Neighborhood Housing Services of Hamilton, Inc.

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Grants-Down Payment/Closing Cost Assistance

In an effort to increase affordable housing opportunities in the cities of Hamilton and Middletown, Neighborhood Housing Services of Hamilton, Inc. has partnered with both the City of Hamilton, Butler County, and the City of Middletown to provide a “forgivable” loan for down payment or closing cost assistance to qualified homebuyers. FUNDS ARE PROVIDED ON A FIRST COME, FIRST SERVE BASIS.

What is a Forgivable Loan and How Does it Work?  

A “forgivable loan” is a loan that does not have to be paid back once all of the terms and guidelines have been met.  The forgivable loan would be forgiven over a period of five years. This means that if you live in the property for five years the “loan” would not have to be paid back. However, if you sell the home before the five year period is completed, a pro-rated portion of the loan would have to be paid back at the time of the sale or transfer. 

Looking For Your First Home?

For more information, contact NHS.  HUD certified housing counselors are available to work with you to purchase your home.

What Are the Requirements to Qualify for the Down Payment Assistance?

  • Applicant must meet income requirements (at or below 80% of the area median income)
  • Applicant must attend 8 hours of pre and post purchase counseling (provided by NHS or other HUD approved homebuyer counseling agency)
  • Applicant must purchase a qualified home in the City of Hamilton
  • Other requirements may apply.  Contact NHS for details.

What Type of Property Is Eligible?

Single Family Residences - Maximum Purchase Price of $138,000

What Will I Learn in the Pre and Post Purchase Counseling Sessions?

NHS has HUD Certified Housing Counselors to review the topics listed below in a private, one on one counseling session.
  •  Are You Ready to Buy a Home?
  •  Managing Your Money 
  • Understanding Credit 
  • Getting a Mortgage Loan
  • Shopping For a Home 
  • Keeping Your Home 
  • Managing Your Finances

Down Payment Assistance Forgivable Loans
 What is required of the lender? 
  1. The lender must either deliver or mail a copy of the completed loan application packet to Neighborhood Housing Services, 100 S. Martin Luther King, Jr. Blvd., Hamilton, OH 45011.  This packet must include the loan application, credit report, TIL, GFE, tax returns, paycheck stubs, and appraisal.
  2. The lender must review the program design and requirements themselves and with their borrower.  The lender and borrower must abide by the program design and requirements
  3. The lender must work with Neighborhood Housing Services to ensure that all documentation has been received and inspections of the property have been completed, etc.
  4. Lender must forward the program requirements to the title company.
  5. REMEMBER:  Due to the inspection time frame, it is very important that you send all of the required documentation at the earliest date possible.  There is a two week turn around time on completion of inspections from the jurisdiction (City of Hamilton or Butler County).

 What is required of the title company? 

The title company must fax or email a copy of the settlement statement to NHS for review at least 48 hours before closing.   This allows NHS time to review the settlement statement and to cut checks.

Immediately after closing, the title company MUST fax a signed copy of the HUD Settlement Statement and a signed copy of the Mortgage and Note for the down payment assistance forgivable loan to NHS at 513-737-9304.

FISCAL YEAR 2016 HUD HOME PROGRAM INCOME LIMITS* 
Butler County, Ohio 
Number of Persons Per HouseholdLow 80% of IncomeVery Low 50% of IncomeExtremely Low 30% of Limits

1

$39,600

$24,750

$14,850

2

$45,250

$28,300

$17,000

3

$50,900

$31,850

$20,160

4

$56,550

$35,350

$24,300

5

$61,100

$38,200

$28,440

6

$65,600

$41,050

$32,580

7

$70,150

$43,850

$36,370

8

$74,650

$46,700

$40,890

Note: These household income limits were established by HUD EFFECTIVE June 6, 2016, Department of Housing & Urban Development *Source huduser.org/datasets/il.html (link from hud.gov)


City of Hamilton DPA Program Design and Requirements *Funds are available on a first come first serve basis and dependent upon the availibility of funds.  Please note loans that are closed after February 13, 2014, the maximum amount of down payment assistance will be capped at $5,000. 

Applicants below 80% of the Area Median income will be eligible to receive up to $5,000 for down payment assistance for an eligible single family detached house, (defined as a one family residence for down payment assistance, condominiums DO NOT apply). Applicant may not receive funds back at closing.

