(The Center Square) – Potential Ohio homebuyers can get a higher interest rate and possible tax deductions by opening a new account created by the state to encourage home ownership.
Details of the Ohio Homebuyer Plus program began to come to light Tuesday, almost a year after Gov. Mike DeWine proposed the program in his state of the state address in January.
DeWine said Tuesday the program makes specialized, tax-advantaged savings accounts available through participating financial institutions designed for homebuyers. The program is expected to launch in January.
“This savings account program is part of our work to holistically improve access to adequate, affordable housing in Ohio,” DeWine said. “By making it easier for residents to save, we can help more Ohioans achieve their dreams of homeownership.”
The program, created by the General Assembly and included in the two-year budget, follows the same model used for the state’s Ag-LINK and Family Forward programs. Ag-LINK offers low-interest agriculture loans, while Family Forward provides low-interest loans to families seeking to adopt children.
Homebuyer Plus offers above-market interest rates, and accountholders could qualify for some Ohio state income tax credits. The minimum balance must be $100 and maximum balance of $100,000. The money can be used for a down payment or closing costs must be used within five years.
“To own a home in Ohio is to invest in Ohio,” state Treasurer Robert Sprague said. “However, prospective homebuyers face no shortage of challenges in today’s market, including the increasing amounts needed for their down payments and closing costs. Through Ohio Homebuyer Plus, we’re putting the strength of the state’s balance sheet to work for Ohioans as they build their nest egg and the savings needed to make one of life’s most important purchases.”
A potential homebuyer must be at least 18 years old and have their primary residence in Ohio. They will work with a participating bank or credit union to apply for the account.
