Tips for first-time homebuyers in Hilliard

Top places in OhioDecember 18, 2019

The housing market continues to grow in Hilliard, Ohio. Here you can find low mortgage rates, job, and salary growth. The driving demand is inviting new buyers to get into the market. In fact, a large part of the new entries into this housing market are millennials and first-time homebuyers in Hilliard. However, sometimes the road to homeownership can be a winding one. But movers Hilliard Ohio will help you with all the steps! Let’s start with finances because being financially prepared is key.

How to get the money for your first large purchase?

The state of Ohio collaborates with mortgage companies, lenders and credit unions to offer amazing home loan opportunities and storage Hilliard Ohio solutions. That something first-time homebuyers in Hilliard can truly benefit from. Especially if they are on low and moderate incomes.

A graph chart, calculator, hand with a pen
Additional down payment and closing cost help are available for first-time homebuyers in Hilliard
  • The Ohio Housing Finance Agency (OHFA) helps lower and moderate-income first-time homebuyers in Hilliard to get 30-year, fixed-rate conventional, Federal Housing Administration, Veterans Affairs and U.S. Department of Agriculture Rural Development mortgages. These require relaxed income and have purchase price limits.
  • OHFA also offers a number of programs that assist first-time homebuyers in Hilliard and others buying a property. Which increases the number of local relocations, of course. Offered benefits will include lower mortgage rates, down payment help, tax credits and combined financing for both purchasing and renovations. Besides regular eligibility rules, note that each program may come with additional requirements.

About OHFA and eligibility requirements of first-time homebuyers in Hilliard

  • You have to pass a free homebuyer education course after submitting a mortgage application
  • Down payment assistance is available for first-time homebuyers in
  • Hilliard after seven years, except if the home is sold or refinanced during that time
  • There are limits on the purchase price and borrowers’ incomes, which vary by county and the number of people in a family
  • A minimum credit score is 640 for conventional mortgages 
  • A minimum credit score is 660 for other Housing Finance Agency loans
  • Each type of loan has its own debt-to-income requirements
  • Veterans who’ve been honorably discharged are eligible for loans. They do not have to be first-time home buyers.
  • Eligible property types for these programs include existing single-family homes, duplexes, triplexes, four-floor properties and condominiums; one-unit existing modular homes; and newly-built single-family homes.

First-time homebuyers in Hilliard, Ohio Assistance Programs

1. Homebuyer Hilliard program

First-time homebuyers in Hilliard have a few financing options such as FHA, VA, USDA Rural Development and conventional mortgage loans. All with affordable 30-year fixed rates. The credit score minimum requirement is 640 on conventional, VA, USDA and FHA 203(k) mortgages. Or 660 on non-203(k) FHA loans. Limits on income also apply, as well as the purchase price and debt-to-income ratio. Buyers can easily find participating lenders along with income and purchase-price limits. These loans, although they have somewhat different rules, are accessible to qualifying repeat buyers. Simply look up the OHFA Next Home program. 

Piggy bank with some coins
For borrowers whose income is 80% or less of the median income in their county, a 0.5% grant is available

2. Mortgage tax credit for first-time homebuyers in Hilliard

First-time homebuyers in Hilliard who can combine an OHFA mortgage and a down payment assistance program can be eligible for a mortgage credit certificate. However, the catch is to be able to meet income and purchase price guidelines. The certificate has a tax credit allowance of up to 40% of the borrower’s annual mortgage interest. It can also be used annually for as many as 30 years if the property in question is your primary residence. Lower tax credits are available if you are first-time homebuyers in Hilliard using a non-OHFA mortgage.

You’ll need an IOU tax balance receipt to claim the deduction. And you will find a limit on the maximum amount of possible credit. Your credit cannot be more than you owe – after the deductions! Borrowers who want to apply for this tax credit can also get down payment assistance for up to 2.5% or 5% of the home’s purchase price.

3. Down payment assistance

First-time homebuyers in Ohio and repeat buyers can qualify for down payment assistance of either 2.5% or 5% of their home’s purchase price. The larger assistance can come if you choose a higher interest rate. You can use the money toward your down payment, lowering costs or other qualifying expenses. After seven years, the state forgives financial assistance. If you sell your home to move to another residence or refinance your place before that, you’ll have to repay the money.

4. Ohio heroes grant

Ohio Heroes is a discounted mortgage grant for eligible first-time homebuyers in Hilliard and repeat eligible. They have to be members of helping professions, including veterans, active-duty military members or reservists, which includes surviving spouses. The list goes on, with police officers paid and volunteer firefighters, emergency medical technicians, paramedics, physicians, nurse practitioners, registered nurses, licensed practical nurses, state tested nurse aides, pre-K through grade 12 teachers, administrators, and finally, counselors. The amazing thing here is that you can combine Heroes discount with down payment assistance!

Money in a metal case for first-time homebuyers in Hilliard
Borrowers who earn over $25,000 and up to $40,000 qualify for a 0.5% grant; and a borrower who makes $25,000 or less would qualify for a 2% grant.

5. Grants for graduates

Recent graduates have the incredible opportunity to become eligible for two homebuying incentives in Ohio! Because these incentives are designed to keep them in Ohio after college. You’ll be eligible if you’re first-time homebuyers in Hilliard. Or in case you earned an associate’s, bachelor’s, master’s or doctoral degree from an accredited college recognized by the U.S. Department of Education in the last past 48 months.
The program has an offer for a discounted mortgage interest rate, that you can also combine with down payment assistance for 2.5% or 5% of the home’s purchase price. The state will forgive the assistance after five years unless you sell the home and leave Ohio before it expires. In that case, you’ll need to repay some or all of it.

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