First quarter showed zip, but experts fear drop
Friday, May 26, 2006
Jeannine Aversa
ASSOCIATED PRESS

WASHINGTON — The economy showed even more pep than initially thought in the first quarter, bounding ahead at a 5.3 percent pace. But a less energetic housing market and high energy prices now are taking out some of the oomph.

“I think we sort of had the last hurrah for the economy for a while,” said Nariman Behravesh, chief economist at Global Insight. “We aren’t going to see this kind of growth for a bit.”

The figure released by the Commerce Department yesterday showed gross domestic product during the first quarter surpassing the 4.8 percent annual rate estimated a month ago. It marked the strongest growth spurt in 2 1 /2 years. The upgrade mostly reflected stronger U.S. exports and better inventory building by businesses.

GDP, which measures the value of all goods and services produced within the United States, totaled $11.39 trillion in the first quarter when annualized and adjusted for inflation.

President Bush, coping with his lowest job-approval ratings, said the GDP report provides evidence that “America’s economy is on the fast track.”

Some more forward-looking barometers, though, suggest economic growth may be moderating.

The housing market, once a star economic performer, is losing some of its shine as mortgage rates march higher. Sales of previously owned homes fell 2 percent in April to a pace of 6.76 million units, the National Association of Realtors said in another report.

House prices posted the smallest increase in 4 1 /2 years. And, the total number of unsold homes climbed to a record high of 3.38 million units.

Economists predict economic growth in the April-to-June quarter probably slowed to a pace of about 3 percent to 3.5 percent, which would still be decent. The performance of the housing market and energy prices will play key roles in shaping the ultimate outcome.

Yesterday, Federal Reserve Chairman Ben Bernanke said the central bank can’t turn a blind eye to price changes for stocks and homes when setting interest rates but should take action only when they threaten the overall economy.

Bernanke suggested that the Fed shouldn’t try to identify and then prick speculative bubbles in home or stock prices that might develop.

There is little or no evidence that the Fed “is better able than the market to identify speculative bubbles and that it can successfully ‘deflate’ such bubbles without harming the broader economy,” he wrote in response to questions raised by Rep. Jim Saxton, R-N.J.

Thursday, March 30, 2006

By SUE HAGAN

A nonprofit community housing organization is proposing that condos for homeowners of varying income levels be built on the current Barrett Middle School site at 345 E. Deshler Ave.

Rev. John Edgar, executive director for Community Development for All People, said his group is looking at the possible redevelopment of the six-acre Barrett property. The school, now in operation, will close in June as one of 12Columbus Public Schools slated to close before next fall.

Edgar emphasized that the concept is “extremely preliminary” and will “become a better plan after conversations” with community members and city officials.

He met with two Merion Village Association (MVA) board members on Monday, and plans to introduce the idea to the general membership at its April 5 meeting.

Elements of the concept are as follows:

# Preserve the historic part of Barrett Middle School, which was built in 1898 and was the original South High School, and develop it into condominiums or office space.

# Tear down the newer school additions, built in 1955 and 1965.

# Develop the open land into condominiums — 80 percent of which would be sold at market rate and 20 percent at prices affordable to homeowners who could afford a more modest mortgage. Subsidies would make up the difference.

# Work out a property trade with the school district, so the city would own the Barrett property and offer it for the project.

Admitting that there are a lot of “ifs” that would have to be resolved, Edgar said that City Council President Matt Habash has encouraged his group to pursue this.

He also said that, based on preliminary discussions, the Enterprise Foundation –a national organization that works with nonprofit groups onhousing issues — has indicated it might approve a loan for the venture.

Edgar said the profit from the sale of the condos would mostly be put back into the subsidies.

“This does nice things for income to the city if we talk about 50 to 70 families, with market rate folks who can afford the full amount,” Edgar said. “It also creates a shot in the arm for the business folks too, and continues to give the impetus for revitalization.”

Bob Leighty, MVA president, said the idea is intriguing.

“We are glad that Rev. Edgar is coming to the community early in the process, and we appreciate his interest in working to incorporate neighborhood ideas into their project,” he said.

“Barrett … is an historic and special place, and we look forward to the discussion about ideas for an appropriate redevelopment that respects Barrett’s educational and community history and sup- ports our diverse neighborhood,” he said.

Although conversations have not yet been initiated with CPS administrators, Edgar said he understands that the school district has no plans for the building.

“To have it stand vacant is a detriment,” he said. “If it’s vacant very long it will become an eyesore, it will be vandalized. And that is an incredibly attractive piece of real estate.”

