Buying your first home in Hilliard can feel exciting and a little overwhelming, especially when you’re trying to figure out down payment options and timelines. You want a clear path that fits your budget and the local market. This guide walks you through Ohio Housing Finance Agency (OHFA) programs that can help, who qualifies, what documents you need, and how to coordinate the process in Hilliard from offer to closing. Let’s dive in.
What OHFA offers
OHFA partners with participating lenders to provide fixed‑rate mortgages and added support for eligible buyers. You apply through a participating lender, not directly with OHFA. Your lender will guide the application, enrollment, and closing steps.
Key program components include:
- Fixed‑rate mortgages offered by approved lenders, with conventional and some government‑insured options.
- Down payment assistance (DPA) that can help cover down payment and closing costs. This is often structured as a deferred second mortgage or grant‑style assistance, depending on the program year.
- Mortgage Credit Certificate (MCC) that provides a federal tax credit for a portion of your mortgage interest each year if you have federal income tax liability.
Program rules, income limits, and purchase price caps change periodically. Your lender can confirm the current rules and ensure your loan is set up correctly.
Who qualifies in Franklin County
Eligibility can vary by program year, but most first‑time buyer pathways follow common guidelines. Your lender will verify the details for Franklin County and your specific situation.
- First‑time buyer status: Generally, you have not owned a primary residence in the last three years. Some exceptions may apply, such as certain veteran or targeted area programs.
- Income limits: Household income must be at or below limits that vary by county and household size.
- Purchase price limits: OHFA sets maximum purchase prices by county and property type.
- Primary residence: The home must be owner‑occupied. Investment properties are not eligible.
- Credit and DTI: Minimum credit scores and debt‑to‑income ratios follow the loan type. Conventional loans use conventional standards, and FHA loans follow FHA guidelines.
- Mortgage insurance: If your down payment is low, mortgage insurance typically applies based on the loan type. DPA can come as a second lien.
Documents you’ll need
Gathering documents early helps prevent delays. Plan to provide:
- Government ID and Social Security numbers for all borrowers
- Recent pay stubs and W‑2s, or tax returns if self‑employed
- Bank statements for the last 2–3 months
- Gift letter and donor documentation if using gift funds
- Rental payment history, if requested
- Copy of your signed purchase contract
- Divorce, child support, or other court documents, if applicable
MCC in simple terms
A Mortgage Credit Certificate lets you claim a portion of your annual mortgage interest as a federal income tax credit if you owe federal income tax. This can reduce your yearly tax burden and improve affordability. You must opt in during loan origination, and the MCC needs to be issued before or at closing. You will use IRS Form 8396 each year you claim the credit. For personalized advice, consult a tax professional.
Using OHFA in Hilliard
Hilliard is a suburban market in northwest Franklin County with a mix of single‑family homes, townhomes, and condos. Prices and inventory can shift through the year, so it helps to keep an eye on recent sales and listings. Your lender will confirm Franklin County purchase price limits and income caps so you can focus your search on homes that align with OHFA rules.
If local median prices are near program limits, you may want to prioritize neighborhoods and property types that best fit your budget and the current caps. Your agent can set up alerts and schedule tours quickly so you can act when the right property appears.
Two common paths
- Scenario A: Entry‑level buyer with DPA. You qualify for a fixed‑rate mortgage and use OHFA down payment assistance to cover part or all of your required down payment and some closing costs.
- Scenario B: First‑time buyer maximizing MCC. Your income is within limits, and you combine a low‑down payment mortgage with an MCC to improve your tax position and qualifying capacity.
Timing to expect in Hilliard
- Pre‑approval: 1 to 7 days if your documents are organized.
- DPA and MCC enrollment: Usually begins after your contract is signed and during the loan application. Build in extra time for these steps.
- Underwriting and appraisal: Often 2 to 4 weeks, depending on lender workload and appraiser availability.
- Closing: Plan for about 30 to 45 days from offer to close. If DPA or MCC paperwork is delayed, allow 45 to 60 days.
Risk points that can slow things down include late DPA registration, missing MCC forms, condo document reviews, appraisal timing, and seller‑paid repair negotiations. Your agent and lender can help anticipate and manage these items.
Your step‑by‑step plan
Follow this simple roadmap to keep your purchase on track.
