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Homebuyer Programs in Parma, OH (2026)

Last updated April 8, 2026 | Population: 80,131 | Median home price: $238,000 | Est. closing costs: $5,000 - $7,000

Skyline of Parma, OH

Parma is the seventh-largest city in Ohio, located in Cuyahoga County just south of Cleveland in the Greater Cleveland metropolitan area. With a median home price around $238,000, Parma offers an affordable alternative to nearby Cleveland while still providing access to the same regional programs. Homebuyers in Parma can take advantage of the City of Parma Down Payment Assistance Program, which provides up to 10% of the purchase price (capped at $20,900) as a deferred loan, as well as the Cuyahoga County DPA offering the same terms. State programs like the OHFA Your Choice! Down Payment Assistance (3% to 3.5% of the purchase price as a forgivable loan) and the FHLB Cincinnati Welcome Home Program (grants of $10,000 to $20,000) can be stacked with local assistance for substantial savings.

Top Homebuyer Programs in Parma

City of Parma Down Payment Assistance Program
Type:
Deferred Loan
Amount:
Up to 10% of the purchase price, capped at $20,900
First-time only:
No
Cuyahoga County Down Payment Assistance Program
Type:
Deferred Loan
Amount:
Up to 10% of the purchase price, capped at $20,900
First-time only:
No
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
Greater Cleveland Habitat for Humanity Homeownership Program
Type:
Zero-Interest Loan
Amount:
Homes sold at no profit with 0% interest mortgages. Minimal down payment and closing costs required.
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. Most Parma programs require household income at or below 80% of Area Median Income and that you have not owned a home in the past 3 years.

  2. Step 2:

    Complete homebuyer education. CHN Housing Partners offers free homebuyer education classes required for the Parma and Cuyahoga County DPA programs. Contact them through Believe Mortgage at believemortgage.org.

  3. Step 3:

    Get pre-approved for a mortgage. Believe Mortgage (the lending arm of CHN Housing Partners) administers the local DPA programs. You can also work with an OHFA-approved lender for state programs. Find participating lenders at myohiohome.org.

  4. Step 4:

    Apply for down payment assistance. Apply through Believe Mortgage for the City of Parma DPA (up to 10% of purchase price, capped at $20,900). You may also qualify for the Cuyahoga County DPA with the same terms.

  5. Step 5:

    Find a home within Parma city limits. The home must be within Parma for the city program, or within one of 51 eligible Cuyahoga County communities for the county program.

  6. Step 6:

    Close on your home. Your DPA funds will be applied as a deferred, subordinated loan at closing. The loan is repayable only upon sale, transfer, or refinance.

Frequently Asked Questions

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