First Time Homebuyer Credits In Ohio
Ohio first-time homebuyers in 2025 can benefit from programs offered by the Ohio Housing Finance Agency, including the Mortgage Tax Credit program, which provides a federal tax credit of 20 to 40 percent of annual mortgage interest paid. The credit is available each year the home is the buyer's primary residence, and it can be combined with the deduction for remaining mortgage interest when itemizing on a federal return.
Ohio allows homeowners to deduct mortgage interest and real estate taxes on the state income tax return when itemizing, and the state's Homestead Exemption reduces the taxable value of a primary residence for qualifying seniors, disabled persons, and surviving spouses. Ohio also has a First-Time Homebuyer Savings Account program that allows residents to designate a savings account for home purchase costs and deduct contributions on the Ohio return.
Key documentation includes the OHFA Mortgage Tax Credit certificate, Form 1098, county property tax statements, and records of any contributions to a designated First-Time Homebuyer Savings Account. Buyers who received OHFA down payment assistance should review their loan agreement for any recapture or repayment provisions that could affect their tax situation in 2025.