Buying in Marion but short on cash to close? You are not alone. Many local buyers use Ohio Housing Finance Agency (OHFA) down payment assistance to bridge the gap and get the keys sooner. In this guide, you will see how much help you can get, the current Marion income and price limits, how forgiveness works, and the simple steps to apply. Let’s dive in.
OHFA help at a glance
- For reservations on or after July 1, 2025, OHFA provides a forgivable second mortgage equal to 3% of the purchase price for conventional loans or 3.5% for FHA, VA, or USDA loans. OHFA’s 2025 update explains the new amounts.
- The assistance can be used for your down payment, closing costs, or other pre‑closing expenses. It is forgiven after seven years if you stay in the home for the full term. If you sell or refinance before that, you repay the assistance. See the details on OHFA’s Down Payment Assistance page.
Marion income and price limits
To qualify, your household income and the home’s price must fit OHFA’s county limits. For Marion (effective July 1, 2025):
- Non‑Target limits: $96,400 for 1–2 persons, $110,860 for 3 or more.
- Target area limits: $115,680 for 1–2 persons, $134,960 for 3 or more.
- Purchase price caps for single‑family homes (Marion is in “All Other Counties”): $544,233 in Non‑Target areas and $665,173 in Target areas.
Always confirm the current county values in the OHFA Income & Purchase Price Limits.
Target vs Non‑Target in Marion
Some addresses fall in OHFA Target areas, which allow higher income and price limits. To check an address, use OHFA’s Target Area Search map. If the home is in a Target census tract, the Target limits apply.
Who qualifies and what to expect
- You must meet Marion’s income and purchase price limits shown above. See the full table in OHFA’s limits document linked earlier.
- Minimum credit scores: 640 for conventional, USDA, or VA loans, and 650 for FHA, subject to lender approval. Find these requirements on OHFA’s DPA page.
- Debt‑to‑income rules follow the loan type and underwriting findings. OHFA lenders confirm this during pre‑approval. Learn more about the process on OHFA’s residential lending page.
- Homebuyer education is typically required and can be completed through HUD‑approved counseling providers, as noted on OHFA’s DPA page.
How to use OHFA in 5 steps
- Find an OHFA‑approved lender. Start with the guidance on OHFA’s residential lending page.
- Get pre‑approved. Your lender confirms eligibility, loan type, and the correct OHFA product.
- Complete homebuyer education. Your lender will direct you to a HUD‑approved course that satisfies OHFA’s requirement.
- Lender reserves your OHFA funds. The lender handles the reservation and program paperwork with OHFA.
- Close with assistance applied. The DPA is recorded as a subordinate lien and forgiven after seven years if you meet the terms.
Pros, tradeoffs, and timing
- Pros: You reduce your upfront cash to close, and the assistance is forgiven after seven years if you stay in the home. Review the program basics on OHFA’s DPA page.
- Tradeoffs: Using DPA often comes with a slightly higher first‑mortgage rate. Compare payments with and without DPA using the examples on OHFA’s rates page.
- Timing tip: If you plan to sell or refinance within seven years, consider how repayment of the assistance would affect you.
- Stackable options: Some buyers may combine DPA with other OHFA offerings such as Ohio Heroes, Grants for Grads, or a Mortgage Tax Credit when available. Explore options on OHFA’s homebuyer programs page.
Simple Marion examples
- Conventional example: On a $250,000 purchase, 3% assistance equals $7,500 toward down payment and closing costs.
- FHA example: On a $250,000 purchase, 3.5% assistance equals $8,750 toward upfront costs.
- Limits check: If your 3‑person household earns $112,000, you would be over the Non‑Target income limit but under the Target limit, which may still work if the property address is in a Target tract.
Get local guidance
If you want to lower your cash to close and stay within Marion’s limits, OHFA can be a smart path. We help you compare loan options, confirm Target status, and line up the steps with your timeline. Ready to run the numbers and see if you qualify? Connect with Josh Cooper for local, practical guidance.
FAQs
How much OHFA assistance can a Marion buyer receive in 2025?
- For reservations on or after July 1, 2025, you can receive 3% of the purchase price with a conventional loan or 3.5% with FHA, VA, or USDA.
What happens if I move or refinance before seven years?
- The assistance is forgiven after seven years, but if you sell or refinance before that, you must repay the remaining amount.
Will my mortgage rate change if I use OHFA DPA?
- Usually yes. OHFA rate sheets show higher rates when DPA is used, so compare quotes with and without assistance.
How do I know if a Marion address is in a Target area?
- Use OHFA’s Target Area map to check the address. Target tracts allow higher income and price limits.
Where do I start the OHFA process in Marion?
- Begin with an OHFA‑approved lender for pre‑approval, then complete homebuyer education and let the lender reserve your OHFA funds.
