Buying your first home in Gahanna can feel out of reach when the down payment looms large. You are not alone. Many Gahanna buyers find the upfront cash tougher than the monthly payment. The good news is that real, local help exists, and you can stack programs to make your purchase more affordable.
In this guide, you will learn the main types of down payment assistance, where Gahanna buyers should look, who typically qualifies, and a step-by-step plan to apply. You will also get practical tips to avoid delays and surprises. Let’s dive in.
Types of assistance available
Grants
Grants provide one-time funds for your down payment or closing costs. You usually do not repay them. Most grant programs set income and purchase price limits and often require a homebuyer education course. Funding can be limited, so timing matters.
Forgivable loans
These are second mortgages that forgive after you live in the home for a set period, often 3 to 10 years. If you sell or refinance before the term ends, you may need to repay some or all of the assistance. Forgiveness schedules vary by program.
Deferred or low-interest seconds
Some programs offer a subordinate loan with no or low interest. Payments may be deferred until you sell, transfer, or refinance. These can help you buy sooner, but you will have a lien on the property.
Matched savings and MCCs
Matched savings programs add funds when you save toward your purchase and complete required milestones. A Mortgage Credit Certificate (MCC) is a federal income tax credit based on a portion of your annual mortgage interest. While an MCC does not give you cash at closing, it can improve long-term affordability.
Low down payment mortgages
Even if you do not use DPA, loan options like FHA (3.5% down), Fannie Mae HomeReady and Freddie Mac Home Possible (3% down), and VA or USDA for eligible borrowers can cut upfront cash needs. Many buyers also combine these with DPA, if allowed.
Where Gahanna buyers should look
Ohio Housing Finance Agency (OHFA)
OHFA is the statewide housing finance agency that partners with participating lenders. It offers mortgage products and often pairs them with down payment assistance for eligible buyers. Ask lenders if they originate OHFA loans and which DPA options you can use.
Franklin County programs
Franklin County’s development offices may use federal or local housing funds for down payment assistance. Coverage and requirements can change, so check for current income limits, property criteria, and application windows.
City of Gahanna and regional options
Some smaller cities run targeted programs for specific neighborhoods or buyers. Because Gahanna is part of the Columbus metro, certain regional or joint Columbus–Franklin County programs may apply to Gahanna purchases. Confirm local eligibility before you shop.
HUD-approved counseling and nonprofits
HUD-approved housing counseling agencies help you understand options, complete required education, and prepare your application. Local nonprofits and community development groups sometimes run DPA or matched savings programs for income-qualified buyers.
Lenders and employers
Local lenders may layer DPA with first mortgages. Some employers offer homebuyer assistance to staff. Ask about grants, forgivable seconds, and how they work with your chosen loan.
Who typically qualifies
- Income limits. Most programs set household income caps based on area median income and household size.
- Purchase price caps. Many programs limit the maximum purchase price.
- First-time buyer status. Often defined as no ownership in the last three years. Some programs waive this for veterans, essential workers, or buyers in targeted areas.
- Homebuyer education. A HUD-approved course, and sometimes one-on-one counseling, is often required.
- Eligible properties and occupancy. Owner-occupied single-family homes and condos commonly qualify. Investment properties do not. You may need to live in the home for a set period.
- Loan type rules. Some DPA works only with specific first mortgages like OHFA, FHA, or certain conventional loans.
- Resale and recapture. Forgivable or deferred loans may require repayment if you sell or refinance before the term ends.
How to apply: step-by-step
1) Get pre-qualified with the right lender
Choose a lender experienced with OHFA and Franklin County DPA. Pre-qualification will clarify your price range and which programs fit your income, credit, and loan type.
2) Complete homebuyer education early
Enroll in a HUD-approved course and keep your certificate. Taking this step early speeds up underwriting and can unlock more options.
3) Submit your DPA application
Applications may go through your lender, the county or city, or a nonprofit. Funding can be first-come, first-served. Apply as soon as you have a target property and your documents in order.
4) Underwriting and property approval
Your primary mortgage goes through standard underwriting. The DPA is added as a grant or second mortgage at closing. Make sure your lender and the DPA administrator coordinate timelines.