Carole Olshavsky, CPS senior executive for capital improve- ments, was out of town and could not confirm district plans for the building.

Edgar said his idea has precedent and is working in other parts of the country.

“There are whole sections in the (Washington) D.C. area and in parts of Massachusetts … where developers have to promise that a certain percentage (ofhousing) will be available to people at or below 80 percent of the median income in the area,” he said.

He said a passerby “can’t tell from the street who has the condo that he paid $550,000 for, and who has one that was subsidized enough that it is affordable.

” … This creates a way to do upscale development that doesn’t price everybody out of the market. … We are being intentional about planning a new development where diversity is built in,” he said.

Edgar said he will try to build community support for the idea, including in German Village and Schumacher Place.

“Beyond that, we hope this idea will gain some energy and neighborhood groups across the city will see it as a model,” he said.

Community Development for All People is one of eight nonprofits approved by the city to develop affordable housing.

It is best known for the Free Store it has operated for seven years on the South Side; the store last year gave away $1.5-million worth of items, Edgar said.

Stability reigns in central Ohio real estate
Sunday, February 26, 2006
Lee Stratton
THE COLUMBUS DISPATCH

Sorry to burst your bubble, but there isn’t a housing bubble to burst.

Central Ohio homeowners — or buyers — who worry about getting burned by the oft-predicted bursting of a real-estate bubble can rest easy: Nothing is likely to go “Pop!” and wipe out a big chunk of owners’ home equity.

Local home values are not overinflated, according to a variety of national and local analyses.

Instead, local values are most likely to keep chugging along at a below-average rate of appreciation.

But Ohio’s lagging economy, an abundance of houses on the market, and increasing interest rates and energy prices could slow central Ohio’s real-estate market.

“That’s not a bubble bursting,” said Walt Molony, spokesman for the National Association of Realtors. “A price bubble requires abnormal inflation.”

The Midwest, and Columbus in particular, has not had anything close to the annual appreciation experienced in Boston, San Francisco, portions of Florida and other areas of the Northeast and the West Coast. They have seen increases from 18 percent to 40 percent because there aren’t enough homes to meet an ever-growing demand.

The $177,978 average sales price of a single-family Ohio home in 2005 was about 4 percent more than the previous year, according to the Columbus Board of Realtors. That was far below the national average appreciation of 12.7 percent.

Central Ohio home prices have not escalated as much because of the plentiful supply of affordable homes and a demand dampened by a sluggish economy. Here are some indicators of why a real-estate bubble is unlikely in central Ohio:

• The cost of housing remains modest. The median selling price of owner-occupied homes (excluding newly built houses) in central Ohio last year was $152,000, about $55,000 less than the national average. Twenty other metro areas had median prices more than double that of Columbus. They include $446,500 in New York, $414,000 in Boston and $715,700 in San Francisco, according to the National Association of Realtors.

• Central Ohio is building homes faster than the population is growing. Between 1990 and 2004, central Ohio had a 31 percent increase in housing units and a 21 percent increase in population, according to the Mid-Ohio Regional Planning Commission. Between 2000 and ’04, the area added houses at nearly twice the rate of population growth.

• Central Ohio has lagged the nation in the creation of new jobs, which can escalate prices. The U.S. average job-growth rate was between 1.3 percent and 1.5 percent in the past five years, while the number of central Ohio jobs declined nearly 1 percent.

• Homes remain affordable in central Ohio. The median price of a central Ohio single-family home is 160 percent of the median household income, compared with a national average of 230 percent. In the 20 most expensive metropolitan areas, the average median home price is 380 percent of household income.

• Mortgages eat up less of central Ohioans’ income. The average annual cost of a mortgage in central Ohio is 12 percent of the average household income, compared with a national average of 16 percent and a top-20 cities average of 30 percent.

• It’s easier to build in central Ohio than in some bigger growing markets. In the past three years, central Ohio builders have added more single-family houses than were built in metro areas with the highest prices and larger populations, according to the U.S. Census Bureau. Columbus, with a metropolitan population of 1.7 million, added 31,458 houses. Greater Boston, with a population of 4.4 million, added 23,213; San Francisco, with 4.1 million people, built 24,760; San Diego, with 2.9 million residents, added 26,365 houses.

‘‘Even if there were a sudden increase in demand in Columbus, you can add to the housing stock. There’s room to build,” Molony said.

‘‘In Columbus, first-time buyers can start out in a single-family home. In places like San Francisco, it is more likely to be a low-end condo.

