The Ohio Housing Finance Agency (OHFA) is offering help to Ohio college graduates who decide to buy their first home in the state within 18 months of receiving any type of college degree.
"The 'Grants for Grads' program was launched last Monday (Oct. 19), with the purpose of getting back Ohio's home grown talent," said Cindy Flaherty, OHFA director of home ownership.
Flaherty said the monetary benefits help graduates with down payment assistance and mortgages.
"Graduates will be eligible for down payment assistance for up to 2.5 percent," Flaherty said. "A second mortgage will be recorded, but 20 percent of it will be forgiven annually, and no payments or interests will be due."
According to Flaherty, graduates from any high school in Ohio who have recently received a college degree are eligible. They must live in the house for at least five years to receive the full benefit. If they move out of the state before that, they will be obliged to pay the remaining percentage of the grant.
Every county in the state has accepted the program and has participating lenders. Each county has different restrictions on income and price purchase though. A complete list of limits and lenders can be found at the OHFA Web site at http://www.ohiohome.org.
To qualify in the Butler County, graduates must have an income of less than $83,040 for a household of up to two people or less than $96,880 for three or more people. The purchase price limit for new and existing homes in the area is $294,903.
So far, Oxford's only participating lender is Somerville National Bank.
According to Flaherty, State Senator Stephen Buehrer suggested the program with the goal of reducing Ohio's "brain drain" factor, a phenomenon in which Ohio's recent college graduates leave the state.
"No one is saying that this is the only answer to the problem," Flaherty said, "but it is something that we can offer to encourage recent graduates to work and stay in Ohio."
Graduating in December, Miami University senior Susana Campos said she would consider applying.
"If I were to find a job in Ohio, I would consider applying for the program," Campos said. "I believe it would help me get started in the real world."
Since it is a new program there is no projection on the level of participation. Flaherty said the agency believes that the main interest will rise in spring 2010, during graduation and peak time for home sales.
Senior Tim Martin, who will graduate in May, said he believes 18 months is not enough time to secure a job and purchase a home.
"I believe the program might be beneficial but it should be done in conjunction with some sort of employment options," he said.
Flaherty said there are no limitations to the number of applicants.
"So far, we don't anticipate putting any limits on the program," Flaherty said. "Everyone who is eligible will be able to apply. Lenders have been trained and are ready to take applications."
The OHFA offers other grants like the Ohio Heroes Program, but Flaherty said this is by far the best arrangement.
