Purchasing your first home is an exciting milestone, but it can also be daunting with so many financing options available. To help you navigate this journey, I’ve partnered with colleague and loan officer, Christopher Bullock from Cross Country Mortage, to provide you with a comprehensive overview of some of the most beneficial first-time buyer programs. Whether you're looking for down payment assistance or reduced interest rates, these programs could be the key to opening the door to your new home.
OHFA (Ohio Housing Finance Agency)
OHFA is a state agency that provides homebuyer education, reduced interest rates, and down payment assistance for first-time homebuyers, Heroes, and recent graduates. The down payment assistance varies from 2.5% - 5% and the interest rates adjust depending on the amount of assistance you choose. You can never have owned a home in your life to qualify for this program. You can qualify for this program with either an FHA or Conventional loan, however a minimum credit score of 650 is required. The assistance is a second lien against your property that will be forgiven after living there for 7 years.
For more information, visit the OHFA website.
HomeReady / Home Possible
HomeReady and Home Possible are programs within the umbrella of conventional lending. Assuming you qualify for a conventional loan and make under 80% of the area medium income, you will qualify for this program. Conventional loans typically require a 700+ credit score or a sizeable down payment (usually 10%+). With good credit, your minimum down payment could be as little as 3%. Area medium incomes are usually around $75,000 in most NEO neighborhoods. The benefits of the program are lower interest rates and reduced mortgage insurance rates.
For more information, visit the HomeReady Mortgage page.
CCM Community Promise
CCM Community Promise is a grant program that is provided in part by CrossCountry Mortgage and Fannie Mae. This will require you to qualify for a conventional loan and currently live in a specific census area that qualifies. The benefits include a $6,500 down payment assistance grant to be used in your choosing and a $500 credit towards appraisal costs at closing.
CCM Smart Start
CCM Smart Start can be coupled with HomeReady to give you a 2% down payment assistance grant up to $5,250 total. Max down payment is 5% and must qualify for a conventional loan with 80% area medium income limits.
FHA
FHA is federal government loan program that will insurance the home loan entirely in the event of a default. Because the government guarantees the loan, the qualifications for this program are lower. Credit scores can be as low as 500 with a 10%+ down payment. Minimum down payment of 3.5% is available on credit scores 580-620 but may require compensating factors such as additional funds in savings outside of the transaction. 640+ credit scores may have less requirements and possibly higher maximum budget.
For more information, visit the FHA website.
Contact Us for Personalized Guidance
Navigating these programs can be complex, but you don’t have to do it alone. Christopher can help you find the best financing options tailored to your unique situation. For more information or to get started on your homebuying journey, feel free to contact me or Christopher:
Christopher Bullock's Contact Information:
- Email: [email protected]
- Phone: 440.587.0044
- Website: http://www.ccmbullock.com/
If you have any questions or need further assistance, please don't hesitate to reach out. We're here to make your dream of homeownership a reality!
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