Step 0: Prepare and review credit
- Gather your ID, pay stubs, bank statements, W‑2s or tax returns, and any gift documentation.
- Review your credit report and resolve errors. Avoid large unexplained deposits.
Step 1: Pick a participating lender
- Confirm your lender participates with OHFA and offers both DPA and MCC if you plan to use them.
- Ask about current income and purchase price limits for Franklin County, plus minimum credit score and DTI requirements.
Step 2: Get a full pre‑approval
- Provide full documentation so your pre‑approval reflects the loan program and price range.
- Ask your lender to note OHFA participation and whether the pre‑approval assumes DPA or MCC.
Step 3: Write a contract with the right timelines
- Include language that allows time for OHFA enrollment and any DPA or MCC steps.
- Share lender and title contact info early so everyone can prepare program documents on time.
Step 4: Submit OHFA applications
- Complete lender and OHFA forms promptly. DPA and MCC are opt‑in, so confirm you want them.
- Track signatures and checklist items. Respond quickly to lender requests.
Step 5: Appraisal, underwriting, and title work
- Ensure the appraiser can access the home quickly. For condos, confirm association documents are ready for review.
- The title company will prepare the first mortgage and any DPA second lien for recording at closing.
Step 6: Close and file your MCC
- At closing, confirm DPA funds and any MCC certificate are finalized.
- Keep your MCC for tax filing and use IRS Form 8396 when you file. Check with a tax professional if you have questions.
Coordination tips for Hilliard
- Set a clear timeline. Ask your lender for the exact DPA and MCC submission deadlines and add them to your calendar.
- Have one point of contact. Confirm who at the lender and title company will manage OHFA paperwork.
- Communicate early. Keep your agent and the seller’s side updated on program steps that impact closing.
- Plan for appraisal gaps. If the appraisal comes in low, DPA cannot be used to bridge the shortfall. Have a backup plan.
Common pitfalls to avoid
- Waiting until late in the process to enroll in DPA or request an MCC.
- Choosing a lender that does not participate with OHFA or has limited experience with the programs.
- Overlooking condo approval requirements that add time.
- Misunderstanding the owner‑occupancy requirement or move‑in timelines.
Local resources to know
- OHFA program pages and participating lender lists for current rules and enrollment steps.
- Columbus area market reports and county sales records for pricing and inventory trends.
- Franklin County Auditor and Recorder for recorded liens and comparable sales.
- City of Hilliard pages for utilities, permits, and community services.
- HUD‑approved housing counselors for budgeting and pre‑purchase guidance.
- Local tax professionals for MCC questions and filing support.
Why work with a local team
You get the best results when your agent, lender, and title team coordinate early. In a fast‑moving Hilliard market, a clean pre‑approval, clear program timelines, and proactive communication can be the difference between a smooth 30 to 45 day closing and a stressful delay. A boutique, hands‑on team helps you move fast while staying organized.
Ready to map your OHFA strategy, compare program options, and tour Hilliard homes that fit your budget and the latest limits? Connect with Angelina Fox‑Smith & Company to schedule a free, no‑pressure planning session.
FAQs
Am I eligible if I owned a home more than three years ago in Ohio?
- If you have not owned a primary residence in the past three years, you may meet the first‑time buyer definition. Some exceptions may apply. A participating lender will confirm eligibility.
Can I use OHFA down payment assistance on a Hilliard condo?
- Often yes, as long as the condo meets lender and program requirements. Condo association documents can add time for approvals, so start early.
How does a Mortgage Credit Certificate help my budget?
- An MCC can reduce your federal income tax liability by letting you claim a portion of mortgage interest as a credit, if you owe federal income tax. Ask a tax professional how it applies to you.
Will down payment assistance raise my monthly payment?
- DPA is commonly a deferred second lien. Your main mortgage payment follows your first loan terms. Any second‑lien terms depend on the program structure for that year.
How long does an OHFA loan take to close in Hilliard?
- Many buyers close in about 30 to 45 days. If DPA or MCC paperwork is delayed, plan for up to 45 to 60 days. Clear timelines and fast document responses help.
Do OHFA programs work with conventional and FHA loans?
- Yes, OHFA programs are compatible with many loan types. Underwriting follows the standards of the loan product paired with the program.
