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City of Lorain
City of Lorain down payment assistance: up to $14,900
First-time buyers, or anyone who has not owned in three years, can get up to $14,900 toward a single-family home in Lorain as a 0% loan forgiven over five years.
Fact box
City of Lorain HOME Down Payment Assistance Loan
Money can run out
City of Lorain
For
First-time buyers or no ownership in 3 years
Amount
Up to 10% of down payment/closing need, max $14,900
Form
Forgivable loan
Income cap
80% AMI (2026): $75,600 (3 people) / $84,000 (family of 4)
Price cap
HUD HOME homeownership value limit (contact City)
First-timers only
Yes
Fine print
Buyer contributes up to 3% of price, at least $1,000; housing ratio no more than 30% and total debt no more than 43%; HUD-approved education certificate BEFORE signing a purchase agreement; 30-year fixed; City NSPIRE inspection; single-family
0% deferred loan forgiven 20%/year over 5 years. 2026 brochure and application are posted.
Status watch. City of Lorain HOME Down Payment Assistance Loan has a fixed pot of money that can run dry. Sign up and we will tell you when a new round is funded.
How does the Lorain loan work?
The City of Lorain Department of Building, Housing and Planning runs this HUD HOME-funded program. It covers up to 10% of your down payment and closing need, with a maximum of $14,900. The money is a 0% deferred loan forgiven 20% each year, so it is fully forgiven after five years in the home. The City has posted its 2026 brochure and application, but funding is limited.
Who qualifies?
You must be a first-time buyer or have no ownership in the past three years. Income is capped at 80% of AMI: $75,600 for three people and $84,000 for a family of four in 2026. The home must be single-family in Lorain and fall under the HUD HOME homeownership value limit; ask the City for the current figure. Key rules:
You contribute up to 3% of the price, and at least $1,000.
Housing ratio no more than 30% and total debt no more than 43%.
A 30-year fixed mortgage.
A City NSPIRE inspection of the home.
A HUD-approved education certificate before you sign a purchase agreement.
That last rule catches buyers: take the class first, then make offers. The inspection and value limit also mean the City reviews the house itself, not just your file.
Using it with Ohio Heroes and other help
The City materials do not say whether this loan combines with Ohio Heroes or OHFA down payment assistance, so a participating lender confirms whether they combine. Ohio Heroes’ income limits in Lorain County are higher than the 80% AMI cap here, so some buyers will fit only the state program. The $1,000 minimum contribution is higher than many Ohio city programs require. Our DPA mistakes guide covers ordering errors like signing a contract before education.
How do you apply?
Download the 2026 brochure and application from the City’s page and contact Nicara Garcia at 440-204-2512 to confirm funds. Finish HUD-approved education, get pre-approved for a 30-year fixed loan within the 30%/43% ratios, then make offers on single-family homes in Lorain. The City schedules its inspection before closing. You can also check your eligibility.
Based on the program's official page as of November 2026. Money and rules shift, so confirm terms with the program or a participating lender. Ohio Down Payment Assistance has no affiliation with this program.
Signed up.
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