The Ohio Housing Finance Agency's (OHFA) Mortgage Tax Credit provides homebuyers with a direct federal tax credit on a portion of the mortgage interest, lowering the tax liability by up to 40%. The tax credit cannot be larger than the owner's annual federal income tax liability, after deductions, exemptions and other credits.
Homebuyers must have a tax liability in order to use this non-refundable credit.
The size of the tax credit a homeowner receives is based on the location, property and type of mortgage:
Homebuyers coupling a mortgage tax credit with a loan through OHFA's First-Time Homebuyer program can also receive down payment assistance equal to 2.5% or 5% of the home's purchase price.
You may qualify for an OHFA First-Time Homebuyer loan if:
* Please view a complete list of eligibility criteria.
An OHFA First-Time Homebuyer loan may be combined with the Mortgage Tax Credit.
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.