5) Close and know your terms
At closing, sign any occupancy agreements and review forgiveness or repayment terms. Keep copies of your notes and disclosures for future reference.
Documents you will likely need
- Government-issued ID and Social Security numbers
- Recent pay stubs, W-2s, and tax returns (usually two years)
- Bank statements and proof of assets
- Employment verification or offer letter
- Purchase contract and property details
- Homebuyer education certificate
- Any program-specific forms, like household composition or asset worksheets
Timelines and what to expect
Adding DPA can extend your timeline because extra approvals are needed. Plan for several additional weeks when you write your purchase contract. If a program has a waiting list or funding round, ask your lender to adjust your closing plan.
How DPA affects your loan and budget
Program compatibility
Not every DPA pairs with every loan. Confirm compatibility with your lender before you sign a contract.
Monthly budget and debt-to-income
Grants do not add monthly payments, which helps your ratios. A second mortgage with payments may impact your debt-to-income. A deferred second may not count in monthly obligations depending on underwriting.
Rates and fees
DPA itself can be interest-free or low interest, but your first mortgage rate and fees can vary by program. Ask your lender for an all-in comparison so you can weigh cash saved up front against long-term costs.
Taxes and credits
Grants for down payment or closing costs are often not taxable income. Mortgage Credit Certificates create a federal income tax credit rather than cash at closing. Because tax situations vary, consult a tax professional for details.
Smart ways to use assistance
- Combine options when allowed. You may be able to pair OHFA DPA with a lender grant or an MCC. Always verify rules with both the lender and the program administrator.
- Front-load your education. Completing the HUD-approved course early removes a common bottleneck.
- Get written comparisons. Ask for a side-by-side of rate, payment, mortgage insurance, fees, and DPA terms.
- Plan for occupancy. If your assistance is forgivable, know your time-in-home requirement before you commit.
- Keep refinance flexibility in mind. If you expect to refinance soon, choose programs that will not trigger full repayment.
Pitfalls to avoid
- Waiting too long to apply. Funds can run out or waitlists can form quickly.
- Skimming the fine print. Know your lien position, forgiveness schedule, and recapture rules.
- Assuming all programs work together. Some combinations are not allowed. Confirm before you write an offer.
- Paying upfront fees to unknown sources. Use HUD-approved counselors, reputable nonprofits, or local government programs.
Gahanna-specific tips
- Start with OHFA and Franklin County. Gahanna buyers often qualify for both statewide and county-level options. Ask lenders which programs are open now.
- Check the City of Gahanna. Smaller, targeted incentives sometimes exist for specific neighborhoods or revitalization areas.
- Consider regional programs. Given Gahanna’s position in the Columbus metro, some joint Columbus–Franklin County efforts may extend to nearby suburbs.
- Match your home search to program rules. If a program limits price or property type, focus on listings that fit to avoid surprises during underwriting.
Your next move
If you are ready to buy in Gahanna but want a plan for the upfront costs, partner with a team that knows the programs and the micro-markets. From pre-approval to closing, we will help you compare DPA options, align them with your loan, and shop homes that fit the rules and your lifestyle.
Start a conversation with the neighborhood-focused team at Core Realty Collection. We will walk you through your options and build a clear path to keys in hand.
FAQs
Can Gahanna buyers combine multiple assistance programs?
- Often yes, but it depends on each program’s rules and your loan. Confirm compatibility with your lender and the program administrator before you apply.
Do I have to be a first-time buyer to get DPA in Gahanna?
- Many programs require first-time buyer status, defined as no ownership in the past three years. Some waive this for veterans, essential workers, or targeted areas.
Will using down payment assistance delay my closing?
- It can. Extra approvals and paperwork may add several weeks. Complete homebuyer education early and apply as soon as you go under contract.
Are down payment grants taxable income for federal taxes?
- In most cases, grants used for down payment or closing costs are not treated as taxable income. Always verify your situation with a tax professional.
Can I refinance if I used a forgivable or deferred second mortgage?
- You can, but refinancing may trigger repayment or affect forgiveness. Review your note and lien terms before you refinance.
Which agencies should Gahanna buyers contact first?
- Start with an OHFA-participating lender, a HUD-approved housing counselor, Franklin County development offices, and the City of Gahanna for any local or regional programs currently open.
