Then you will want to take advantage of the new Ohio program that offers down payment assistance!  The Ohio Housing finance Agency has launched a new Homebuyer Tax Credit Advantage Program.  Low-to-moderate income Ohioans will be able to receive a loan for up to 3% of the purchase price of their home.  After purchasing, you can then apply for the Federal tax credit in either the 2008 or 2009 year.

This second loan on the property will be a 15-year loan from OHFA that defers mortgage principal payments and carries an interest rate 1% higher than OHFA 's current interest rate until July 1, 2010.  That way you could use your Federal tax credit money to prepay the loan immediately or use it towards other household costs.  Because of changes to the FHA program most commonly used, you can also use some of that money in tax credit to cover closing costs.  At all times with these loans, you still must bring at least .5% of your own money to the closing.

As a requirement of the program, you will be expected to complete a Homebuyer education course prior to closing the loan. For more information, contact them at  www.ohiohome.org.

You might also check out their programs for Ohio Heroes and for Target Area Loans.