Chapter 175-7 Downpayment Assistance Program

As used in Rules 175-7-01 to 175-7-02 of the Administrative Code:

(A) “Agency” means Ohio Housing Finance Agency.

(B) “AMGI” means area median gross income, as determined annually by the United States department of housing and urban development.

(C) “DAG” means the OHFA downpayment assistance grant program.

(D) “FHA” means the federal housing administration.

(E) “First-time homebuyers program” means the agency’s first-time homebuyers program.

(F) “Liquid assets” means those assets that can be readily converted to cash within ten days and include such assets as checking and savings accounts, certificates of deposit, money market accounts, stocks, bonds, and profit sharing accounts which can be withdrawn without penalty.

(G) “Maximum sales price” means the maximum total sales price of the residential real property to be purchased, as published annually by the agency.

(H) “OHFA guidelines” means those guidelines which will be established annually by the agency to implement this program.

(I) “Single family mortgage loan program” means the agency’s first-time homebuyers program.

HISTORY: Eff 4-16-92 (Emer.); 6-26-92; 3-23-04

Rule promulgated under: RC 119.03

Rule authorized by: RC 175.02

Rule amplifies: RC 175.04, 175.05, 175.07

RC 119.032 Review Dates: 12/23/03, 3/23/09

(A)LENDER ELIGIBILITY.

(1) Lenders shall be a participating lender in the first-time homebuyer program; and

(2) Additional requirements may be prescribed by the agency.

(B)HOMEBUYER ELIGIBILITY.

(1) The homebuyer shall be a participant in the first-time homebuyers program; and

(2) The homebuyer shall use the forms and meet all other criteria prescribed by the agency; and

(3) Additional requirements may be prescribed by the agency.

(C)ELIGIBLE COSTS.

Eligible costs shall be paid at the time of purchase, and shall include any and all settlement expenses. Such costs may consist of: downpayment, application fees, document preparation fees, lender discount points, origination and lock-in fees, appraisal costs, fees for credit reports, fees for title reports, title binder, title policy, survey, property inspection, gas and termite inspection, legal costs, county transfer tax, recording fees, non-financeable mortgage insurance premiums that must be paid in cash at closing, escrows for future taxes and hazard insurance, payments owed at time of settlement for property taxes or hazard insurance coverage, and other costs deemed eligible by the agency.

(D)ELIGIBLE PROPERTIES.

Residential real property eligible for DAG assistance shall be owner occupied by one household with a maximum sales price prescribed by the Internal Revenue Service, and may include existing houses consisting of one unit, duplex, or other structures with up to 4 units; spec/nearly completed house consisting of one unit; modular/manufactured house consisting of one unit. The maximum amount of land to be financed is two acres, unless additional acreage is required by local health or safety code.

(E)ADDITIONAL REQUIREMENTS.

(1) Homebuyser with a loan-to value ratio greater than 95% may choose to receive up to two percent of the purchase price to be used to pay a portion of the eligible costs. First-time homebuyers program loans with such assistance will bear interest at rates per annum slightly higher than the rates for first-time homebuyers program loans that do not include such assistance.

(2) OHFA shall establish annual program guidelines setting forth standards and procedures for DAP loan processing.

HISTORY: Eff 6-26-92; 2-8-93; 3-23-04

Rule promulgated under: RC 119.03

Rule authorized by: RC 175.02

Rule amplifies: RC 175.04, 175.05, 175.07

RC 119.032 Review Dates: 12/30/03, 3/23/09

Rescinded eff 3-23-04