Worried that the down payment is the only thing standing between you and a home in Westerville? You are not alone, and there is good news. Ohio’s first-time buyer options can help you reduce cash-to-close, secure a competitive rate, and even claim a tax credit. In this guide, you will learn how these programs work in Franklin and Delaware counties, what to expect in the process, and how to take your next steps with confidence. Let’s dive in.
What first-time buyer programs cover
OHFA mortgage options
The Ohio Housing Finance Agency (OHFA) offers primary mortgages through approved lenders. You can use conventional, FHA, or in some cases USDA or VA financing, with OHFA-specific eligibility rules. The value is simple: you may access competitive rates and pair your loan with down payment assistance or a Mortgage Credit Certificate.
Down payment assistance choices
Down payment assistance, often called DPA, is designed to lower your cash-to-close. These funds are commonly set up as a second mortgage at 0 percent interest that is deferred, a forgivable second that disappears after you live in the home for a set period, or a low-interest second with a monthly payment. Some DPAs can also help with closing costs. Funds are limited and may require a homebuyer education course.
Mortgage Credit Certificate basics
A Mortgage Credit Certificate, or MCC, is a federal tax credit administered in Ohio by OHFA. It lets you claim a percentage of the mortgage interest you pay each year as a credit against your federal income tax. It does not reduce your loan balance, but lenders may count the expected credit when qualifying you, which can help your buying power if you typically owe federal tax.
Federal loan types that pair well
- FHA: allows low down payment, often 3.5 percent if you qualify on credit, and pairs well with many DPA programs.
- USDA: offers zero-down financing in eligible rural areas. Income and location rules apply.
- VA: offers zero-down for eligible service members and veterans. Some DPAs will not pair with VA since the program is already favorable.
- Conventional: 3 percent down options through Fannie Mae and Freddie Mac can be paired with DPA and sometimes an MCC.
Eligibility in Franklin and Delaware counties
First-time definition and occupancy
Most programs define first-time buyer as someone who has not owned a home in the past three years, with some exceptions for veterans and other targeted groups. You must plan to occupy the property as your primary residence. Investment properties are not allowed.
Income and purchase price limits
Programs set maximum household income and purchase price limits that differ by county and household size. These limits change each year. For Westerville buyers shopping in Franklin or Delaware counties, confirm the current thresholds before you start making offers, and verify both the income cap and the purchase price cap for your household.
Credit score and property type
Minimum credit scores depend on the first mortgage type. DPAs may add their own credit rules. Eligible properties typically include single-family homes and many condos or townhomes. Condos can require extra documentation and reviews.
Where to check current rules
Limits and rules update on a regular cycle. Use OHFA’s program pages to confirm today’s income and purchase price limits for Franklin County and Delaware County, and ask your lender to confirm the latest underwriting and any education requirements.
How these programs fit Westerville purchases
Cash-to-close in practical terms
In Westerville, first-time buyers often face a down payment plus closing costs that run a few percent of the price. DPA reduces or eliminates the down payment requirement and sometimes covers a portion of closing costs. MCC does not reduce what you bring to closing, but it can improve your budget by lowering your federal tax bill each year.
Quick scenarios to visualize
- Conventional with 3 percent down: a DPA second of 3 to 5 percent can offset the down payment and help with some closing costs if the program allows it.
- FHA with 3.5 percent down: a DPA second can cover the down payment and, in some cases, part of closing costs.
- USDA or VA: zero down on the first mortgage, with closing costs paid out of pocket unless covered by seller concessions or an allowed DPA.
These are estimates. Confirm exact DPA percentages and allowed uses with your lender, since program rules vary.
Westerville and USDA eligibility
USDA loans work only in designated areas. Parts of Delaware County include USDA-eligible tracts. Many areas of Franklin County that are inside Columbus are not USDA-eligible. If you are searching near the county line, ask your lender to check the map for the address.
Condos and timing
Many programs allow condos, but approvals can add time. If you are considering a condo in Westerville, ask early whether the association has the documentation your lender needs, and plan for the condo review in your timeline.
Combining programs wisely
Common stacking approaches
You can often combine an OHFA mortgage with OHFA down payment assistance and an MCC. FHA and USDA loans frequently pair with DPA, subject to the DPA’s rules. VA loans sometimes limit additional subordinate liens, so check before you plan to stack.
Lender overlays to expect
Even if the state program allows a combination, an individual lender might not offer it. Ask these questions at the start:
- Are you an OHFA-approved lender, and do you actively originate OHFA mortgage plus DPA?
- Which DPA options do you offer, and are they forgivable, deferred, or monthly-pay?
- Do you reserve MCCs, and can you show a sample cash-to-close estimate for a Franklin or Delaware county purchase?
