Skip to main content OHFA's Mortgage Tax Credit Program

The Ohio Housing Finance Agency's Mortgage Tax Credit provides homebuyers with a direct federal tax credit on a portion of mortgage interest paid, which could provide up to a $2,000 tax savings per year.

Homebuyers must have a tax liability in order to use this non-refundable credit. The mortgage tax credit is in addition to the IRS home mortgage interest deduction.

The size of the tax credit a homeowner receives is based on the location, property and type of mortgage:

Mortgage Tax Credit Plus

  • If you use the tax credit with a loan through OHFA's First-Time Homebuyer program, you receive a tax credit of 40 percent of the home mortgage interest. The maximum annual tax credit is $2,000. Homebuyers using the Mortgage Tax Credit Plus could have a slightly higher interest rate. Homebuyers are also able to couple the mortgage tax credit with 2.5% down payment assistance.

Mortgage Tax Credit Basic

  • If you use the tax credit with a different mortgage option from your lender, your tax credit percentage is 30 percent for the purchase of a bank owned property, 25 percent for a property located in a target area and 20 percent for all other properties.


Am I Eligible?

You may qualify for an OHFA homebuyer program if you meet the criteria listed below:

  • You have not owned or had an ownership interest in your primary residence in the last three years.
  • You meet debt to income ratios for your loan type.
  • You meet income and purchase price limits.
  • You meet credit score requirements.
    • Conventional, USDA and VA Loans: 640 or higher
    • FHA Loans: 650 or higher

*There are no credit score requirements for the Mortgage Tax Credit Basic Program.


Homebuyer Education

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. Homebuyer Education is not required for borrowers who are only registered for our MTC Basic program.


Free Homeowner Resources

Qualified buyers will be eligible to join Power of Home, a new program that provides free homeowner resources through the digital app, Keep by Framework®. New tools and resources will be available to help you manage, maintain and build equity in your home.

You can download Keep to guide your homebuying process:
– Track to-dos that come up during the home inspection
– Do your own inspection following a quick assessment guide

You'll also have the opportunity to test new features and participate in a research study with The Ohio State University when you complete the homebuyer education.


How Do I Apply?

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.


Already A MTC Holder?

Please view our Previous MTC Holder page for information regarding requirements to refinance/reissue a MTC.