One of the first questions buyers ask when they start looking in Centerville or Washington Township is how much cash they’ll actually need to get into a home. For many first-time buyers, the answer is less than they assume, thanks to a handful of state and federal programs built specifically to lower that upfront cost. Here’s a general look at how those programs work.
What Counts as a First-Time Homebuyer
Most programs define a “first-time homebuyer” more loosely than the name suggests. Typically, it means you haven’t owned a home in the past three years, rather than never having owned one at all. That definition can open the door for someone who sold a home years ago and has been renting since, so it’s worth checking the specific rule for any program you’re considering rather than assuming you’re automatically excluded.
Ohio Housing Finance Agency Programs
The Ohio Housing Finance Agency, usually referred to as OHFA, runs the state’s main first-time buyer programs. These typically pair a fixed-rate mortgage with down payment assistance, and they’re designed to work alongside conventional, FHA, VA, or USDA loans rather than replace them. Eligibility generally depends on household income and the purchase price of the home, both of which vary by county and household size, so the right move is to confirm current figures directly with OHFA or a participating lender rather than relying on numbers from a prior year.
Down Payment Assistance Options
Down payment assistance through these programs usually comes in one of two forms: a grant that doesn’t need to be repaid, or a forgivable second loan that’s forgiven over time as long as you stay in the home. Some assistance is structured as a deferred loan, repaid only when you sell, refinance, or pay off the first mortgage. Each structure comes with its own strings attached, so it’s worth asking a participating lender to walk through exactly how the assistance you’re offered would work, and what would trigger repayment.
Working These Programs Into Your Home Search Locally
Not every lender participates in every program, so one of the earliest steps is finding a lender who works with OHFA or other assistance programs regularly. Getting pre-approved with that piece already factored in gives you a realistic number to search with, and it helps your agent write an offer that a seller will take seriously, since sellers generally want to know that financing is solid regardless of how the down payment is funded. Centerville and Washington Township see a mix of buyers using these programs alongside more traditional financing, so there’s nothing unusual about bringing it up with your lender or agent from the start.
Frequently Asked Questions
Do I have to be buying my very first home ever to qualify?
Not necessarily. Many programs define a first-time buyer as someone who hasn’t owned a home in the past three years, so it’s worth checking the specific program’s rule rather than assuming you don’t qualify.
Can these programs be combined with an FHA or conventional loan?
Yes, in most cases. OHFA’s programs are generally designed to pair with FHA, VA, USDA, or conventional financing rather than stand on their own.
Is there an income limit for down payment assistance?
Most programs do set income and purchase price limits, and those limits vary by county and household size. A participating lender can confirm the current limits that would apply to your situation.
Where do I start if I think I might qualify?
Start with a lender who participates in OHFA or similar programs, since not every lender does. From there, pre-approval will show you what you actually qualify for before you start touring homes.
Kelly Nation is a real estate agent with RE/MAX Alliance serving Centerville, Ohio, Washington Township, and the greater Dayton area. Thinking about buying or selling in the area? Reach out to Kelly Nation with RE/MAX Alliance at 937-609-5852 to get started.
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