Timeline from prequal to keys
Typical milestones
- Education and prequalification, 1 to 7 days: talk to an OHFA-approved lender and complete any required homebuyer education.
- Loan application and underwriting, 3 to 6 weeks: your lender gathers documents, orders the appraisal, and underwrites your file. DPA applications often run in parallel.
- OHFA reservation or processing, 1 to 3 weeks: your lender may need to reserve assistance funds or issue the MCC.
- Closing, set by your contract: timing can vary based on appraisal scheduling, condo review, and lender capacity.
Build in a small buffer if you are using DPA or an MCC, since the extra verification can add steps.
Documents you will likely need
- Government-issued ID
- Social Security number
- Two years of W-2s and federal tax returns; if self-employed, two years of returns and a year-to-date profit and loss
- Recent pay stubs covering 30 to 60 days
- Bank statements for all accounts covering 30 to 60 days
- Gift letter if using gift funds
- Homebuyer education certificate if required
- Evidence of cash reserves if your loan type requires it
- Executed purchase contract and property address
How DPA changes your cash-to-close
DPA can reduce or remove the down payment you must bring to closing and may help with closing costs if the program allows it. You will still plan for the earnest money deposit, which is credited back at closing, along with prepaids and escrow setup for taxes and insurance. If your DPA is a monthly-pay second, your housing payment will reflect that. If it is deferred or forgivable at 0 percent interest, there is no monthly payment on the second, though you may owe the balance at sale or refinance if it is not forgiven.
Action steps for Westerville buyers
- Verify current income and purchase price limits for Franklin and Delaware counties using OHFA’s resources and your lender’s guidance.
- Contact two or three OHFA-approved lenders and request side-by-side quotes that include DPA and MCC scenarios.
- Complete any required homebuyer education early. Online and in-person options are available through approved providers.
- If you plan to use an MCC, speak with a tax professional to confirm how the credit may benefit you and whether any recapture rules might apply later.
- Work with an agent who has experience coordinating OHFA, DPA, and MCC timelines so your contract and financing move in sync.
Avoid common pitfalls
- Waiting to reserve DPA funds: assistance is limited and can run out during busy seasons. Start early.
- Assuming all costs are covered: many programs do not cover every closing cost or prepaid. Ask for a detailed estimate.
- Overlooking lender overlays: not every lender offers the same stacking combinations or condo approvals. Confirm before you make an offer.
- Skipping education: if your DPA requires a counseling certificate, complete it before you go under contract.
Ready to move forward?
If you want a clear, step-by-step plan tailored to Westerville, connect with a local advisor who understands OHFA lending, DPA timelines, and how to structure offers that close smoothly. Reach out to Deborah Parris to map your financing options and start your home search with confidence.
FAQs
What is OHFA and how does it help first-time buyers in Westerville?
- OHFA is Ohio’s housing finance agency that works through approved lenders to offer competitive mortgages you can pair with down payment assistance or an MCC to lower cash-to-close.
How do down payment assistance programs reduce my cash-to-close?
- DPA provides funds as a second mortgage that is deferred, forgivable, or monthly-pay, which can cover part or all of your required down payment and sometimes closing costs.
Does a Mortgage Credit Certificate lower my mortgage balance?
- No, an MCC is a federal tax credit based on a portion of your mortgage interest that can lower your income tax; it does not reduce your loan principal.
Can I use DPA funds for closing costs in Franklin or Delaware County?
- Some programs allow DPA to cover certain closing costs, while others limit it to the down payment, so confirm the rules with your lender.
Are USDA loans available for homes near Westerville?
- Parts of Delaware County include USDA-eligible areas, while many parts of Franklin County inside Columbus are not eligible; your lender can verify a specific address.
Will taking DPA affect my monthly mortgage payment?
- If your DPA is deferred or forgivable at 0 percent, there is no monthly payment on the second; if it is a repayable second, you will have a monthly payment that increases your housing cost.
What documents should I prepare before I apply for OHFA programs?
- Gather IDs, Social Security numbers, two years of tax documents, recent pay stubs and bank statements, any required education certificate, and your purchase contract when you go under contract.
How long does an OHFA loan with DPA and an MCC typically take to close?
- Plan for about four to eight weeks from application to closing, depending on appraisal timing, condo reviews if applicable, and any program reservations.
Can I combine an OHFA mortgage, DPA, and an MCC on the same purchase?
- In many cases yes, but stacking rules vary by program and lender overlays, so confirm the combination with your lender at prequalification.
Do these programs work for condos in Westerville?
- Many programs allow condos, but condo documentation and approvals can add time, so start those reviews early in the process.
