The Ohio Grant You Keep by Staying, Not by Owning
Program and regulatory figures verified September 25, 2026. Details change; confirm your scenario with us.
Most write-ups call this a graduate grant and stop there. The interesting clause is about where you live afterwards, and it changes who the program actually suits.
The clause worth reading twice
The OHFA Government Program Guidelines describe Grants for Grads as a second loan with a five-year term and no accrued interest, forgiven at 20% per year over five years. Straightforward enough.
Then comes the sentence that sets it apart from almost every assistance product in the country. If the borrower sells the home prior to year five and provides documentation they will continue to reside in Ohio after the sale, the remaining balance will be forgiven.
Consider what that means in practice. A graduate buys a condo in Columbus, takes the assistance, and two years later takes a better job in Cleveland and sells. Under the standard OHFA Down Payment Assistance rules that sale would trigger repayment of the entire balance. Under Grants for Grads, documented continued Ohio residency forgives what is left.
The state is not really securing a house. It is securing a resident.
Against the standard assistance
| OHFA Down Payment Assistance | Grants for Grads | |
|---|---|---|
| Term | Seven years | Five years |
| Forgiveness pattern | All at once, on the seventh anniversary | 20% a year |
| Sell in year 3 | Repayment in its entirety | Forgiven, if you stay in Ohio |
| Move out of state in year 3 | Only matters if you sell or refinance | Some or all repayable |
| Units | 1 to 4 | 1 only |
Neither is simply better. If you expect to stay put in one Ohio house for seven years, the standard assistance reaches full forgiveness and covers up to four units. If you expect to move around inside Ohio, Grants for Grads is far more forgiving of that. The wider program comparison.
Who qualifies
Three tests, and the first is tighter than people assume.
- The degree, and the clock. An associate's, bachelor's, master's, doctoral or other post-graduate degree from any accredited college or university, received within 18 months from graduation date to reservation date with OHFA. The window runs from graduation, not from when you start house hunting.
- First-time buyer status. No ownership interest in a principal residence within the last three years.
- The property. Owner-occupied, in Ohio, limited to one unit. The standard assistance allows up to four; this does not.
Because the 18-month clock runs from graduation, the practical advice is to start the conversation early. A buyer who graduated 15 months ago has a real deadline on the reservation date, not on closing. Send us the graduation date and we will tell you where you stand.
On refinancing
The guidelines also address what happens if the borrower refinances the first mortgage before the term is up, and OHFA does not grant subordination when the first mortgage is refinanced. That applies across the assistance programs, so a refinance is a decision to settle the second rather than carry it forward.
What it pairs with
Grants for Grads runs on its own OHFA first mortgage and can be combined with the Mortgage Tax Credit. OHFA's consumer summary is at OHFA's Grants for Grads page. Next Home borrowers are excluded from Grants for Grads entirely, which matters for anyone who has owned before. How the tax credit stacks.
See also the full eligibility test and the income limits.
Frequently asked questions
What is Grants for Grads in Ohio?
An OHFA down payment assistance program for recent graduates, paying 3% of the purchase price on a conventional loan or 3.5% on a government loan, as a five-year second mortgage with no accrued interest that is forgiven at 20% per year over five years. It requires a degree received within 18 months from graduation date to the OHFA reservation date, first-time homebuyer status, and a one-unit owner-occupied Ohio home.
Can I sell my house and keep the Grants for Grads forgiveness?
Yes, if you stay in Ohio. OHFA's guidelines state that if the borrower sells the home prior to year five and provides documentation they will continue to reside in Ohio after the sale, the remaining balance will be forgiven. The repayment trigger is leaving the state rather than selling the property, which is unusual among down payment assistance programs and differs from OHFA's own standard assistance.
What happens to Grants for Grads if I move out of Ohio?
Some or all of the assistance becomes repayable. The program forgives 20% of the principal per year across five years, so the amount at risk depends on how far through the term you are. The forgiveness is conditioned on continued Ohio residency, which is why moving out of state is the event that triggers repayment rather than selling the home.
How recent does my degree have to be for Grants for Grads?
Within 18 months from graduation date to the loan reservation date with OHFA. The qualifying degrees are an associate's, bachelor's, master's, doctoral or other post-graduate degree from any accredited college or university. Because the clock runs to the reservation date rather than the closing date, buyers close to the 18-month mark should start early.
Can repeat buyers use Grants for Grads?
No. Grants for Grads requires first-time homebuyer status, meaning no ownership interest in a principal residence within the last three years, and OHFA's guidelines state that Next Home borrowers, who are the buyers who do not meet the first-time definition, are not eligible for Grants for Grads. Repeat buyers can still use OHFA Down Payment Assistance through the Next Home program.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Cornerstone First Mortgage is a participating lender in the Ohio Housing Finance Agency's programs. The Ohio Housing Finance Agency is an Equal Opportunity Housing entity. Loans are available on a fair and equal basis regardless of race, color, religion, sex, familial status, national origin, military status, disability or ancestry. Please visit www.ohiohome.org for more information. Educational content about financing, not a loan commitment and not legal or tax advice. OHFA program terms and limits are set by the Ohio Housing Finance Agency and change; figures here carry the date we verified them. Loans are subject to borrower and property qualification.