The $1 million the city earmarked that year from American Rescue Plan Act money has been depleted. Instead, the program is now using $100,000 in Community Development Block Grant funds, which require some updated guidelines, Kettering City Manager Matt Greeson said.
The city was able to help 27 homebuyers in 2022 and 15 this year before ARPA funds ran out, Kettering Community Development Manager Angela Rahman said.
With fewer funds now, the city aims to help 10, she said.
“We’re just excited to continue to be able to offer this opportunity,” Rahman said. “For people who want to buy homes in Kettering, we recognize that affordable loans are hard to find and we hope that this can help as we continue to search for other funding sources.”
The average 30-year fixed rate mortgage was 7.44% as of Thursday, according to Freddiemac.com.
Kettering Mayor Peggy Lehner and others on city council have advocated for more funds for the program. Lehner said it has been “so successful and well received,” but lamented more money is not available.
The changes, Greeson said, include:
• Increasing the assistance from $8,000 to $10,000 per recipient with buyers paying 50% of the lenders required down payment.
• Providing funds for first-time homebuyers and other income eligible purchasers.
• Trimming the number of monthly bank statements required for applicants from six to two.I
Under previous guidelines, Kettering was able assist homebuyers making up to 120% of area median income. Now, the requirement is capped at 80% AMI, Rahman said.
“That part will be a little more restrictive,” she said. “The application process itself should be a little easier with the (fewer) documents we are requiring.”
About 64% of Kettering housing is owner-occupied, according to U.S. Census data. In October, the median listing home price in the city was $229,000, up 4.1% year over year, Realtor.com data shows.
First-time homebuyers will get priority, but the program operates on a first-come, first-serve basis, Rahman said.
More information on the program is available at ketteringoh.org/financial-assistance/ or by calling 937-296-3020.
Kettering’s homebuyer assistance program follows federal guidelines maximum income requirements. They include:
•One person, $49,850
•Two people, $57,000
•Three people, $64,100
•Four people, $71,200
•Five people, $76,900
•Six people, $82,600
•Seven people, $88,300
•Eight people, $94,000.
Source: City of Kettering.