‘‘The hallmark of the Midwest is gradual increases in housing prices.”

Franklin County Auditor Joe Testa said examination of property values indicates long-term, predictable growth.

‘‘We don’t see any serious evidence to the contrary,” he said.

Several recent studies reached the same conclusion.

A 2005 analysis by the National Association of Realtors concluded that it would take mortgage interest rates of 17.2 percent coupled with a loss of 41,000 jobs to trigger a 5 percent fall in central Ohio home prices.

Interest rates are expected to remain below 7 percent this year, and Columbus is projected to have a modest increase in jobs.

The chances of central Ohio home values falling in the next two years are about six in 100, according to PMI Mortgage Insurance Co. That ranking places Columbus 45 th among 50 metro areas in terms of a pricefall risk.

In contrast, San Diego, Boston, San Francisco and Los Angeles are among a dozen cities with a greater than 50 percent chance of a price decline in the next two years.

‘‘Prices in San Francisco have been going up 18 percent, year for year,” said Beth Haiken, vice president of the PMI group, a mortgage insurance company. ‘‘Home prices have been increasing so much faster than income.”

Those metro areas have growing economies that continue to generate population increases even though land for new home construction is scarce and expensive, she said.

‘‘Markets on the coasts tend to be more volatile in their ups and downs. The middle of the country tends to be more linear, moving with income,” Haiken said.

Most predictions call for 2006 to be a national cooling-off period in housing, with about 5 percent fewer sales and an average appreciation of between 5 and 6 percent.

For central Ohio, that means homes likely will take longer to sell and may not fetch as much money as the sellers had hoped. But most homes will continue to appreciate in value from year to year, said Chris Reese, president of the Columbus Board of Realtors.

More than 14,500 homes are for sale in central Ohio, about 22 percent more than a year ago, according to the board.

‘‘It has turned into a buyer’s market,” Reese said.

Much of the unsold inventory is in new construction — including condominiums, she said. Houses priced at $120,000 to $140,000, and those between $200,000 and $250,000, supply the greatest number of for-sale signs, and the largest number of sales.

Despite the rise in inventory, 2006 should still set a record for number of homes sold in central Ohio when the final numbers are in, Reese said. January sales totaled 1,346, a 7.2 percent increase over the 1,252 sold in January last year. The average sale price last month was $172,267, a 2.6 percent increase from January 2005.

Too many houses and too few new jobs can lead to some price softness, said Molony, of the national Realtors group.

‘‘What results is a glacial pace of appreciation,” he said. ‘‘That is not a bubble.”

The ‘‘B” word is a stock market term that doesn’t apply to the housing market, said Haiken, of PMI. It aptly defines the 1990s boom-and-bust of high-tech stocks.

Aside from speculators who have been flipping condos in Florida, people invest in homes with the expectation of living in them for seven or more years, she said.

‘‘It’s not an investment that will pop instantly like a bubble,” she said.

Some metropolitan areas that PMI identified as high-risk are more like a balloon that that can inflate or deflate slowly without breaking, she said.

‘‘That’s how the housing market tends to work, even on the West Coast.”

Business First of Columbus – 10:22 AM EST Thursday

Brian R. Ball
Business First

The number of single-family houses sold in Central Ohio set another record in 2005, but the pace of the increase slowed from the previous four years amid a general cooling in the housing business.

Still, the president of the Columbus Board of Realtors expects sales to approach another record this year in Central Ohio as moderate mortgage rates combine with a growing inventory of houses for sale to give buyers an upper hand.

The Board of Realtors said that its members sold 27,493 houses and condominiums in the Columbus area last year, a 3.1 percent increase from 26,660 residences sold in 2004.

That increase paled, however, compared to the 7 percent to nearly 10 percent annual increases registered over in the last several years.

“I guess we can’t just keep up the pace,” said Chris Reese, a Metro II Realty agent who is the 2006 Columbus Board of Realtors president. “At some point that has to break.”

Indeed, the nation set a record in housing sales in 2005, with nearly 7.1 million sold — a record for the fifth straight year, even as sales dropped in December, said the National Association of Realtors. But experts said they saw inventories of houses for sale in some cities with troubled economies — such as Columbus — rising, which would put a drag on the market’s overall performance this year.

Statistics from the Columbus realty board showed the 2005 average sales price increased 4.4 percent to $177,978 from $170,522 in 2004 in the region.

The national median sales price in December was $211,000, the national association reported.

