The OHFA Programs, Compared on What Matters
Program and regulatory figures verified September 25, 2026. Details change; confirm your scenario with us.
Ohio does not make you choose an assistance amount. It makes you choose a first mortgage, and the assistance follows. So the comparison is about who you are.
The five first mortgages
Terms below trace to the OHFA Programs at a Glance and the July 2026 program guidelines.
| Program | Who qualifies | Assistance | Notes |
|---|---|---|---|
| First-Time Homebuyer | No ownership interest in a principal residence in three years; or an honorably discharged veteran; or buying in a target area census tract | 3% / 3.5% | The standard route |
| Ohio Heroes | Military, police, fire and EMS, health care, pre-K to 12 teachers | 3% / 3.5% | Carries a discounted interest rate |
| Grants for Grads | Degree within 18 months of reservation, first-time buyer | 3% / 3.5% | One unit only; forgiven 20% a year |
| Next Home | Buyers who are not first-time | 3% / 3.5%, optional | No Grants for Grads, no Mortgage Tax Credit |
| FTHB Edge | First-time buyers over the non-target limit but under the target limit | 3% / 3.5% | Rates could be higher than standard |
OHFA publishes its rate sheet daily and we do not restate rates on this site, so where a program carries a rate difference we say so and send you to OHFA rather than quoting a figure.
Two forgiveness structures, not five
Four of the five use the standard assistance second: a seven-year term, no accrued interest, subject to repayment in its entirety if the property is sold or refinanced within the first seven years, and forgiven on the seventh anniversary of the note date when the lien is released.
Grants for Grads uses the five-year ladder instead, forgiven at 20% per year, with the sale of the home surviving intact so long as the borrower documents continued Ohio residency. The detail.
That is the real fork in the road. Everything else is an eligibility question.
Next Home, and what it gives up
Next Home follows the same guidelines as the First-Time Homebuyer loans with three exceptions, and they are worth knowing before you count on anything.
- Not eligible for Grants for Grads.
- Not eligible for the Mortgage Tax Credit, which is the 40% credit under MTC Plus.
- Interest rates could be slightly higher than the First-Time Homebuyer program.
The Mortgage Tax Credit exclusion is the expensive one. A repeat buyer using Next Home gives up a credit that a first-time buyer would get on the same house. What the credit is worth.
Next Home also does not require you to take assistance at all. A buyer with their own down payment can use Next Home unassisted, which keeps the seven-year second off the title entirely.
Who can hold title
A detail that catches families out. On the First-Time Homebuyer and Mortgage Tax Credit programs, title is limited to occupant borrowers and their spouses. On Next Home and FTHB Edge there are no such restrictions and standard investor guidelines apply.
Choosing
Mike's read after running these: start from which first mortgage you can actually use, because the assistance percentage does not vary. Heroes if your occupation qualifies, since the rate benefit costs nothing extra in eligibility. Grants for Grads if the degree clock still permits, because the forgiveness structure is friendlier to moving. Otherwise First-Time Homebuyer, or Next Home if you have owned before and can live without the tax credit.
See also Ohio Heroes in detail, FTHB Edge and the eligibility test.
Frequently asked questions
What OHFA programs offer down payment assistance in Ohio?
Five first mortgage programs can carry OHFA Down Payment Assistance: First-Time Homebuyer, Ohio Heroes, Grants for Grads, Next Home and FTHB Edge. All pay the same assistance amount of 3% of the purchase price on a conventional loan or 3.5% on an FHA, VA or USDA-RD loan. The program that fits your household changes eligibility and sometimes the interest rate, but not the assistance percentage.
What is the difference between OHFA First-Time Homebuyer and Next Home?
Next Home is for borrowers who do not meet the first-time homebuyer definition. It follows the same guidelines with three exceptions: it is not eligible for Grants for Grads, it is not eligible for the Mortgage Tax Credit, and interest rates could be slightly higher. Next Home also allows a buyer with their own funds to proceed without taking down payment assistance at all.
Can repeat buyers get down payment assistance in Ohio?
Yes, through OHFA's Next Home program, which carries the same 3% conventional or 3.5% government assistance as the first-time programs. Repeat buyers may also qualify under the First-Time Homebuyer program itself if they are honorably discharged veterans or are purchasing in a designated target area census tract, both of which waive the three-year ownership test.
Is OHFA down payment assistance required?
Not on Next Home. OHFA's Programs at a Glance states that a homebuyer is not required to use OHFA Down Payment Assistance if they have their own down payment funds, and that Next Home can be used unassisted. Declining the assistance keeps the seven-year second mortgage off the title, which removes the repayment trigger on a sale or refinance within seven years.
Which OHFA program has the best forgiveness terms?
Grants for Grads, for a buyer who expects to move. It forgives 20% of the principal per year over five years and treats a sale as forgiven if the borrower documents continued Ohio residency. The standard assistance attached to the other four programs is forgiven only on the seventh anniversary and is subject to repayment in its entirety if the property is sold or refinanced before then.
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.