🔑 OHFA Updates Down Payment Assistance: Lower Rates, Same Big Impact
- Jim Matyas
- Jul 16
- 2 min read
Big changes are here for Ohio homebuyers! As of July 1, 2025, the Ohio Housing Finance Agency (OHFA) has updated its Down Payment Assistance (DPA) program—bringing lower assistance rates under new guidelines, while continuing to support first-time and moderate-income buyers across the state.
🆕 What’s Changing?
OHFA has adjusted its down payment assistance levels to keep up with record demand and to help more Ohioans access homeownership.
🟡 New DPA Rates (Effective July 1, 2025):
Conventional loans: 3% assistance
Government loans (FHA, VA, USDA): 3.5% assistance
🔻 Previous DPA Rates (Before July 1, 2025):
Most borrowers received up to 5% assistance
This means that while assistance levels are lower than before, OHFA is aiming to stretch resources further, reaching more buyers while maintaining long-term sustainability.
💬 Why the Change?
OHFA experienced record-high participation in 2024—with over $1 billion in assistance reservations. Forecasts show that demand could exceed $1.5 billion by the end of June 2025. To meet demand and protect the future of the program, OHFA reduced the percentage of assistance offered—but kept its terms buyer-friendly.
💡 What You Still Get
Even with the reduced assistance rates, OHFA continues to offer powerful benefits:
💰 Forgivable assistance — no repayment required if you stay in the home for 7 years
📘 Homebuyer education included
🔍 Lenders across Ohio ready to help you apply
🧾 Can be used for down payment, closing costs, or other upfront expenses
✅ Who's Eligible?
To qualify under the new program:
Must meet income & purchase price limits
Minimum credit score: 640 (Conventional/VA/USDA) or 650 (FHA)
Meet DTI (Debt-to-Income) ratio guidelines
Complete homebuyer education through an approved course
Plus, OHFA has updated income targeting, meaning targeted and non-targeted areas now follow one income limit structure.
🎯 The Big Picture
🏡 Final Thoughts
Even with slightly reduced rates, OHFA remains one of the most accessible homebuyer assistance programs in the country. Whether you're buying your first home or just need help getting across the finish line, this updated DPA program still offers:
🛠️ Flexible usage
💸 Long-term savings
🧑🤝🧑 Inclusive options for diverse buyers across Ohio
📍Ready to get started?
Visit MyOhioHome.org or connect with an OHFA-approved lender to take the first step toward homeownership.
Have questions about how this change impacts your buying power? Let’s talk about the best loan options and programs for you!
Comments