Are you looking to buy your first home in Akron Ohio? Have you been saving up money but don’t know how to start the applicant process? There are plenty of benefits that come with first time home buyer programs in Akron Ohio. This guide will help you secure eligibility by showcasing all of your options as a first time buyer.
Buying a home is part of the American dream for many people, but it’s also one of the most expensive purchases you’ll probably ever make. So, you want to be sure you’re making the right decision for you when you sign on the dotted line.
As an Akron Ohio first time homebuyer, you may be able to get help from payment assistance programs in Akron that can relieve some of your stress and assist you with your financial burden. You might even qualify for one or more of these programs if you’ve owned a home previously.
If you haven’t had an ownership interest in your primary residence in the last three years, you qualify for first-time homebuyer assistance. You will have access to Akron mortgage companies, lenders, and credit unions that offer first-time home buyers excellent home-buying options.
There’s so much to love about living in Akron. From the beautiful Akron neighborhoods to the distinct weather patterns in Akron, you’ll love buying a home in this family-friendly city.
The City of Akron partners with the Ohio Housing Finance Agency (OHFA) to offer assistance for Akron residents, such as lower mortgage rates, down payment assistance, tax credits, and combined financing for buying and renovating a home for the economic development of the state. The Summit County First Home, First Loan program also provides down payment assistance to eligible first-time homebuyers, including those in Akron.
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First-Time Home Buyer Tax Credits & Down Payment Assistance in Ohio
As a first-time homebuyer, the biggest hurdle you’ll likely face in the home buying process is your down payment and closing costs. These costs are required upfront and can be substantial. The City of Akron and the Ohio Housing Finance Agency offer several assistance programs to help you get over that hurdle by working with lenders, credit unions, and mortgage companies across the state to offer loans to qualified borrowers in the home program.
OHFA offers a variety of affordable loan options, including FHA, VA, USDA, and 30-year fixed-rate conventional loans with generous median income and purchase price limits. These loans are specifically designed for low- and moderate-income homebuyers.
Your Choice! Down Payment Assistance
Your Choice! Down Payment Assistance is an OHFA program that allows you to choose assistance with either 2.5% or 5% of your home’s purchase price. You can apply the down payment assistance towards down payments, closing costs, or any other pre-closing expenses, providing you with support during the buying process. After 7 years, the assistance is forgiven. You don’t have to pay it back, unless you sell your home within the 7-year period. Then you are responsible for repaying all of the assistance provided.
Ohio Heroes
This program offers discounted mortgage interest rates to Akron residents who serve the public. If you are a veteran, active duty military member, member of reserve components (including surviving spouses), police officer, firefighter, volunteer firefighter, EMT, paramedic, physician, nurse practitioner, nurse, pre-K through grade 12 teacher, or an administrator or counselor, you qualify for the Your Choice! down payment assistance as part of your Ohio Heroes loan.
Grants For Grads
If you are a recent graduate in Akron, you may be eligible for the OHFA’s Grants for Grads, which provides a discounted mortgage interest rate as an additional incentive for you to make Akron your home. If you graduated within the last 48 months with an associate’s, bachelor’s, master’s, doctorate, or other post-graduate degree from an accredited college or university, you may qualify for 2.5% or 5% down payment assistance, which is forgiven after 5 years as long as you remain in the state of Ohio.
If you sell your home and move out of Ohio within 5 years, you are required to repay some or all of the assistance provided.
Here are some of the requirements to qualify for these OHFA first-time homebuyer programs:
- You haven’t owned or had an ownership interest in your primary residence in the last three years.
- You meet income and purchase price limits.
- You meet credit score requirements (640 or higher for conventional, USDA, and VA Loans; 650 or higher for FHA Loans).
- You meet debt to income ratios for your loan type.
- You are required to complete OHFA’s free homebuyer education program offered by any U.S. Department of Housing and Urban Development (HUD)-approved counseling agency in Ohio.
Mortgage Tax Credit
The OHFA’s Mortgage Tax Credit provides Akron homebuyers with a direct federal tax credit on a portion of mortgage interest paid, up to a $2,000 tax savings per year. You must have a tax liability to use this non-refundable credit. The mortgage tax credit is offered in addition to the IRS home mortgage interest deduction.
The size of your tax credit will depend on your location, property, and the type of mortgage you have. If you use the tax credit with a loan through OHFA’s first-time homebuyer program, you can receive a tax credit of 40% of the home mortgage interest up to $2,000.
