CLEVELAND HEIGHTS, Ohio — Cleveland Heights wants to bring new people into their community, so they’re offering financial assistance as an incentive.
The incentive is not yet available, but it is expected to roll out in the next month, according to Cleveland Heights City Council President Tony Cuda.
“It's an ARPA funded program that helps potential homeowners with down payment assistance and possibly loans,” Cuda said.
An application portal is not live as of Sunday night, but we want you to know who qualifies for when the time comes.
Applicant(s) must be at or under the income guidelines published by HUD. Currently, the income guidelines for their household size are:
| | 2024 Gross Income Limit* | |
| Household Size* | 80% AMI | 120% AMI |
| 1 | $54,450 | $81,650 |
| 2 | $62,200 | $93,300 |
| 3 | $70,000 | $100,500 |
| 4 | $77,750 | $116,650 |
| 5 | $84,000 | $125,950 |
| 6 | $90,200 | $135,300 |
Applicants must then meet the following requirements:
- Receive certification of completion of pre-purchase and home maintenance counseling from a HUD-approved agency.
- Contribute a minimum of 3.5% of the purchase price towards the first mortgage. (gifts funds also eligible)
- Receive approval and first mortgage commitment for the purchase of the home from mortgage lender.
The mortgage rate and other possible fees (such as broker fee, origination fee and points) must not be excessive for the type of mortgage obtained by the buyer: conventional, FHA, VA. No prepayment penalties or balloon payments.
The property must be inspected for code violations and lead/defective paint. Defective paint issues must be satisfied prior to application and initial inspection by the City of Cleveland Heights.
The property must be occupied by the seller or vacant for a minimum of 90 days.
Health and safety code violations must be satisfied before the owner can receive approval to occupy the home.
“We really tried to start this over a year ago, but it just takes time to get. It would have been good to have done it right after COVID, but I'm glad we're doing it,” Cuda said. “Part of the assistance, you could get up to $30,000 without having to pay back and the rest would be a loan.”
Program guidelines would be:
- Up to $30,000 Down Payment Assistance for a Single-Family Home
- Up to $50,000 Down Payment Assistance for a Two-Family Home
- 50% forgivable over 5 years for households under 80% AMI
- 50% forgivable over 5 years for households under 120% AMI in qualified census tracts
This is a deferred payment, 0% interest loan. The loan is to be repaid immediately at the time of resale, transfer, or if the property becomes absentee-owned.
The loan is secured by a second mortgage held by the City of Cleveland Heights.
“We've always offered some home purchasing down payment assistance, but the ARPA funds have given us a new opportunity to kind of extend that program,” Cuda explained.
Down payment assistance is available to eligible applicants to cover title search fee, recording fees, filing fees, credit report, pre-purchase inspection, buyer’s legal fees, closing costs, and property appraisals.
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, FHA. No balloon payment or prepayment penalty is allowed.
Eligible lenders and exact income limits will be verified and updated annually.
When Cuda was asked why people should consider looking to Cleveland Heights for their new home, he said the city is filled with a plethora of opportunities and knowledge.
“It's this wonderful diverse community with just the most amazing people. It's so lively here every time we have council meetings. People come and express really strong, smart opinions. We're like the United Nations, very cosmopolitan. I just think if you want a kind of world class experience, this is the place to be. We're diverse economically, racially, socioeconomically. We've got a little bit of everything,” Cuda described.
Cuda said for more information, stay tuned over the next couple of months.
