The Ohio Housing Finance Agency's Mortgage Tax Credit provides homebuyers with a direct federal tax credit on a portion of the mortgage interest, lowering their tax liability by up to 40 percent. The tax credit cannot be larger than the owner's annual federal income tax liability, after deductions, exemptions and other credits.

Homebuyers must have a tax liability in order to use this non-refundable credit. The mortgage tax credit is in addition to the IRS home mortgage interest deduction.

The size of the tax credit a homeowner receives is based on the location, property and type of mortgage:

Mortgage Tax Credit Plus

  • If you use the tax credit with a loan through OHFA's First-Time Homebuyer program, you receive a tax credit of 40 percent of the home mortgage interest. The maximum annual tax credit is $2,000. Homebuyers using the Mortgage Tax Credit Plus could have a slightly higher interest rate. Homebuyers are also able to couple the mortgage tax credit with 2.5% down payment assistance and OHFA Advantage Assistance*.

Mortgage Tax Credit Basic

  • If you use the tax credit with a different mortgage option from your lender, your tax credit percentage is 30 percent for the purchase of a bank owned property, 25 percent for a property located in a target area and 20 percent for all other properties.

*OHFA Advantage Assistance can only be used with conventional loans.


Am I Eligible?

You may qualify for an OHFA homebuyer program if you meet the criteria listed below:

  • You have not owned or had an ownership interest in your primary residence in the last three years.
  • You meet debt to income ratios for your loan type.
  • You meet income and purchase price limits.
  • You 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.

Please note that the Mortgage Tax Credit program cannot be used in conjunction with the RenovateOhio FHA 203(k) loan.


Homebuyer Education

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.


Already A MTC Holder?

Please view our Previous MTC Holder page for information regarding requirements to refinance/reissue a MTC.