Eligible homebuyers can receive down payment assistance in the amount of 17% of total transaction. Total transaction calculates as purchase price plus 5% of purchase price for closing costs. Homebuyer will be responsible for a minimum of 3% of total transaction contribution towards the purchase. The assistance is provided in the form of a deferred, subordinate loans, up to $17,000, which are forgiven at the rate of 20% per year, over a five-year period, so long as buyer maintains the home as their primary residence, and no transfer is made in ownership of the property, whether voluntary or not.


Effective 03/01/2017, the U.S. Dept. of HUD adjusted the maximum purchase price limits for HOME assisted single-family houses. The limit for single family houses for the Cleveland-Elyria-Mentor MSA is now $129,000.


• Homebuyers may not have owned a home in the past 3 years.
• Homebuyers must occupy the dwelling as their primary residence.
• Homebuyers total household income cannot exceed the stated income limits and they must be current on all taxes.
• Loan to Value (LTV) of first mortgage may not exceed 80%.
• Housing Debt to Income (DTI) ratio may not exceed 28%.
• Overall DTI ratio may not exceed 43%.


• Single family, owner-occupied
• Existing houses or new construction
• Property must be occupied by the seller, or vacant for at least 90 days prior to closing
• Property must pass inspection by the City of Lorain
• Code violations must be corrected before the buyer can take title or occupy the house

Rate, broker fee, origination fee, and points of the first mortgage must not be excessive (not to exceed 2% of the first mortgage loan amount) for the type of mortgage obtained by the buyer: Conventional, VA or FHA. No balloon payment or prepayment penalties are allowed.

To learn more about income guidelines and our application process, take a look at our City of Lorain DPA Brochure.

Contact me for City of Lorain Downpayment Assistance:

Liz Sanchez
Call 216.458.4663