• Applicants must purchase a qualified home in the City of Hamilton.


• Applicants will be required to provide 1% of the purchase price of the home as equity contribution to the house purchase. The equity contribution can be in the form of down payment, closing costs, homeowners insurance, earnest money, application fee, and/or the cost of a whole house inspection. The applicant's contribution to the program must be in the form of a cash contribution; it cannot be borrowed money or gifted.

• After Neighborhood Housing Services has verified the eligibility of a client for down payment assistance funds, and a purchase contract has been executed, Neighborhood Housing Services will schedule a Housing Quality Standards (HQS) Inspection of the property with the respective jurisdiction. This inspection is to ensure that the property meets Minimum Quality Standards (CFR 982.401) and is not meant to substitute for a Whole House Inspection obtained by the buyer. Any property that does not pass HQS or where the seller in unwilling or unable to bring the property to HQS Standards, will be ineligible for the program. Buyer may obtain a third party inspector to perform a whole house inspection at buyers expense if they choose to do so.  However, the whole house inspection does not replace the HQS inspection. 

 

• Down Payment Assistance Program participants may obtain a loan from the lending institution of their choice. That loan must meet the following underwriting criteria: No more than 30% of family income devoted to principal, interest, taxes and insurance and no more than 42% of family income for overall indebtedness. Closing costs cannot exceed 5% of the purchase price. Borrower must have sufficient creditworthiness that satisfies the first mortgage lenders guidelines. Creditworthiness also includes not having filed bankruptcy in the last 2 years. First mortgages must be fixed rate loans with no negative amortization, balloon payments, or adjustable rate features. Borrower may use a cosigner when qualifying for the first mortgage. However, the cosigners' total household income shall be included as part of the buyer's total income when determining the borrower's income eligibility level. Taxes and insurance must be escrowed.   


• Execution of a restrictive covenant must be performed at closing and recorded at the Butler County Recorder's Office due to this being a five (5) year forgivable loan. Participants must remain in the premises as their primary residence for a period of five years. If the participant sells, gets foreclosed upon, or uses the property for rental purposes before the five (5) year period has expired, they will be required to reimburse Neighborhood Housing Services of Hamilton a pro-rated portion of the forgivable loan.

Fulfilling the above requirements is the sole responsibility of the homebuyer. Failure to fully satisfy the above Program requirements as determined by Neighborhood Housing Services of Hamilton, Inc. may result in a delay in funding or forgivable loan denial. Revised 09/13 Certificate #MB.803439.000

Butler County DPA Program Design and Requirements

• Applicants below 80% of the Area Median income may be eligible to receive down payment assistance for an eligible single family house, (defined as a one family residence for down payment assistance). Maximum amount of down payment assistance will be $5,000 per household. Applicant may not receive funds back at closing.

• Applicants must purchase a qualified home located in Butler County outside the City limits of Hamilton and Middletown.

• Applicants will be required to provide 1% of the purchase price of the home as equity contribution to the house purchase. The equity contribution can be in the form of down payment, closing costs, homeowners insurance, earnest money, application fee, and/or the cost of a whole house inspection. The applicant's contribution to the program must be in the form of a cash contribution; it cannot be borrowed money or gifted.

After Neighborhood Housing Services has verified the eligibility of a client for down payment assistance funds, and a purchase contract has been executed, Neighborhood Housing Services will schedule a Housing Quality Standards (HQS) Inspection of the property. This inspection is to ensure that the property meets Minimum Quality Standards (CFR 982.401) and is not meant to substitute for a Whole House Inspection obtained by the buyer. Any property that does not pass HQS or where the seller in unwilling or unable to bring the property to HQS Standards, will be ineligible for the program. Buyer may retain a third party inspector for a whole house inspection at buyers cost prior to the inspection by the jurisdiction. 

