June is National Homeownership Month! It began as Homeownership Week in 1995 and was expanded to the entire month of June in 2002. Its purpose is to promote public policies that help future homeowners and create more opportunities for property ownership. We're currently experiencing a tough market for buyers due to record high home values and very low inventory, but one thing that can make the process easier is taking advantage of federal and state funded down payment assistance grants and buyer programs. 

federally backed loans

fha

FHA loans are insured by the Federal Housing Administration and issued by FHA-approved lenders. Compared to conventional loans, they have lower credit score and down payment requirements. Borrowers can get up to 96.5% of the value of the home and need a down payment of 3.5%. Down payments can come from the borrower's funds, a down payment assistance program, or gift funds from a family member. 

usda

USDA loans are insured by the US Department of Agriculture and issued by private lenders. They offer benefits to those looking to purchase property in eligible rural areas. USDA loans don't require a down payment and there's no set minimum credit score, but lenders may have their own credit requirements. The purchaser's adjusted annual income cannot exceed 115% of the area median income based on family size. 

va

Va loans are guaranteed by the Department of Veterans Affairs and provided by private lenders. These loans are available for service members, veterans, and eligible surviving spouses. They offer 0% down payments, no PMI or MIP, and typically have lower interest rates than conventional loans.

freddie mac home possible

This mortgage loan is available for those with an income of 80% or less of area median income. Borrowers can get a down payment as low as 3% and the program allows non-occupant co-borrowers. Home Possible also offers flexible down payment sources— down payments can come from the borrower's funds, family members, employer-assistance programs, and secondary financing. Learn more here.

fannie mae homeready mortgage

HomeReady Mortgage allows down payments as low as 3% and is available to borrowers with an income below 100% of the median area income. All borrowers do not have to live in the home and down payments can be provided by the purchaser, gift funds, or grants. Homeownership counseling is required for this loan product. Learn more here.

fannie mae 97% ltv standard

For those who aren't eligible for HomeReady, Fannie Mae's Standard 97% Loan-to-Value Mortgage offers 3% down payments with no income limits. At least one borrower must be a first-time homebuyer, defined as someone who has not had ownership interest in a residential property for at least three years. Learn more here.

ohio housing finance agency programs

You may qualify for an OHFA homebuyer program if you meet these requirements:

1. You meet income and purchase price limits (see here)
2. You meet credit score requirements— conventional, USDA, and VA must be higher than 640 while FHA requires 650 or higher
3. You meet debt to income ratios for the loan type

Qualified buyers must complete homebuyer education after submitting loan application.

your choice! down payment assistance

This program allows borrowers to recieve 2.5% or 5% of the home's purchase price. The funds can be used toward the down payment, closing costs, or other pre-closing expenses. The assistance is forgiven after seven years but if you sell or refinance within seven years, the assistance must be repaid. Learn more here.

grants for grads

Recent graduates can take advantage of lower interest rates with this program and 2.5% or 5% down payment assistance. The funds are forgiven after five years but if you sell prior to then, all or a prorated portion of the assistance must be repaid. To qualify, you can not have owned property within the last three years. Learn more here.

ohio heroes

Those who serve the public may be eligible for a discounted interest rate. Careers that qualify include veterans, service members, surviving military spouses, police officers, firefighters, volunteer firefighters, EMTs, paramedics, physicians, nurse practitioners, RNs, LPNs, STNAs, teachers, school administrators, and school counselors. Learn more here.

next home

This program is available for those who are not defined as first-time homebuyers and can be used with the 2.5% Your Choice! Down Payment Assistance. The home you are purchasing must be your primary residence and you must occupy the home within 60 days of closing. Learn more here.

mortgage tax credit

Unlike the other programs, the MTC Program does not require homebuyer education. Homebuyers with a tax liability can use this program to recieve a credit of up to $2,000 toward their federal taxes. The credit is a portion of paid mortgage interest. Learn more here.

OHFA programs can be combined. Check here for combination options and find OHFA-certified lenders here.

home at last

Home at Last is a down payment assistance program provided by the city of Toledo. Buyers cannot have had an ownership interest in a home for the last three years and income maximums are set at 80% of HUD area median income. Eligible buyers can recieve $7,500 toward the purchase of a home and up to $9,500 in target neighborhoods. Homeownership counseling is required and buyers must contribute $500 which includes payment for the required home inspection. A licensed lead risk assessor must perform a visual inspection and is provided by the City. Browse participating lenders and learn more here.

NeighborWorks Toledo Region and Northwest Ohio Homeownership Development Agency provide HUD-approved homeownership counseling and they are partnered with Home at Last. NOHDA also a down payment assistance program that provides an 8:1 match on up to $500 saved for down payment assistance. 

michigan state housing development authority programs

mi home loan mortgage

The MI DPA Loan allows up to $7,500 toward the buyer's down payment and is available statewide. The MI 10k DPA Loan is available for those purchasing a home within the 236 zip codes and eligible buyers can recieve up to $10,000 toward their down payment. Both products require homebuyer education.

mi home loan flex mortgage

For buyers looking for a more flexible mortgage program, this product offers up to $7,500 in down payment assistance statewide. The Home Loan Flex Mortgage is available for first-time and repeat homeowners and requires homebuyer education. 

mortgage credit certificate

Homebuyers can recieve a federal tax credit for up to 30 years after purchase.

Click here for more info on MSHDA programs and find a participating lender here.