Use The Ohio Homebuyer Tax Credit Advantage Loan Program For Down Payment

If you are thinking of buying your first home in Ohio and you need some down payment assistance or help with your closing costs the Ohio Housing Finance Agency (OHFA) may have just the program for you.
Qualified first time home buyers are eligible for a Federal Home Purchase Tax Credit and OHFA has developed a way to allow qualified buyers to take advantage of the tax credit to buy a home in 2009. OHFA has developed the Homebuyer Tax Credit Advantage Loan Program. Learn more about the Federal Home Purchase $8000 Tax Credit.

Information About The OHFA Homebuyer Tax Credit Advantage Program

You must qualify for and use one of OHFA’s first mortgage home loan programs to be eligible to use the short term loan program. These first mortgage programs are the OHFA first time home buyer programs and the Ohio Heroes Program.

You can get up to 3% of the purchase price of the home from the OHFA Homebuyer Tax Credit Loan Program in the form of a second mortgage. If the 3% does not cover all the money you need to get your mortgage you will need to come up with the balance due.

The loan can be used for paying down payment, closing costs and to recoup any pre closing expenses like paying for an appraisal and a home inspection.

The loan is interest and payment free until August 1, 2010. If you have not repaid the loan from your tax credit refund check from your 2010 tax filing the interest rate on the loan will be set at 1% higher than the first mortgage interest rate.

If you have not paid the short term tax credit loan back by the end of July 2010, you will start making payments on the mortgage August 1, 2010.

You will have to complete a free home buyer education course from a HUD-approved housing counseling agency, or you can tak the OHFA streamlined homebuyer education program.

Ask your loan officer about the incentives to payoff the Homebuyer Tax Credit Advantage Loan by June 30,2010.

You must use an OHFA approved mortgage lender to apply for any OHFA mortgage program. Visit the OHFA web site for more information.