• Austin Heether-Fisher

Homebuyer Assistance For Down-Payment and Closing Costs In Dayton, OH

The HomeOwnership Center of Greater Dayton is now offering qualified buyers assistance for down payments and closing costs worth up to 20 percent of a home’s purchase price.

Previously, the program offered assistance up to 10 percent of a home’s purchase price.

Homeownership is one of the best ways for people with low to moderate incomes to build wealth.

This program makes it possible for first-time homebuyers to invest in their own future rather than paying rent, which is often higher than a mortgage payment in our market

The funding comes from the city of Dayton’s HOME dollars, which is allocated from the U.S. Department of Housing and Urban Development.

The assistance is a deferred second mortgage that homeowners do not have to repay unless they sell their homes, transfer ownership or vacate the properties.

No interest is attached to the deferred second mortgage. But participants of the program must agree to live in the homes as their primary residence for at least five years.

Whenever the homeowner does sell - 5 years out, 20 years out - The second mortgage must be paid back with funds from the sale, but with no interest attached.

Reducing or eliminating the private mortgage insurance costs which would be paid on a mortgage with a down payment of less than 20%, can save homebuyers thousands of dollars over the life of mortgage.

The Dayton program, which was launched in November 2014, is open to homebuyers from anywhere, but they must purchase homes in the city of Dayton. Kettering and Montgomery County have their own separate programs.

Upfront costs for buying a home can run from $5,000 to $9,000, which is a big challenge for potential homebuyers.

Down payments and closing costs is a lot of money for buyers to pay up front. Especially buyers paying off debt like student loans. This program can allow homebuyers to put more money down, which can reduce interest rates.

As real estate often is an appreciating asset that can lead to profits later and useful tax deductions right away.

For existing homes, the sales price cannot exceed $105,000. For newly constructed homes, the price cannot exceed more than $195,000. The real estate market has reset after the bubble and interest rates remain at historically low levels, which makes it a great time to buy.

To qualify for the program, applicants cannot earn more than 80 percent of the area median income, which is $33,500 for a single-person household and $47,600 for a family of four.

Other income-to-debt requirements also must be met.

The programs in Dayton, Kettering and Montgomery County have provided first-time homebuyers in the region more than $700,000 in down payment assistance, according to the center. All of the center’s programs, not just these, have helped facilitate more than $100 million in home sales.

These programs are also a great way for buyers to save money that can be invested into the properties for repairs or other immediate needs.


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