Homeport administers this Down Payment Assistance Program in order to assist low- and moderate-income households in financing the acquisition of a home. To be eligible, you must meet program guidelines. The funds for this program are limited. As such, they will be available on a first-come, first served basis.
Homeport received a grant from the Ohio Housing Trust Fund to provide down payment assistance to eligible Franklin County residents. The State periodically reviews these regulations and from time to time may make modifications, which Homeport may have to institute to remain in compliance with the grant regulations.
Geographic Location - The property must be located inside Franklin County.
Eligible Property - The property must serve as the principal residence for the borrower. The type of property can be an existing residential single family home that is decent and safe or newly constructed residential property, which has received a Certificate of Occupancy. The home must be in compliance with local housing codes.
The applicant(s) must be a first-time homebuyer, or must not have owned a home in the past three years.
The applicant(s) must earn at or below 65% of the HUD income guidelines for Columbus metropolitan service area‘s median income adjusted for family size. Total household income is used when calculating gross income.
The applicant(s) must not have liquid assets which exceed $5,000 (excluding 401K and pension funds).
Homeport will administer down payment and closing cost assistance to eligible homebuyers in the form of 0%, deferred loans. These loans will be forgiven after five (5) years. The entire balance will be due and payable at resale or transfer during the first five (5) years. The loan amount represents 3% of purchase price or maximum of $3000.00 whichever is less, to be applied toward the required down payment and closing costs.
At the time of application to Homeport for down payment assistance, the buyer must have $500 of their own funds available, exclusive of loans or credits, to contribute as equity. If the first mortgage loan is a FHA insured loan, the borrower must have an investment of 3% of the purchase price from other acceptable sources. These funds may include amounts paid for the purpose of credit report fees, appraisals, inspections and/or down payment.
The applicant will execute a Note and a Mortgage Deed with Homeport on behalf of the Ohio Department of Development as evidence of the loan. To assure long-term affordability, the Note stipulates that if the beneficiary does not remain in the home for five years, the loan will become due and payable. Subletting or renting, even on a temporary basis, is not permitted. The applicant must return to Homeport for an additional budgeting counseling session within 6 months after closing on the loan.
The first mortgage loan must be a conforming fixed interest rate. The interest rate may be no more than 2% more than the current market rates.
This down payment assistance loan is not assumable by a third party. The Mortgage Deed signed by the applicant will prohibit additional loans on the property.
If FHA financing is obtained, a complete copy of the FHA appraisal with Valuation Condition Sheet must be supplied with the application to Homeport. If the applicant obtains a Conventional loan, a copy of the home inspection should be supplied to Homeport. Homeport assumes no responsibility to borrower, the Ohio Housing Trust Fund, or any other person with respect to Homeport’s review of an appraisal, inspection report, or inspection of the Property, and may not be relied upon by the borrower for any purposes whatever.
Homebuyer Education must be provided by Homeport or any other HUD certified housing counseling agency and a certificate of completion must be submitted to Homeport at time of application. No Fast Track to Quick Start certificates will be accepted.
To find out more about this program please call Call 614-221-8889 ext 148