Closing on Assistance

Most* homeowners who receive financial assistance from Save the Dream Ohio will receive their assistance in the form of a zero-interest, non-amortizing, subordinate mortgage lien that is forgiven 20 percent each year for five years. This means that you are taking out a second or third mortgage on your property to finance your assistance; however, you will never make a payment, you will never pay any interest, and after five years, the loan will be forgiven and released. The assistance you receive is paid directly to your mortgage servicer.

*Homeowners participating in Transition Assistance receive their assistance in the form of a grant.

Selling or Refinancing My Home

If you sell or refinance your home before your five years is up, you may have to pay back any remaining portion of your loan if there are proceeds from the sale or refinance. For example, if you sell your home for $100,000 and you owe $80,000 on your first mortgage, $10,000 in closing costs, and have $10,000 remaining on your Save the Dream Ohio mortgage, then you would use the proceeds from the sale of your home to pay back the $10,000 loan after you have paid off your mortgage lender and all closing costs.

If, however, you owe $80,000 on your first mortgage and you sell your home for $80,000, then you would not be required to repay your Save the Dream Ohio mortgage because you do not have any proceeds from the sale of your home.

What to Expect at Closing

Before Save the Dream Ohio can send a payment to your mortgage servicer, you must attend a closing where you will sign a new note and a subordinate mortgage. A title agent from Associates Title will contact you to arrange the closing, which may be held at an Associates Title branch office or at another location.

Before your closing, you should talk to your housing counselor about the documents you will sign. If you have any questions, discuss them with your housing counselor before you go to your closing, because the title agent with Associates Title is not authorized to answer any questions about the Save the Dream Ohio program. If you schedule your closing and then do not sign your documents, you risk becoming ineligible for assistance. However, it is important that you always understand what you are signing before you enter an agreement, so talk to your counselor before your closing and also find out who you can contact if you have a question during your closing.

Additionally, you can read our Frequently Asked Questions and the Closing Fact Sheet to learn more. Below is a list of the documents you will be asked to sign and links to sample closing documents:

Closing on Assistance