CLEVELAND — With rising home prices and mortgage rates, many people looking to buy homes are having a hard time. 

What You Need To Know

  • Gov. Mike DeWine proposed the Ohio Homebuyers Plus program nearly a year ago

  • The program is designed to help people purchase homes in Ohio

  • Eight banks are participating in the program so far 
 

But starting this week, there’s a new program in place across the state that’s trying to make that process a little easier.

Gov. Mike DeWine introduced the Ohio Homebuyers Plus program in his State of the State address in January 2023.

 “We will create an Ohio Home Ownership Savings Account program with Treasurer of State Sprague to allow Ohioans to save for down payments and other qualified housing expenses with reduced state tax consequences,” DeWine said during the speech.

And now that program has become a reality.

“The future of the state of Ohio is dependent on getting families to come to our state and also stay here,” Treasurer Robert Sprague said.

Run by Sprague’s office, the program lets eligible Ohioans open enhanced savings accounts that earn higher interest rates, as long as they use the money for a down payment on a place to live.

“All you have to do is go to our website, www.ohiotreasurer.gov and look at the list of participating financial institutions. Walk through their door, or sign up online and open up one of these enhanced savings accounts,” Sprague said.

To be eligible for the program, you have to be at least 18 years old and live in Ohio.

But earning higher interest rates isn’t the only benefit.

“Not only will you get over two and a half percent interest rate, that’s in addition to whatever the local financial institution otherwise would give you on your savings, but you also get an income tax deduction from the state of Ohio,” Sprague said.

Sprague said the ultimate goal is to help people afford a home in Ohio, despite any challenges that inflation and high interest rates might create.

“Fact is I saw one statistic and study that said that you have to earn 50% in terms of income now than before COVID, before COVID hit, in order to be able to afford the same house. So I think it’s an uphill battle for new homebuyers, and I think this is a program that’s going to allow their savings to grow faster to be able to afford that home,” Sprague said.

Sprague said there are currently eight banks participating in the program, but he expects that list to grow as the program expands.