Funding Resources
Even with the cost savings tools provided in this guidebook, new construction is expensive and often requires a combination of funding sources to get projects off the ground. For houses that moderate-income families can afford, developers often aggregate capital from private investors, state and local government sources, and philanthropic support. The state and federal governments offer funding or attractive financing through programs that incent the creation of attainably priced housing units.
Information on funding and financing programs for developers is below.
Federal Resources
Federal Housing Administration (FHA) Loans
The Federal Housing Administration offers federally backed acquisition and construction loans for residential units. Acquisition loans can be used to purchase up to four units at one time and construction loans can be used to build or rehab a home with as little as a 3.5% down payment.
Low Income Housing Tax Credits (LIHTC)
Low Income Housing Tax Credits (LIHTCs) are the most widely used federal funding source for affordable housing, currently financing about 90% of all new affordable housing development. They help adjust the capital costs of development so that extremely low and very low rents from tenants still satisfy the developers' debt.
In Ohio, tax credits are awarded to the Ohio Housing Finance Agency (OFHA) who allocates the credits to projects through a competitive process. In return for the capital, there are strict affordability requirements developers must follow for 30 years. Units are restricted to those earning no more than 60% AMI and rent may not exceed 30% of the qualifying income.
Federal Home Loan Bank of Cincinnati’s Affordable Housing Program (AHP)
The Federal Home Loan Bank (FHLB) system was created in 1932 with the goal of lowering the cost of home ownership through government sponsored banks. Ohio is served by the Federal Home Loan Bank of Cincinnati.
The FHLB’s Affordable Housing Program (AHP) was introduced in 1990 and provides funding for rental and owner-occupied housing. Eligible uses include the purchase, construction, or rehab of owner-occupied units for those making up to 80% of the area median income. Rental housing is also eligible if at least 20% of the units are affordable and occupied by those making up to 50% of the area median income. The program provides funding for up to $60,000 per unit.
In 2024, the Federal Home Loan Bank of Cincinnati awarded over $49.5 million for the creation of 2,743 units of affordable housing through the Affordable Housing Program.
Learn more here.
Federal Home Loan Bank of Pittsburgh’s Affordable Housing Program (AHP)
The Affordable Housing Program (AHP) provides grants and subsidized loans for the acquisition, construction or rehabilitation of affordable housing for households with incomes at or below 80% of the area median income. Housing developers partner with FHLBank Pittsburgh members to apply for AHP funding, which is offered through one competitive funding round each year. Grants are awarded to the highest scoring projects.
AHP grants and loans can be used for:
Single- and multi-family housing
New construction and rehabilitation
Rental and owner-occupied homes
Scattered-site housing development
Transitional and single-room-occupancy housing
Learn more here.
State and Local Resources
Single Family Tax Credit
The Single-Family Tax Credit program is intended to help Ohio’s communities increase their inventory of affordably priced single-family housing. Funds are allocated by the Ohio Housing Finance Agency (OHFA) in monthly rounds. The 2025 schedule of application periods at the time of writing is included below. These tax credits are used to help cover the difference in development costs of a project and the aggregate appraised market value of all dwellings within the project.
There must be a minimum of five single-family dwellings per application, which may either be contiguous or scattered site developments and may be used for both new builds and rehabs. Additional information on application requirements can be found here.
Affordability Requirements: Qualified buyers may earn up to 120% of the area median income and the sale prices of houses using these tax credits must be no more than 30% of the buyer’s monthly income. Properties are required to remain affordable for 10 years following the initial sale.
CDFI Emerging Developer Programs
One challenge that many legacy cities face is a lack of developers willing to build modest-sized units on the small, infill lots available. Many home builders today often prefer large sites to achieve efficiency of scale. The development industry is complex and can be difficult for beginners to enter, which has prompted community development financial institutions (CDFIs) around the state to create programs to address this issue.
Emerging Developer Training programs offer skills training to aspiring local developers in the form of technical assistance, mentoring, and capital. Examples of such programs can be found in Cleveland, Summit County, and Franklin County. These programs are a valuable resource to communities looking to grow their ecosystem of local developers and expand the region’s capacity to build. Eligible participants should take advantage of all these programs have to offer.
Many CDFIs also provide competitive and risk-tolerant financing for housing projects in under served communities.
Learn more about Emerging Developer Trainings here.
Welcome Home Ohio
The Welcome Home Ohio (WHO) Program provides funds for the creation of owner-occupied housing units across the state. It has three components: Purchasing, Rehab/Construction, and Tax Credits.
Purchasing: Grant funds are awarded to cover the cost of purchasing a qualifying residential property. The property must contain an existing residential structure, have at least 1,000 square feet of habitable space, and can be a foreclosure or traditional sale. Eligible applicants are land banks, land reutilization corporations, and electing subdivisions .
Rehab/Construction: Grant funds are available to cover the cost of rehabilitation or construction of a qualifying residential property. Eligible applicants are land banks, land reutilization corporations, and electing subdivisions.
Tax Credit: A tax credit is issued to the individual buyer once the residential property has been sold. The property must be owner occupied and have at least 1,000 square feet of habitable space. It can be a single family, duplex, triplex, fourplex, townhouse, row house, condo, or modular home. Eligible applicants are land banks, land reutilization corporations, electing subdivisions, and eligible developers.
Affordability Requirement. In order to receive the tax credit, the qualifying buyer must earn 80% AMI or less and be the primary occupant for at least five years. There will be a 20-year deed restriction requiring that future purchasers be at 80% AMI or below at time of sale.
Ohio Low Income Housing Tax Credit
The Ohio Low Income Housing Tax Credit (LIHTC) Program is a federal initiative administered by the Ohio Housing Finance Agency (OHFA) to encourage the development and preservation of affordable rental housing for low- to moderate-income households.
Through this program, developers of qualifying rental housing projects can apply for tax credits that provide a dollar-for-dollar reduction in federal tax liability. These tax credits are typically sold to private investors, generating equity to finance housing construction or rehabilitation. The program focuses on creating sustainable, quality housing while addressing the state's housing needs, including prioritizing projects that serve vulnerable populations or promote community revitalization. Eligibility and project selection are guided by OHFA’s Qualified Allocation Plan (QAP), which ensures that funds are distributed in alignment with state and federal priorities.
Learn more about the Ohio Low-Income Housing Tax Credit Program here.
Lenders
The following list of lenders have expressed support or interest in the goal of increasing housing production in Ohio through housing patterns, zoning updates, and/or pre-reviewed plans programs.
Ohio REALTORS ™ and GOPC have not vetted these lenders. This list, in no way, indicates endorsement.
Ohio REALTORS™ and GOPC are not periodically reviewing this list to confirm the information is current.
Please contact us if there is obsolete information.
Name:
Dawn Locigno
Jessica Rome
Bank:
First National Bank
New American Funding
Phone:
(440) 623-3050
(740) 630-4235
Product:
Consumer mortgages
Consumer mortgages