Not Just for First-Time Buyers

A common misconception is that OHFA programs are only for first-time buyers. While many OHFA loan products are limited to buyers who haven't owned a home in the past three years, other programs, like Ohio Heroes for military members, veterans, and first responders, or Next Home, have different eligibility rules. If you've owned before but think you don't qualify for any assistance, it's worth double-checking with a lender before ruling it out.

Why This Matters More in 2026

Mortgage rates have stayed elevated through the first half of 2026, and a lot of would-be buyers are waiting on the sidelines hoping rates drop before they act. But waiting has a cost too, since rents and home prices haven't stopped climbing. For buyers who are otherwise ready, a program that can cover 3 to 3.5 percent of the purchase price removes one of the biggest barriers to getting started now instead of waiting indefinitely for a "better" moment that may not come.

How to Get Started

The application goes through an OHFA-approved lender, not OHFA directly. If you're not sure where to start, I can point you toward lenders in Central Ohio who work with these programs regularly and can tell you within a conversation or two whether you qualify.

Frequently Asked Questions

How much down payment assistance does OHFA offer?

OHFA's Down Payment Assistance program offers 3 percent of the purchase price for conventional loans, or 3.5 percent for government loans including FHA, VA, and USDA. The money can be used toward your down payment, closing costs, or other pre-closing expenses.

Do I have to pay back OHFA down payment assistance?

No, as long as you stay in the home for seven years. The assistance is fully forgiven after seven years. If you sell or refinance before then, you must repay the full amount you received.

What credit score do I need for OHFA down payment assistance?

You need a credit score of 640 or higher for conventional, USDA, and VA loans, and 650 or higher for FHA loans, along with meeting standard debt-to-income requirements for your loan type.

Are there income limits for OHFA programs in Ohio?

Yes. Income and purchase price limits vary by county and household size. For example, Franklin County limits are around $102,100 for one to two person households and $117,415 for three or more, though these figures can change, so check current limits before assuming you qualify.

Do I have to be a first-time home buyer to use OHFA assistance?

Not always. Many OHFA loan products are limited to first-time buyers, defined as not having owned a home in the past three years, but some programs like Ohio Heroes and Next Home have different eligibility rules, so it is worth checking which program fits your situation.

Wondering If You Qualify?

Send me a note at [email protected] and I'll connect you with a lender who can walk through the numbers with you.

Amy Warren is a licensed Ohio REALTOR® serving buyers and sellers across Plain City, Dublin, Powell, and Central Ohio. She started her real estate career in 2016 as a Transaction Coordinator in Denver, where she helped close over 650 transactions before relocating to Central Ohio in 2022 and earning her Ohio license in 2025. Visit amywarrenohiorealtor.com

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