The Columbus agency compiled its report from sales in Franklin, Delaware, Fayette, Morrow, Madison and Union counties and parts of Fairfield, Licking, Marion, Pickaway, Knox, Clark, Champaign and Logan counties.

The combined 2005 sales volume came in just under $4.9 billion, a 7.6 percent increase from $4.6 billion in 2004.

Reese said the board’s Multiple Listing Service has 14,000 listings — another record. That supply of houses for sale should make it a buyers’ market this year.

“In order to have a faster sale, you have to price your home … comparable to the rest of the competition,” she said. “With that many homes on the market, buyers will shop … to get the best price.”

Houses on the sales block in 2005 took an average of 86 days to sell, or three days longer than in 2004. The 1,829 residences sold in December took 93 days to sell, or two days more than a year earlier, said board statistics.

Ohio home sales rose 1.1 percent in November, keeping the state on pace for a record-setting year, the Ohio Association of Realtors said Thursday.

Ohio real estate agents sold 10,861 single-family homes and condominiums in November, compared with 10,738 in November 2004. The average price of homes around the state rose 3.5 percent to $154,671, from $149,412 last November.

For the year so far, Ohio real estate agents sold 134,768 homes, up 4.9 percent from 128,415 in the first 11 months of 2004. The average price of homes hit $157,056, up 3.3 percent from $151,998 in the first 11 months of 2004.

Interest rates have risen but still remain relatively low, said association President Jim West. Home buyers continue to find options in all price ranges.

“Ohio’s housing market continues to surpass even our most optimistic expectations,” West said in a press release.

Central Ohio home sales tracked statewide home sales in November. Home sales in Central Ohio rose 1.3 percent in November and are up 3 percent for the year, the Columbus Board of Realtors said last week.

The association gathers data from multiple listing services around the state. Its data include the sales of new and existing houses and condos. The tally includes only transactions reported to the listing services and often doesn’t include residences sold by their owners and homes sold by builders.

The public interest
Thursday, December 15, 2005

Joe Testa

A woman, once homeless, told the story recently of how she had been helped by local agencies that work to ensure low-income residents have affordable housing opportunities in our community.

Today, this Franklin County resident is now working toward a college degree, quickly moving down the road to a better life.

It’s stories like this that help illustrate the need to provide additional affordable housing options in Franklin County.

I recently testified at a public hearing to express my support for increased funding for affordable housing and the agencies and programs that provide these services. The Franklin County commissioners have been conducting public hearings on their plan to double the real estate conveyance fee, collecting an additional $6.8-million per year to fund this initiative.

During my testimony, I presented a plan to the commissioners that would provide the requested increase in funding to $6.8-million for these important initiatives, but without any additional taxes and without jeopardizing the county’s strong financial position.

In fact, even with the increase in funding for affordable housing from the county general fund, Franklin County would fare better than most other counties of similar size that have secured the coveted “double, Triple A” bond rating from the nation’s leading credit rating agencies.

Some have said that because Franklin County’s real estate conveyance fee is at the lowest possible amount — the state-required $1 per $1,000 of sales price — the tax should be raised to bring it in line with surrounding counties. This, in my opinion, is wrong.

I am a firm believer that government should never impose more taxes than are really needed. Just because we are lower in that particular tax than surrounding counties is not a sufficient reason to raise ours.

Other counties aren’t like Franklin County. Some of the smaller, more rural counties likely need the additional general fund dollars brought in by the increased transfer tax because they don’t have sales tax or real estate tax receipts anywhere near Franklin County’s.

We have benefited from a strong real estate market with stable property values and the addition of more than $1-billion in new construction activity each year. That’s private investment, which adds to the tax base.

The county commissioners raised the county sales tax earlier this year, which is expected to bring in an additional $88-million per year. When that increase was adopted, it was believed that a conveyance tax increase was off the table. At the Dec. 8 hearing, one of the commissioners stated that my position was raised at the 11th hour.

This is not true. I made it clear last summer that I would oppose an increase in the conveyance tax when commissioners were considering several tax increases, a fact acknowledged by a member of their staff after the hearing.

My office’s analysis clearly shows that Franklin County government’s cash reserves are very large and building rapidly. While it is certainly prudent to hold some funds in reserve for a rainy day, governments should never impose new taxes in order to run up the reserves when they are already higher than nearly every other top-rated county in the U.S. of comparable size. The public can put those dollars to better use itself.

Several speakers at the recent public hearing expressed a desire for a dedicated fund for affordable housing. If commissioners wish to earmark $6.8-million each year for affordable housing, they can do that right now without raising taxes. That decision, however, would not be legally binding on future commissioners, regardless of whether they impose this new tax.

