COLUMBUS, OH – November 23, 2010 – (RealEstateRama) — The Ohio Housing Finance Agency (OHFA) today announced the launch of the New Home Sweet Home Program that allows homebuyers to obtain a conditional loan reservation to lock their mortgage interest rate during new-home construction. The New Home Sweet Home Program is an extended lock option for homebuyers who purchase a new home and want to use OHFA’s first-time homebuyer programs. By allowing for a conditional loan reservation, a lender can offer a rate lock for up to 180 days while a builder completes the construction of the home. The interest rate at the time of reservation will be set at .25% higher than OHFA’s standard rate which is currently 4.25% for unassisted loans and 4.75% for loans with down payment assistance.
“For the first time in the Agency’s history, OHFA is now offering homebuyers the security from fluctuating loan pricing in an unsteady market,” Doug Garver, Executive Director said. “The New Home Sweet Home Program builds upon the Agency’s success of the First-Time Homebuyer Program and we look forward to the opportunities this program will offer Ohio homebuilders.”
Government-insured 30-year fixed rate loans including traditional FHA, VA, and USDA-RD loans are eligible for this new program. Participating borrowers must be first-time homebuyers or purchasing a home in a federally designated targeted area and willing to complete homebuyer education. Additional incentives such as OHFA’s Grants for Grads or Homes for Heroes programs will be available for qualifying homeowners.
Certain income and purchase price limits do apply and all homes must be used as a primary residence. OHFA’s program is a continuous lending program which means rates are subject to change. Additional information is available on OHFA’s website at www.ohiohome.org.
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About the Ohio Housing Finance Agency
OHFA is a self-supporting quasi-public agency governed by an eleven-member board. The Agency uses federal and state resources to provide housing opportunities for families and individuals through programs designed to develop, preserve and sustain affordable housing throughout the State of Ohio. OHFA is also an active partner in the interagency team which coordinates the Save the Dream Ohio initiative designed to stop preventable foreclosures.
Email: aalston (at) ohiohome (dot) org