If you use the tax credit with a loan provided by your lender not coupled with OHFA’s first-time homebuyer program, you can receive a tax credit of 20% if the property is in a non-target area. You’ll receive 25% if in a target area, 30% if a bank or government entity currently owns the property, and 15% for all other properties. If you couple your mortgage tax credit with a loan through OHFA’s first-time homebuyer program, you can also receive down payment assistance equal to 2.5%.
First-Time Home Buyer Loans in Akron
As a first-time home buyer in Akron, a number of loan options are available for you to choose from. You can obtain these loans through various lenders and organizations, which may or may not be partners of OHFA. Here are the most common types of loans you can get in Akron.
Conventional Loans
A conventional loan is the most common loan type, and they are available for first-time homebuyers. If you have good credit, a conventional loan is a suitable option because it typically offers lower interest rates for borrowers with excellent credit. Conventional loans adhere to guidelines set by Fannie Mae and Freddie Mac, the two agencies responsible for regulating the mortgage industry.
The main difference between a conventional loan and others is that conventional loans are backed by private lenders instead of a government agency. With a conventional loan, there may be additional costs, such as private mortgage insurance if your down payment is less than 20% of the purchase price, to protect the lender in the event of missed loan payments.
FHA Loans
Federal Housing Administration, or FHA loans, are issued by an approved lender but insured by the government. With an FHA loan, you’ll typically have a lower down payment and can qualify with a lower credit score.
FHA loans are often popular with first time home buyers because they offer flexible down payment options. FHA loans often come with either an Upfront Mortgage Insurance Premium (UFMIP) or an Annual MIP (paid monthly). Aside from the traditional first-time buyer loans, other FHA loan types are also available.
VA Loans
A Veterans Affairs loan, or VA loan, is available to past or present members of the military and select military spouses. They are similar to FHA loans in that they are issued by an approved lender and backed by the Department of Veterans Affairs. Many VA loans require no down payment. VA loans help military members who don’t have great credit or large down payments become homeowners.
It’s important to note that government loan programs such as FHA and VA home loans are for primary residences only. You can’t use these loans for a vacation home or investment property.
First-Time Home Buyer Programs in Akron
As a first-time homebuyer, you can find local assistance programs to help you buy your first home. Here are some of the first-time homebuyer programs available to you in Akron.
First Home First Loan Down Payment Assistance Program
The County of Summit Down Payment Assistance (DPA) Program assists eligible, low-moderate-income first time homebuyers that reside within Summit County, OH. The program provides a 3:1 match, up to $12,000, as a 0% interest rate deferred loan, that is due upon sale or transfer of the home or if you no longer use the home as your primary residence.
While this program is not typically available to county residents purchasing a home in Akron, Cuyahoga Falls, or Barberton, it is a great resource if you are a first-time homebuyer purchasing a home anywhere else in the Akron Metro area. To qualify for this program, the maximum purchase price of your first home cannot exceed $163,000.
Single-family homes, condos, and townhomes are eligible for the program. Trailers and duplexes are not eligible for the program. The DPA program funds are provided through the U.S. Department of Housing and Urban Development (HUD) and are available on a first come first served basis.
HOME Investment Partnerships Program (HOME)
The HOME Investment Partnerships Program (HOME) is not exclusive to first-time homebuyers, but it provides grants to Akron and Summit County for a number of activities, including building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income people. This program is designed exclusively to create affordable housing for low-income households.
Akron First-Time Home Buyer FAQs
Are First-Time Home Buyer Programs Worth It?
Yes. First-time buyer assistance programs allow you to buy a home when you otherwise wouldn’t be able to, often providing education on the process .
What Is a First-Time Homebuyer’s Program?
First-time homebuyer programs help first-time home buyers with down payment and closing cost assistance, two of the major hurdles to buying a home, as well as offering tax credits, so they can purchase a home.
Who Is Considered a First-Time Home Buyer in Akron?
Anyone who has never owned a home before or hasn’t owned a home in the past three years is considered a first-time homebuyer in Akron.
Moving to Akron? Summit Moving Can Help!
Buying your first home in Akron is an exciting milestone, and with the right support and resources, it doesn’t have to be overwhelming. Whether you’re applying for down payment assistance, exploring loan options, or just starting your search, there are plenty of programs designed to help.
When you’re ready to make the move, trust the experienced team at Summit Moving to get you settled into your new Akron home with care and efficiency. Contact us today at 330-633-3633 for a free quote, and let our Akron movers help make your first home truly feel like home.
