Ohio’s down payment assistance landscape runs through the Ohio Housing Finance Agency, which offers forgivable second mortgages, discounted interest rates for qualifying professions, and a recent-graduate program that forgives in just five years. Add Columbus-specific grants through the American Dream Downpayment Initiative and Franklin County programs, and first-time buyers in the Columbus metro have a stack of options that can dramatically reduce the cash needed at closing. Here’s every program worth knowing about in 2026.
OHFA State Programs
The Ohio Housing Finance Agency administers down payment assistance through its MyOhioHome.org portal. All programs pair with 30-year fixed-rate mortgages and require working with an OHFA-approved lender.
OHFA Down Payment Assistance
The core OHFA program provides down payment assistance as a forgivable second mortgage with a seven-year forgiveness period. As of July 1, 2025, assistance amounts are 3% of the purchase price for conventional loans and 3.5% for government loans (FHA, VA, USDA). The loan carries no interest, requires no monthly payments, and forgives entirely after seven years — provided you don’t sell or refinance the home during that period. Selling or refinancing before the seven-year mark triggers full repayment.
Credit score requirements are 640 minimum for conventional, USDA, and VA loans, and 650 minimum for FHA loans. Income and purchase price limits vary by county and are available on myohiohome.org. First-time buyer status requires no ownership interest in a primary residence during the past three years, though exceptions exist for buyers in targeted Census tracts and qualified veterans.
Ohio Heroes Program
Ohio Heroes provides a 0.25% mortgage interest rate discount plus down payment assistance of 2.5% or 5% as a forgivable loan — on top of the standard OHFA assistance. The program covers a broad range of professions: Pre-K through 12th grade teachers, administrators, and counselors; veterans and active-duty military; reserve components and surviving spouses; police officers and firefighters (including volunteers); EMTs and paramedics; physicians and nurse practitioners; registered nurses, licensed practical nurses, and state-tested nursing assistants.
The rate discount alone saves thousands over the life of a 30-year mortgage, and the additional DPA can be combined with the standard OHFA program, Grants for Grads, and the Mortgage Tax Credit. For qualifying professionals buying in the Columbus market, Ohio Heroes represents one of the most generous state-level assistance packages in the Midwest.
Grants for Grads
Recent graduates who earned an associate’s, bachelor’s, master’s, doctorate, or post-graduate degree within the past 18 months can access 3% (conventional) or 3.5% (government loans) in down payment assistance through Grants for Grads. The assistance forgives after five years — two years faster than the standard OHFA program — and includes a discounted mortgage interest rate.
For Columbus specifically, with Ohio State University, Capital University, Columbus State Community College, and Otterbein University producing thousands of graduates annually, this program addresses a common challenge: recent graduates with stable income and student loan debt who need help clearing the down payment hurdle. The five-year forgiveness window is aggressive and rewards graduates who commit to staying in Ohio.
Communities First Ohio
Communities First Ohio provides a pure grant — not a loan — of 3%, 4%, or 5% of the home purchase price for down payment and closing costs. Unlike the forgivable loan programs, there is no repayment obligation regardless of how long you stay in the home. Eligibility requirements align with standard OHFA criteria, and the program represents the simplest form of assistance available at the state level.
Federal Loan Programs in Ohio
FHA Loans
FHA loans require a minimum 3.5% down payment with a credit score of 580 or above (650 through OHFA programs). Mortgage insurance premiums apply — 1.75% upfront plus annual premiums — but the low entry point pairs naturally with Ohio’s 3.5% DPA for government loans, effectively covering the entire down payment through assistance.
VA Loans
Veterans and active-duty military can access zero-down VA loans with no mortgage insurance. Combined with Ohio Heroes’ rate discount and additional DPA, eligible buyers can potentially close on a home with minimal out-of-pocket costs.
USDA Loans
USDA loans provide 100% financing in designated rural and suburban areas. Significant portions of the Columbus metro’s outer ring — including areas of Delaware, Licking, Fairfield, and Pickaway counties — qualify for USDA eligibility, making this a viable option for buyers willing to look beyond the I-270 outerbelt.
Columbus and Franklin County Programs
City of Columbus American Dream Downpayment Initiative (ADDI)
The Columbus ADDI program provides up to 6% of the purchase price (maximum $5,000) as a five-year deferred forgivable loan for households at or below 80% of the Area Median Income. The loan forgives entirely if you remain in the home for five years, and no monthly payments are required during the forgiveness period.
Income limits for 80% AMI eligibility in Columbus start at $43,700 for a single person and scale up to $82,400 for an eight-person household. Applicants must have lived in Ohio for at least six months, must not have owned a home in the past 36 months, and must contribute at least $500 from personal funds. Debt-to-income ratios cap at 35% for housing costs and 45% for total debt. HUD-approved homebuyer education counseling is required.
Franklin County First-Time Homebuyer Program
Franklin County residents outside Columbus city limits can access the county’s first-time homebuyer down payment assistance program, which provides financial assistance with down payments and closing costs for income-qualified buyers. The program operates through the county’s Community Development office.
Homeport/Affordable Housing Alliance
Homeport, a Columbus-based nonprofit, offers grants of up to $25,000 for first-time homebuyers in Franklin County. The organization provides comprehensive homebuyer services including financial coaching, homebuyer education, and ongoing support alongside the financial assistance.
Mortgage Tax Credit
Ohio’s Mortgage Tax Credit provides a dollar-for-dollar federal tax credit on mortgage interest paid, reducing your annual tax burden for the life of the loan. The credit can be combined with OHFA down payment assistance programs, creating a dual benefit: assistance at closing and ongoing tax savings every year afterward. First-time homebuyers who meet OHFA eligibility requirements can apply through their approved lender.
How to Apply
All OHFA programs require working with an approved lender from the MyOhioHome.org network. The application process starts with the lender, who will assess your eligibility across multiple programs and recommend the best combination based on your income, credit score, profession, and purchase price. HUD-approved homebuyer education counseling is required for most programs and is available free of charge.
OHFA can be reached at 888-362-6432, and the complete lender directory is available at myohiohome.org. For Columbus-specific programs, the city’s Housing Division and Homeport both provide application guidance and counseling.
Stacking Programs for Maximum Benefit
Ohio allows combining multiple assistance sources, and the most effective strategy for Columbus buyers is stacking. A recent Ohio State graduate who is also a teacher could potentially combine Grants for Grads DPA (3.5%), Ohio Heroes rate discount (0.25%), and the Mortgage Tax Credit — layering state-level benefits that reduce both the upfront cost and the ongoing monthly burden. Adding Columbus ADDI assistance on top creates a package that can make homeownership accessible at income levels that would otherwise be priced out of the Franklin County market.
The key is working with a lender who understands the full menu of available programs. Not all approved lenders are equally experienced with program stacking, so asking specifically about combining OHFA, local, and federal assistance during your initial conversation is worth the effort.
For more on the Columbus housing market, explore our housing market update and how much house you can afford in Columbus guide.