See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 8, 2026
Homebuyer Programs in Lima, OH (2026)
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.
City Programs in Lima
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| First Home Lima Down Payment Assistance | Forgivable Loan | Up to $9,999 toward down payment and closing costs | Yes | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $9,999 toward down payment and closing costs
- First-time only:
- Yes
State Programs in Ohio
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Communities First Ohio Down Payment Assistance (The Port) | Grant | 3%, 4%, or 5% of the purchase price as a grant toward down payment and closing costs | No | View → |
| FHLB Cincinnati Welcome Home Program | Grant | Grants of $10,000 to $20,000; up to $25,000 for veterans, active-duty military, and surviving spouses | Yes | View → |
| OHFA Grants for Grads | Forgivable Loan | 3% for Conventional loans or 3.5% for Government loans (FHA, VA, USDA) of the purchase price, plus a discounted mortgage interest rate | Yes | View → |
| OHFA Mortgage Tax Credit | Tax Credit | Federal tax credit of 40% of annual mortgage interest paid, up to $2,000 per year (with OHFA loan). 15-20% with other lenders. | Yes | View → |
| OHFA Ohio Heroes | Forgivable Loan | 3% for Conventional loans or 3.5% for Government loans (FHA, VA, USDA) of the purchase price, plus a discounted mortgage interest rate | Yes | View → |
| OHFA Your Choice! Down Payment Assistance | Forgivable Loan | 3% for Conventional loans or 3.5% for Government loans (FHA, VA, USDA) of the purchase price | Yes | View → |
- Type:
- Grant
- Amount:
- 3%, 4%, or 5% of the purchase price as a grant toward down payment and closing costs
- First-time only:
- No
- 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
- 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
- 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
- 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
- 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
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- 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
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- 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
- 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
- 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
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- 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
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Habitat for Humanity Lima Area Homeownership Program | Zero-Interest Loan | Affordable home purchase with no-profit pricing and zero-interest mortgage | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home purchase with no-profit pricing and zero-interest mortgage
- First-time only:
- No
How to Apply
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.
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.
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.
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.
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.
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.
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.
Frequently Asked Questions
How much down payment assistance can I get in Lima?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the First Home Lima program and how does it work?+−
What homebuyer education is required?+−
What is the maximum home price I can purchase?+−
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