down payment assistance

The Ohio Housing Finance Agency (OHFA) had one of the few and perhaps the only program left where first-time home buyers could receive a second loan to borrow the 3% down payment that is now required. As of this week, OHFA has temporarily had to stop this program. The only way to get a loan without a 3% down payment now is to receive it as a gift. As of January first, the down payment amount increases to 3.5% so if you are thinking about purchasing a home this winter, you might consider buying a little earlier.

Some builders have also started a work equity program where buyers can actually help build their own home in lieu of the 3% down payment.

One other good thing to know...sellers can still contribute up to 3% of the purchase price for a conventional loan or 6% for an FHA loan to go toward the buyer's closing costs or discount points, but not the down payment. If you're selling a home now, this could be a great incentive to get it sold!