OHFA downpayment assistance temporarily suspended

Just received this email from OFHA.  This will not affect you if you already have a loan being processed with their downpayment assistance but if you are currently house hunting and were planning on using this program- call your lender immediately to find out what your options are- and start saving some money!

See the memo below.

Subject:  Down Payment Assistance Programs-Temporarily Discontinued

Effective Date:  8:00am    October 13, 2008

 As volatility in the financial market continues, offering a product that meets the needs of first-time homebuyers has become increasingly difficult.  The ability to obtain capital to continue our programs is severely limited. Despite recent rate increases, program volume has continued at a pace that can not be sustained.  It has become evident that down payment assistance, not interest rate, is the primary reason today’s homebuyers select an Ohio Housing Finance Agency (OHFA) mortgage.

 To protect and continue our core First-Time Homebuyer Program, the Agency will temporarily discontinue our down payment assistance programs, effective at 8:00am October 13, 2008.  This announcement applies to both second mortgage loans and down payment assistance grants.  We will honor reservations for loans with down payment assistance made prior to this announcement. 

 OHFA’s mission is to “open the doors to an affordable place to call home” for Ohio families and we are proud to have helped thousands of borrowers through our down payment assistance programs.  It is a difficult decision to suspend these programs, but it is now imperative that we devote increasingly scarce resources effectively. 

 Borrowers can still purchase their home using the First-Time Homebuyer program. 

 We will continue to evaluate our programs and respond to the market as necessary.  We appreciate your patience as we work to preserve the program that for 25 years has helped thousands of Ohio borrowers purchase their first home. 

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