• Down Payment Assistance Program participants may obtain a loan from the lending institution of their choice. That loan must meet the following underwriting criteria: No more than 32% of family income devoted to principal, interest, taxes insurance, and if applicable, condominium association fees and no more than 42% of family income for overall indebtedness. Closing costs cannot exceed 5% of the purchase price. Borrower must have sufficient creditworthiness that satisfies the first mortgage lenders guidelines. Creditworthiness also includes not having filed bankruptcy in the last 2 years. First mortgages must be fixed rate loans with no negative amortization, balloon payments, or adjustable rate features. Borrower may use a cosigner when qualifying for the first mortgage. However, the cosigners' total household income shall be included as part of the buyer's total income when determining the borrower's income eligibility level. Taxes and insurance must be escrowed.

 • Execution of a restrictive covenant must be performed at closing and recorded at the Butler County Recorder's Office due to this being a five (5) year forgivable loan. Participants must remain in the premises as their primary residence for a period of five years. If the participant sells, gets foreclosed upon, or uses the property for rental purposes before the five (5) year period has expired, they will be required to reimburse Neighborhood Housing Services of Hamilton a pro-rated portion of the forgivable loan. Fulfilling the above requirements is the sole responsibility of the homebuyer. Failure to fully satisfy the above Program requirements as determined by Neighborhood Housing Services of Hamilton, Inc. may result in a delay in funding or forgivable loan denial.Fulfilling the above requirements is the sole responsibility of the homebuyer. Failure to fully satisfy the above Program requirements as determined by Neighborhood Housing Services of Hamilton, Inc. may result in a delay in funding or forgivable loan denial.

Revised 08/13Certificate #MB.803439.000

NHS/MiddletownLogo.jpg

   

City of Middletown DPA Program Design and Requirements

  • Applicants below 80% of the Area Median income may be eligible to receive down payment assistance for an eligible single family house, (defined as a one family residence for down payment assistance).  The amount of down payment/clsoing cost assistance is 6% of the purchase price not to exceed $5,000. 

  • Applicants must purchase a qualified home located in within the City limits of Middletown.

  • Applicants will be required to provide $500 as equity contribution to the house purchase. The equity contribution can be in the form of down payment, closing costs, homeowners insurance, earnest money, application fee, and/or the cost of a whole house inspection. The applicant's contribution to the program must be in the form of a cash contribution; it cannot be borrowed money or gifted.

  • After Neighborhood Housing Services has verified the eligibility of a client for down payment assistance funds, and a purchase contract has been executed, Neighborhood Housing Services will schedule a Housing Quality Standards (HQS) Inspection of the property. This inspection is to ensure that the property meets Minimum Quality Standards (CFR 982.401) and is not meant to substitute for a Whole House Inspection obtained by the buyer. Any property that does not pass HQS or where the seller in unwilling or unable to bring the property to HQS Standards, will be ineligible for the program. Any propety that does not pass these requirements must have ALL the violations corrected prior to loan closing. The City of Middletown's inspector inspects the property before assistance funds will be released for down payment assistance.

  • Down Payment Assistance Program participants may obtain a loan from the lending institution of their choice. Closing costs cannot exceed 5% of the purchase price. Borrower must have sufficient creditworthiness that satifies the first mortgage lenders guidelines. Creditworthiness also includes not having filed bankruptcy in the last 2 years. First mortgages must be fixed rate loans with no negative amortization, balloon payments, or adjustable rate features. Borrower may use a cosigner when qualifying for the first mortgage. However, the cosigners' total household income shall not be included as part of the buyer's total income when determining the borrower's income eligibility level.

  • Execution of a mortgage and note must be performed at closing and recorded at the Butler County Recorder's Office due to this being a five (5) year forgivable loan. Participants must remain in the premises as their primary residence for a period of five years. If the participant sells, gets foreclosed upon, or uses the property for rental purposes before the five (5) year period has expired, they will be required to reimburse Neighborhood Housing Services of Hamilton or the City of Middletown a pro-rated portion of the forgivable loan.

Fulfilling the above requirements is the sole responsibility of the homebuyer.  Failure to fully satisfy the above Program requirements as determined by Neighborhood Housing Services of Hamilton, Inc. may result in a delay in funding or forgivable loan denial.

Revised 1/14 Certificate #MB .803439.000

City of Middletown DPA Guidelines

Middletown Grant Application.pdf

Neighborhood Housing Services of Hamilton, Inc.
100 S. Martin Luther King Jr. Blvd
Hamilton, Ohio 45011

Ohio Mortgage Broker License #  MB.803439.000
Ohio Mortgage Lender License # SM.501559.000