COLUMBUS, Ohio — Ohio Treasurer Robert Sprague says one of the biggest obstacles to home ownership in the state is the ability to afford the down payment.
Starting in January 2024, the state is launching the Ohio Homebuyer Plus savings program. The Ohio General Assembly created the program as part of the state operating budget that Gov. Mike DeWine signed in July.
The program will offer what Treasurer Sprague calls "above market" interest rates to account holders who deposit money in participating banks and credit unions.
"Your interest rate today may be 4 to 5% that you can on your savings account or for a CD, we might be able to augment that by 1 to 4% depending on the interest rate conditions and the income tax deduction is also very valuable anywhere from 2.5% to 3.5% depending on your tax bracket," he said.
To qualify for the savings plan, one must be a resident of Ohio and be at least 18 years old.
You have to use the money for your primary residence and only use the money towards the downpayment or closing costs. You must use the money within five years after you start the program, and your maximum balance cannot exceed $100,000.
"The number one reason that people don't buy a house in the state of Ohio is they can't afford the downpayment because you need 20% down. That's what we are trying to address and it's not falling on deaf ears. That's what the Ohio homebuyers program does," says Sprague.
The state has not announced a start date for the program to begin, other than it will be available sometime this month. More information will be made at www.ohiotreasurer.gov.