New FHA Requirements

As volatility in the financial market continues, offering a product that meets the needs of first-time homebuyers has become increasingly difficult. The ability to obtain capital to continue our programs is severely limited. Despite recent rate increases, program volume has continued at a pace that can not be sustained. It has become evident that down payment assistance, not interest rate, is the primary reason today’s homebuyers select an Ohio Housing Finance Agency (OHFA) mortgage.
To protect and continue our core First-Time Homebuyer Program, the Agency will temporarily discontinue our down payment assistance programs, effective at 8:00am October 13, 2008. This announcement applies to both second mortgage loans and down payment assistance grants. We will honor reservations for loans with down payment assistance made prior to this announcement.
OHFA’s mission is to “open the doors to an affordable place to call home” for Ohio families and we are proud to have helped thousands of borrowers through our down payment assistance programs. It is a difficult decision to suspend these programs, but it is now imperative that we devote increasingly scarce resources effectively.
Borrowers can still purchase their home using the First-Time Homebuyer program.
We will continue to evaluate our programs and respond to the market as necessary. We appreciate your patience as we work to preserve the program that for 25 years has helped thousands of Ohio borrowers purchase their first home.