OHFA's Target Area Loan product helps revitalize federally-designated target areas by making our affordable first-time homebuyer loan products and competitive interest rates available to any qualifying buyer purchasing a home in these areas.
A target area is a Census tract where the housing market is highly challenged. There are two types of target areas: Qualified Census Tracts (QCTs), which are based on household income data and designated by the U.S. Department of Housing and Urban Development (HUD), and Areas of Chronic Economic Distress (ACEDs), which are designated by OHFA and subject to federal approval. A home must be located in at least one of these to be eligible for a target area loan. Most Ohio counties contain both target and non-target areas. Determine whether a property is located within a target area by using the tool at the bottom of this page.
Target area loan product applicants do not have to be first-time buyers. However, the following program requirements apply.
To qualify for an OHFA Target Area Loan product, you must meet the credit score requirements. Please note that credit score requirements may be higher for different loan types. Please check with your lender for specific requirements. The minimum credit score for borrowers using OHFA Homebuyer Programs are as follows:
Conventional, USDA, VA = 640
FHA = 660
For advice on improving your credit score please contact a HUD-approved counseling agency in Ohio.
* Please view a complete list of eligibility criteria.
Qualified buyers are required to complete free homebuyer education. OHFA's streamlined education program allows you to complete a course offered by any U.S. Department of Housing and Urban Development (HUD)-approved counseling agency in Ohio. Please note, OHFA homebuyer education is not completed until after homebuyer has submitted their loan application with their loan officer.
OHFA works with lenders, credit unions and mortgage companies across the state. Find an OHFA-approved lender in your area, along with tips to help you with the application process, or call us toll-free at 888.362.6432.