Ohio Homebuyer Plus is a new initiative designed to make homeownership more achievable for residents of Ohio. Introduced by the Ohio Treasurer's office in collaboration with Governor Mike DeWine's administration, Ohio Homebuyer Plus leverages the financial strength of the state to provide specialized, tax-advantaged savings accounts for aspiring homebuyers. Basically, the account helps your money grow faster so you can save more money for the purchase of a home. 

These accounts offer above-market interest rates and potential Ohio state income tax deductions, making them a potentially smart choice for someone looking to save for a down payment or closing costs on a home purchase. 

So, how does it work? Let's break it down:

Eligibility Requirements: To qualify for an Ohio Homebuyer Plus account, you must:

• Be a resident of Ohio
• Be at least 18 years old
• Have a primary residence in Ohio
• Use the account proceeds solely for the down payment or closing costs of a home purchase in Ohio

Account Details: Here are some important details about Ohio Homebuyer Plus accounts:

• Must be used within five years
• Maintain a minimum balance of $100
• Cannot exceed a maximum balance of $100,000

Additionally, prospective homebuyers will work with participating banks or credit unions to apply for their Ohio Homebuyer Plus savings account. If you meet all eligibility criteria, your application will be approved, and the Ohio Treasurer's office will make a deposit at a below-market rate with the financial institution of your choice. The bank or credit union then uses the interest generated by the Ohio Treasurer's deposit to provide you with an enhanced interest rate on your savings account.

Interest Rates and Tax Benefits: One of the most appealing features of Ohio Homebuyer Plus is the enhanced interest rate it offers. Currently set at 2.57%, this Net Premium Interest Rate ensures that your savings grow faster than with traditional savings accounts. The interest rate is updated on a quarterly basis. 

Additionally, contributions made by you or certain family members may also be tax-deductible from your Ohio income tax, providing even more incentives to save for your dream home.

How to Participate: If you represent a financial institution, you should email CDprograms@tos.ohio.gov to obtain more information.

If you're ready to take the first step towards homeownership with Ohio Homebuyer Plus, simply reach out to a participating financial institution in Ohio. They'll guide you through the application process and help you open your account. The list of participating financial institutions as of June 10, 2024 can be found here.