First Time Homebuyers: Why it Makes Sense to Buy

Despite the downturn in the housing market, it may still make sense for you to buy a home, especially if you are a first-time homebuyer. Here’s one reason why.

In addition to the fact that rates are still historically low, the Ohio Housing Finance Agency (OHFA) offers a special program that helps first-time homebuyers to get a mortgage. This program makes buying a home more affordable for qualifying homebuyers by offering 30-year, fixed-rate mortgage loans at a competitive interest rate.

The current interest rates are 5.5% for loans without down payment assistance, 5.90% for loans with 2% down payment assistance, and 7.5% for a loan with a 4% second mortgage.

In other words, if you are looking to buy a home and meet the income qualifications of the program, then you could not only find a good deal on a house – you can also save thousands of dollars by getting a better interest rate.

The OHFA program is also available with a conventional, 0% down payment. First time buyers are defined as anyone not owning or occupying their principal residence within the last three years. Target areas include most of the city of Cleveland. The income limits for buyers within the target areas for a 1 or 2 person family are $72,240, and for a 3 or more person family, the limits are $84,280. The income limits in the nontarget areas for a 1 or 2 person family are $60,200, and for a 3 or more person family they are $69,230.

For more information about the OHFA program, visit their website at
www.ohiohome.org.