|
The Ohio Housing Finance Agency or OHFA, There’s Really No
Choice
By Alvin Thomas
Real Estate Columnist
I’ll be the first to admit, I am prone to digress on
occasion. Although, when I write this column, I normally
stay on point for at least the first few paragraphs before I
climb on my worn, dilapidated soapbox and stray off subject
just long enough to spout my frustration about some
annoyance of mine.
Today, however, I’m going to break completely from my norm.
Well, almost completely. I’m still going to digress, I’m
just going to start it a lot sooner.
As the headline suggests, this piece is eventually going to
provide some helpful information about the services offered
by The Ohio Housing Finance Agency (OHFA). However, before
I plunge into the merits of this fine organization
and the services it provides to homebuyers, I first need to
address a pet peeve of mine, which also happens to be one of
the few flaws of OHFA.
That’s it, OHFA! My irritation isn’t with the organization
itself, just the abbreviation of its name. This acronym and
many others are the crux of my grievance. I’m fed up with
acronyms – all acronyms!
Acronyms rarely give any hint as to the nature or true
identity of the company or agency they represent, and they
have absolutely no attraction – no sex appeal! In
fact, some acronyms are so clumsily assembled and anonymous
that they become almost mysterious. Ok, that may all be a
bit overstated, but I’m trying to make a point.
After all, does OHFA excite anyone? The full name of the
Ohio Housing Finance Agency at least suggest that it maybe
of some interest to homebuyers. It’s obvious which version
is faster to write and requires the least amount of type.
But which one is easiest for most people to comprehend: Ohio
Housing Finance Agency or OHFA? Most importantly, which one
would have a better chance attracting an anxious first-time
homebuyer’s attention?
I have digressed long enough. I just want to make one more
point about acronyms, and my final point is directly related
to this column’s subject. To the real estate novice, which
all first-time homebuyers are, the acronym OHFA completely
masks the valuable services this major player in today’s
real estate arena has made available to Ohio residents.
Outside of the Ohio housing industry’s in-the-know crowd,
OHFA is a relatively obscure agency. OHFA's programs and
services have helped more than 110,000 households achieve
homeownership by providing affordable mortgage products and
homeownership education since 1983.
Believe it or not, even though today’s housing crisis has
caused tough changes in the guidelines of conventional
mortgage loan products, many loan officers are still shying
away from the unconventional, odd sounding programs such as
OHFA that even sounds daunting and complicated. Today’s
environment should provide enough motivation to cause even
the most timid LO (even mortgage loan officers are referred
to by acronyms) to step out of his comfort zone.
OHFA offers affordable housing opportunities. The First-Time
Homebuyer program offers low, competitive mortgage rates to
homebuyers through conventional loans as well as FHA, VA and
other government loans. OHFA partners with lenders
throughout the state to make mortgage loans more attainable.
Each of these 30-year, fixed-rate loans is available to
consumers based on their household income. The program
offers down payment assistance of a grant in an amount equal
to three percent of the purchase price of the home.
Homebuyers who use OHFA’s loan products are limited by
established income limits which can be as high as $84,140 in
Lucas County depending on family size and property location.
The highest income limits are allowed in targeted areas.
OHFA defines a targeted area as an economically distressed
area as designated by the U.S. Department of Housing and
Urban Development (unfortunately, better known by the
acronym HUD). Most contain both targeted and non-targeted
areas. The single family OHFA loan limit in Lucas County is
$289,705 in a targeted area and $237,031 in a non-targeted
area.
Also, first-time homebuyers who are active military
personnel or military veterans, firefighters or emergency
medical technicians-paramedics, healthcare workers, police
officers or teachers can receive a 30-year fixed-rate
mortgage at a quarter of a percent less than OHFA’s rate for
the First-Time Homebuyer program. According to OHFA, since
the Ohio Heroes program began in March, more than 400
Ohioans have used it to purchase a home.
Unfortunately, OHFA is not alone. The real estate industry
is flooded with agencies, products and even guidelines known
only by confusing acronyms, which in many situations leave
the layperson clueless. The occasional homebuyer probably
doesn’t readily recognize or appreciate the following list
of mortgage related acronyms FHA,GFI, PMI, CDC, LTV, HUD, or
VA not to mention FannieMae or FreddieMac just to name a few.
I understand standard grammatical rules allow for these
abbreviations, but do they help or hinder their intended
clients they exist to serve.
Alvin Thomas is a mortgage loan officer with over 20 years
of banking and mortgage lending experience. He can be
reached at:
alvin.thomas@noic.com or (419) 885-8300 ext. 150..
|
