INTEREST RATE REDUCED FOR FIRST TIME HOME BUYERS!

The Ohio Housing Finance Agency, a statewide agency that provides affordable housing to low-to-moderate income first time homebuyers, just announced an interest rate reduction for new homebuyers. http://www.ohiohome.org/homebuyer/first_time.aspx. Effective January 25th, the 30 year fixed rate mortgage for its First Time Homebuyer Programs are:

• 5.0% for loans without their 2.5% down payment assistance grant

• 5.5% for loans with the 2.5% assistance grants

• 4.75% for the Ohio Heroes program without 2.5% assistance grant

• 5.25 for Ohio Heroes with 2.5% assistance grant (firefighters, police officers, health care workers, and active duty military

• 5.05 for Grants for Grads 2.5% assistance grant

This is great news for first time home buyers who can be eligible for the $8,000 tax credit, as well as up to 2.5% of the purchase price to pay the down payment, closing costs or other prepaids. Since mortgage rates have crept up over the past several months, this OHFA rate reduction can lessen the impact of recent 30-year fixed rate increases.