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Homebuyer Programs in Lima, OH (2026)

Last updated April 8, 2026 | Population: 34,794 | Median home price: $125,000 | Est. closing costs: $2,500 - $4,000

Skyline of Lima, OH

Lima is a city in northwest Ohio and the county seat of Allen County, home to approximately 34,794 residents. With a median home price around $125,000, Lima is one of the most affordable housing markets in Ohio, making homeownership within reach for many buyers. The city offers the First Home Lima Down Payment Assistance program, providing up to $9,999 in forgivable assistance for first-time buyers purchasing within city limits. At the state level, the OHFA Your Choice! Down Payment Assistance program provides 3% to 3.5% of the purchase price as a forgivable loan, and the FHLB Cincinnati Welcome Home Program offers grants of $10,000 to $20,000. Habitat for Humanity Lima Area also serves the community with affordable homeownership opportunities. With Lima's low prices and strong program availability, eligible buyers can often cover most or all of their upfront costs through assistance programs.

Top Homebuyer Programs in Lima

First Home Lima Down Payment Assistance
Type:
Forgivable Loan
Amount:
Up to $9,999 toward down payment and closing costs
First-time only:
Yes
FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No
Habitat for Humanity Lima Area Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home purchase with no-profit pricing and zero-interest mortgage
First-time only:
No
Communities First Ohio Down Payment Assistance (The Port)
Type:
Grant
Amount:
3%, 4%, or 5% of the purchase price as a grant toward down payment and closing costs
First-time only:
No
FHLB Cincinnati Welcome Home Program
Type:
Grant
Amount:
Grants of $10,000 to $20,000; up to $25,000 for veterans, active-duty military, and surviving spouses
First-time only:
Yes
OHFA Grants for Grads
Type:
Forgivable Loan
Amount:
3% for Conventional loans or 3.5% for Government loans (FHA, VA, USDA) of the purchase price, plus a discounted mortgage interest rate
First-time only:
Yes
OHFA Mortgage Tax Credit
Type:
Tax Credit
Amount:
Federal tax credit of 40% of annual mortgage interest paid, up to $2,000 per year (with OHFA loan). 15-20% with other lenders.
First-time only:
Yes
OHFA Ohio Heroes
Type:
Forgivable Loan
Amount:
3% for Conventional loans or 3.5% for Government loans (FHA, VA, USDA) of the purchase price, plus a discounted mortgage interest rate
First-time only:
Yes
OHFA Your Choice! Down Payment Assistance
Type:
Forgivable Loan
Amount:
3% for Conventional loans or 3.5% for Government loans (FHA, VA, USDA) of the purchase price
First-time only:
Yes

How to Apply

  1. Step 1:

    Check your eligibility. The First Home Lima program requires household income at or below 80% of the area median income for Lima. You must be a first-time homebuyer and get lender pre-approved before applying.

  2. Step 2:

    Complete homebuyer education. The First Home Lima program requires completion of the First Home Lima Housing Counseling Program. West Ohio Community Action Partnership (WOCAP) at (419) 227-2586 provides HUD-approved counseling.

  3. Step 3:

    Contact New Lima - Housing For The Future at (419) 224-9881 or the City of Lima Department of Housing and Neighborhoods at (419) 221-5146 to apply for First Home Lima assistance of up to $9,999.

  4. Step 4:

    Get pre-approved for a mortgage through an OHFA-approved lender. This ensures you can access state programs like Your Choice! Down Payment Assistance and the Mortgage Tax Credit simultaneously.

  5. Step 5:

    Apply for the FHLB Cincinnati Welcome Home Program through a participating member bank or credit union. Grants of up to $20,000 are available on a first-come, first-served basis each year.

  6. Step 6:

    If you are interested in a Habitat home, contact Habitat for Humanity Lima Area at (419) 222-4937 to learn about their homeownership program.

  7. Step 7:

    Find a home in Lima within program guidelines. The First Home Lima purchase price limit is $209,000 for single-family homes. Submit your applications and work with your lender to coordinate timing.

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