There is no question that affordable housing is an issue that must be addressed in our community. As county auditor, I administer the state’s Homestead Exemption program that provides real estate tax relief for qualifying seniors and disabled property owners, and I have led my office staff to contribute significantly to help homeless families in our community. I’d like to see us do more. While testifying in support of affordable housing funding, I told commissioners that I would like to work with them to explore the possibility of creating a “Homestead Exemption Part B” program to assist Franklin County seniors who just barely miss qualifying for the existing Homestead Exemption program.

This would allow us to reach even more seniors and help them stay in their homes.

We can accomplish this without placing an additional tax burden on our residents. Those interested in reviewing the data I presented to the commissioners may view it on my Web site under “affordable housing proposal” on the home page at www.franklincountyauditor.com.

December 1, 2005

A typical family can afford about 66.5 percent of the homes in the Columbus market, according to a study by the National Association of Home Builders.

Columbus ranked No. 54 for housing affordability, out of 160 markets surveyed. It ranked No. 25 for its region.

The study compared how many homes in each market are affordable by families making the median income. The study assumes families spend about 28 percent of their income on their mortgage. The median Columbus household income was $63,900 a year, and the median home price was $167,000 in the third quarter of 2005.

The median home price means half of home prices are above the median price, and half are below it.

Indianapolis was rated the nation’s most affordable housing market, with 89.7 percent of its housing stock within reach of the median-income family. Los Angeles was the least affordable market — a median-income family in L.A. can afford 2.4 percent of homes.

Nationwide, about 43 percent of new and existing homes are affordable to median-income families, according to the study. That’s a decline of 2.7 percentage points since the association began the survey in 1992.

The association blamed the decrease on a rise in home prices. Home prices can be a “double-edged sword,” said NAHB president Dave Wilson. Home appreciation adds to the wealth of people who already own homes, but make it more expensive for others to buy homes.

JEANNINE AVERSA
Associated Press

WASHINGTON – While the high-flying housing market still holds risks, especially for the financially stretched, most homeowners are in a fairly good position to weather a shock if prices drop, Federal Reserve Chairman Alan Greenspan said Monday.

“The vast majority of homeowners have a sizable equity cushion with which to absorb a potential decline in house prices,” he said in remarks delivered via satellite to a banking conference in Palm Desert, Calif.

Still, Greenspan, who has repeatedly warned about the potential perils if the housing market were to suddenly go south, also made clear that there are several factors – risky mortgages and speculative activity in particular – that warrant close scrutiny.

The quicker turnover of second homes – such as for investment or vacation purposes – appears to be feeding the surge in house prices, Greenspan said.

“Speculative activity may have had a greater role in generating the recent price increases than it customarily has had in the past,” he said.

Greenspan’s latest thoughts on the housing market came after the National Association of Realtors reported that sales of previously owned homes in August posted their second-highest level on record. Home prices, meanwhile, increased by the largest amount in 26 years.

Sales rose 2 percent in August to a seasonally adjusted annual rate of 7.29 million units; that was second only to the all-time high pace of 7.35 million units in June.

Low mortgage rates have been powering home sales, which hit record highs four years in a row and are expected to set a new record this year.

Median house prices climbed to a record of $220,000 in August, a gain of 15.8 percent from the same month a year ago. That was the biggest 12-month increase since July 1979.

Sales were up in all regions of the country except for the South, where they dipped. Because Hurricane Katrina hit in late August, its full brunt was not completely captured in the August sales figures, the association said.

On Wall Street, the Dow Jones industrials gained 24.04 points to close at 10,443.63,

Although his speech was devoted almost totally to the housing market, Greenspan did briefly mention that the Fed will be watching carefully the aftermath of hurricanes Katrina and Rita.

“In the weeks and months ahead, the Federal Reserve will continue to closely follow the consequences of the recent devastating events in the Gulf Coast region in order to assess their implications for our economy,” he said.

Citing a research paper he co-wrote, Greenspan said the run-up in house prices has left households with a substantial pool of available home equity. Four-fifths of the increase in home-mortgage debt has come from people taking cash out of their appreciated homes through refinancings, home-equity loans and other things, he said.

“After discussing all the risks, Greenspan summed up by saying the share of households who are very highly leveraged is lower than expected and is not correlated closely with high home price states, other than California,” said Doug Duncan, chief economist at the Mortgage Bankers Association.

