OHFA's Target Area Loan product helps revitalize federally designated target areas by making our affordable homebuyer loans and competitive interest rates available to any qualified buyer purchasing a home in these areas.
What is a Target Area?
A target area is a Census tract where the housing market is highly challenged. There are two types of target areas: Qualified Census Tracts (QCTs), which are based on household income data and designated by the U.S. Department of Housing and Urban Development (HUD), and Areas of Chronic Economic Distress (ACEDs), which are designated by OHFA and subject to federal approval. A home must be located in at least one of these to be eligible for a target area loan. Most Ohio counties contain both target and non-target areas. Determine whether a property is located within a target area by using the tool at the bottom of this page.
Am I Eligible?
Target Area Loan product applications do not have to be first-time homebuyers. However, the following program requirements apply:
- You must meet income and purchase price limits.
- You meet debt to income ratios for your loan type.
- You must meet credit score requirements.
- Conventional, USDA, VA and FHA 203(k) Loans: 640 or higher
- FHA Loans (Non-203(k)): 660 or higher. Credit scores of 650-659 are acceptable for an additional fee.
Click here to view a complete list of eligibility criteria.
Qualified buyers are required to complete free homebuyer education. OHFA's streamlined education program allows you to complete a course offered by any U.S. Department of Housing and Urban Development (HUD)-approved counseling agency in Ohio. Please note, OHFA homebuyer education is not completed until after homebuyer has submitted their loan application with their loan officer. Homebuyer Education is not required for borrowers who are only registered for our MTC Basic program.
How Do I Apply?
OHFA works with lenders, credit unions and mortgage companies across the state. Find an OHFA-approved lender in your area, along with tips to help you with the application process, or call us toll-free at 888.362.6432.
Target Area Map and Search
Scroll past the map below to enter in your search query.