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Graduates can receive housing funds through new program

Calling all college graduates: are you looking to buy a home?

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By Jessica Heffner, Staff Writer Updated 7:39 PM Monday, October 19, 2009

COLUMBUS — Ohio college graduates now have a new option for getting financial assistance to purchase a home.

The Ohio Housing Finance Agency has launched the Grants for Grads program, which gives borrowers 2.5 percent of the home’s purchase price within 18 months of graduating from college. Grads must stay in the house for at least five years, or else the funds must be repaid, according to Erin Biehl, spokeswoman for the OHFA.

To qualify, residents must have graduated from an Ohio high school and apply for the program within 18 months of earning an associate, bachelor’s, master’s, doctoral or other post-graduate degree. The funds will be awarded as a second mortgage loan with a zero percent interest rate that is forgivable after five years. Grads can attend almost any school in the country to qualify, but the buyer’s mortgage must go through a program-affiliated lender, Biehl said.

There are income and purchase restrictions. Butler and Warren County residents must have an income of $83,040 or less for a household of up to two people, or $96,880 or less for three people or more. Also, the home’s purchase price cannot exceed $360,437.

Only home purchases made beginning Oct. 19 and onward will qualify. An end date has not yet been established, but the program was part of the two-year state budget passed in July. Biehl said about $1 million has been set aside for the program so far.

The OHFA is unsure how many participants Grants for Grads may garner, though the expiration of the $8,000 federal tax credit for first-time buyers on Nov. 30 could boost participation, Biehl said.

“We are not sure what the interest level is going to be yet,” she said. “It could be very little or it could be a lot.”

Middletown resident Terrance Ostbye, 22, said his procrastination may actually pay off thanks to this program.

“I waited until the last minute to jump in the housing market, but now I can get more money thanks to this,” the recent graduate of Sinclair Community College in Dayton said. “Good news now would be the feds extending their tax credit, too.”

The program was established as an effort to reduce the number of students leaving the state upon earning their degrees.

Grants for Grads

To qualify, residents must have:

• Graduated from an Ohio high school;

• Apply within 18 months of earning an associate, bachelor’s, master’s or doctoral degree;

• Live in the home for at least 5 years;

• Have an income of $83,040 or less for a household of up to two people, or $96,880 or less for three people or more;

• Purchase a home priced at $360,437 or less.

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Once again the majority of the tax burden falls upon the shoulders of the middle class who will garner little or no benefit from the program. It doesn't accomplish anything to whine or b@*#h about it for the words fall upon the deaf ears of our elected government. YOU have to make it known to government that YOU are not satisfied and that YOU will take action by electing someone who will listen and act upon the wishes of the majority.

RP McMurphy
11:25 AM, 10/20/2009

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My wife lost her job in July; I called my mortgage lender to try to redo my mortgage under the "making homes affordable" plan that Obama put in. I was turned down because I make too much money. I make $48K a year. I have a mortgage and two car payments. When is all these credits and bailouts goona help the people that has kept this economy afloat the last few years? Where is my help when I need it? If I just quit my job, maybe Obama will start supporting me? NOT!

JLBX3
9:17 AM, 10/20/2009

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who makes $80,000 18 months after graduating? What about the people who have WORKED for 18 yrs and are only making $50,000????????????????

?
6:15 AM, 10/20/2009

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Why should anyone get something just for being a college graduate! There are lots of people who cannot afford college and they then get a job and but a house like normal and then there are the college grads that got screwed who are paying back their loans and then all the other bills. what a joke this is. Keep pampering this generation.

triedofthatcrap
1:27 PM, 10/19/2009

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This is so unfair. I graduated in '99, purchased my own home and have to pay for the next generation to buy their home. Do I get a 2.5% tax break ?

Mark
1:08 PM, 10/19/2009

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