Greenspan continued to register concerns about soaring house prices and risky mortgages on expensive homes. He also repeated his warning about signs of “froth” developing in some local markets that may be driving house prices to “unsustainable levels.”

But Greenspan said it was unclear whether such exuberance would spread to more local markets.

“It is still too early to judge whether the froth will become evident on a widening geographic scale or whether recent indications of some easing of speculative pressures signal the onset of a moderating trend,” he said.

An end to the housing boom could have a silver lining, the Fed chairman added, because it probably would be accompanied by a moderation in the growth of consumer spending. That could lead to a boost in Americans’ personal savings rate, which has been dismally low, and could curb Americans’ insatiable appetites for foreign-made goods, helping to narrow the United States’ bloated trade deficit, he said.

“Housing is a fault line in the economy that Greenspan is indeed worried about, but he doesn’t think a housing (slowdown) will undermine the expansion,” said Mark Zandi, chief economist at Economy.com.

Thursday, September 1, 2005

Harley E. Rouda Jr.

If you think you may be ready for a life transformation, you have access to various ways of changing your living situation — while alleviating the stress of doing so.

Individuals older than 55 have a variety of affordable and accessible housing options from which to choose, including condominium housing, downsizing into a smaller home or purchasing vacation homes.

More and more people realize that condos strike the perfect balance among independence, building equity, low maintenance and a manageable price. When condensing your large family home, choosing a condo may be an easier life adjustment, because unlike an apartment, the property inside your condominium is your own to personalize.

Since the exterior areas of a condominium are owned by the condo association, however, maintenance such as irritating snow removal and exhaustive lawn mowing can be eliminated with the purchase of a condo. A manageable fee usually covers these services, as well as garbage disposal and repairs of common exterior problems.

If a condo isn’t right for you, but your family home has become too large in the past few years, it may be time to make an adjustment to a smaller house. By downsizing your belongings you can free up your storage space — and free yourself of climbing up the attic stairs. A more accessible floor plan and a smaller space can also save you time and energy in your everyday life.

A home in another location is also another liberating adjustment to your routine. What you may not realize is that the usual vacation home is not a million-dollar house on the beach or an expensive ski condo in the mountains. The option may be more affordable than you realize.

Owning a second home can be a stable and satisfying investment when dealing with our unpredictable economy. Lenders are always willing to finance vacation properties with increasingly competitive terms, often comparable to the rates available for primary residences.

So if you’re ready to take on retirement living, call your favorite local Realtor to help find an option that will meet your changing lifestyle needs.

June 1, 2005

Columbus, OH — Governor Bob Taft today proclaimed June as Ohio Homeownership Month, highlighting the impact of homeownership on Ohio’s economy and communities.

“Investing in homeownership continues to provide countless benefits to Ohioans, their communities and the State’s overall economy,� said Taft. “Homeownership is not only one of the best investments individuals and families can make, it also supports many important industry sectors, creates jobs, helps strengthen our communities and provides numerous social benefits.�

According to U.S. Census Bureau statistics, Ohio’s homeownership rate has consistently increased in the last few years to 73.1 percent in 2004. Efforts are continuing to be made to make homeownership an affordable option throughout Ohio.

A study by The Ohio State University in 2003 found that homeownership can provide numerous social benefits including a more stable household, increased social involvement, heightened environmental awareness, positive child outcomes, improved health, reduced crime rates and enhanced property values.

The Ohio Housing Finance Agency (OHFA), a division of the Ohio Department of Development, offers options to Ohioans interested in purchasing a home. The First-time Homebuyer Program provides conventional or FHA-Insured financing services to buyers. Both the My Ohio Mortgage conventional loan and the FHA-Insured loan package are offered through participating lenders in Ohio’s 88 counties. In addition, OHFA also administers the Mortgage Credit Certificate Program, which allows first-time homebuyers obtain a federal tax credit on a portion of their mortgage interest. Since 1983, the First-time Homebuyer Program has helped nearly 100,000 Ohioans purchase a home.

“It’s important that Ohioans have a number of options available to them when purchasing a home,� said Doug Garver, Executive Director of OHFA. “Our programs have helped many Ohioans experience the American dream of homeownership.�

Applicants must either be a first-time homebuyer, must be purchasing a home in a designated state target area, or must not have owned a home for at least three years. Qualifications for the program are based on household income and the purchase price of the home. To obtain more information on OHFA’s First-time Homebuyer Program visit www.ohiohome.org, or contact OHFA toll-free at (888) 362-6432.