DOWN PAYMENT ASSISTANCE PROGRAMS
It's a good time to be a Buyer. Especially a First-time Buyer.
Even though the $8,000 tax credit is not currently available, there are other programs out there available for you through the State, County, and certain Cities have their own incentives for first-timers.
Here's a snapshot of just a few of them. Please contact me for detailed information.
Cuyahoga County Department of Development
First-time Buyers only and based on household income. Income limits are set by HUD and subject to change. Maximum assistance available cannot exceed 17% of the sales price or $10,000, whichever is less.
You must have three percent (3%) of the sales price in your own funds. You also must participate in free pre-purchase counseling and attend free home maintenance training.
You must reside in the home as your principal residence. The "loan" is deferred until you sell or transfer title to someone else. After 5 years of occupancy, the loans are 50% forgivable.
If you apply for a "Diversity Opportunity Loan", meaning you purchase in a community with a qualified census tract showing that community is racially under-represented, then the loan is forgiven 100% after 5 years. [This program may not be available in all participating communities.]
Properties must be inspected by the City or Village for code violations and by the County staff (usually for defective paint). If the loan you've qualified for is FHA, there will be a 3rd inspection - and it's my recommendation that you always, always have your own private inspection. That's critically important.
Caveat: Please be aware that these programs are subject to change and can be terminated based on availability of funds. Please also note that you must apply for DPA programs before writing and submitting an offer on a house. Please contact me for additional information.
Neighborhood Housing Services DPA
This program became available in 2009 or 2010...and I haven't had a client utilize it yet, but it promises to be a terrific shot in the arm for the housing market.
This program is open to ALL buyers - but it must also be owner-occupied.
Buyer must buy a foreclosed property. Buyer must meet income guidelines (which are pretty generous). Buyer must remain in the home as a principal residence for 10 years and the loan is forgiven! Areas are limited to 18 communities.
DPA loan amount for this NHS Program......$39,900!!!
Please contact me for additional information.
State of Ohio - Ohio Housing Finance Agency (OHFA)
The State offers 2.5% towards your down payment. There are income limitations for this program, as well. The program changes from time to time, so please contact me and I'll refer you to a lender who works with OHFA.
Cities and Villages
Many cities in our area offer their own programs - two that I'm familiar with are Cleveland Heights and Shaker Heights.
This is very similar to the County DPA program, requiring 3% of borrower's own funds, household income limitations, and pre-purchase counseling.
The difference with Cleveland Heights' program, for example is that you are allowed up to $15,000 for a single family or two-family home, and $20,000 towards single family new construction or a Cleveland Heights' approved condo conversion home.
Please contact me for additional information.
Update: Euclid has a New DPA effective 5-21-10 !!!
Euclid is offering a new program to assist buyers with 17% of the purchase price up to $14,500 to use towards their down payment! This program went into effect May 21, 2010. Similar to other programs there are household income limitations and pre-purchase counseling is required. Fifty (50%) percent of the loan is "forgiven" after you live in the home for 5 years; the remaining 50% is not payable until you sell the house. Please call me for more information.
Note: Please remember that I can only disseminate detailed financing information to buyers who've requested I represent them as their buyer's agent and who've signed the State-required forms.
All of the foregoing information is true and accurate to the best of my knowlege, but programs may be changed at any time without prior notice. Mortgage lenders, however, can offer up-to-date information ~ don't hesitate to ask.
