Ohio Homebuyer PlusIndependent program guide

A program of the Ohio Treasurer of State

Ohio Homebuyer Plus

A State of Ohio savings program for people buying a home in Ohio. You open a dedicated account at a participating bank or credit union, it earns an enhanced interest rate funded by a state deposit, and contributions may be deductible from your Ohio income tax.

Independent guide, not affiliated with the State of Ohio. See sources.

Participating banks & credit unions

Every institution on the Ohio Treasurer's official directory, as published {{DIRECTORY_DATE}}. Rates and incentives come from each institution's own public Homebuyer Plus page. Where an institution does not post a rate online, the row says so — it means you have to call, not that they pay nothing.

Verify before you open. These are variable-rate accounts and institutions may change the rate and APY at any time. Several disclosures on this page carry effective dates going back to 2024, and a few institutions' own pages contradict themselves. Treat the table as a shortlist-builder, then confirm the current rate directly.

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An asterisk on the Treasurer's directory means "not accepting new applications"; those institutions are labelled Closed to new applications here and hidden by default. Two similarly named pairs are genuinely different institutions: Kemba Credit Union (Cincinnati) vs KEMBA Financial Credit Union (Columbus), and Farmers & Merchants State Bank / F&M Bank vs Farmers & Merchants Bank.

What the program actually is

Ohio Homebuyer Plus was created by House Bill 33 of the 135th General Assembly and is run by the Ohio Treasurer's office in collaboration with the Governor's office. Formally it is a "homeownership savings linked deposit program." In practice it is a special-purpose savings account, opened at a regular Ohio bank or credit union, that carries two advantages an ordinary account does not:

An enhanced interest rate

The state deposits its own funds at your institution and accepts a below-market return on them. The institution takes that saved interest expense and adds it to what it pays you. You get a rate no ordinary saver could negotiate.

An Ohio income tax deduction

Contributions — yours or those of certain family members — can be deducted when computing Ohio adjusted gross income, up to $5,000 per contributor per year and $25,000 over the account's life.

You never deal with the Treasurer directly. You apply through a participating bank or credit union. They submit your eligibility information to the Treasurer's office, which approves or denies it. The account itself is an obligation of the institution, insured by the FDIC or NCUA like any other deposit — the state has no ownership interest in your money.

Who qualifies

You must

  • Be a resident of Ohio at the time you apply, and stay one
  • Be at least 18 years old
  • Have your primary residence in Ohio — not a P.O. Box or military box
  • Have a valid Social Security Number or ITIN
  • Use the proceeds only toward a primary residence purchased in Ohio
  • Read and attest to the Participation Statement

Things that are not requirements

  • No income limit. Ohioans at any income level may open an account.
  • You need not be a first-time buyer. Existing homeowners moving to a new primary residence qualify.
  • You need not live near a branch. It is a statewide program; ask about opening online or by phone.
  • No minimum annual contribution. Though a dormant account can be terminated — see below.

Accounts are individual only. Joint ownership is not allowed, and neither are LLCs, trusts, guardians, or co-signers. A married couple can each open and fund their own account and pool both at closing. You may hold only one Homebuyer Plus account at a time.

Residency is based on domicile. A non-U.S. citizen authorized to be in the U.S. permanently who has taken steps to establish domicile in Ohio can be considered an Ohio resident; someone here temporarily for college or a work assignment cannot.

The account rules that bite

$500 minimum balance

Accounts opened on or after April 1, 2025 must be funded with and maintain at least $500. Accounts opened on or before March 31, 2025 are grandfathered at $100.

$100,000 contribution cap

Once contributions reach $100,000, neither you nor a third party may add more — but interest keeps accruing past the cap.

Five years, hard stop

Funds must be used for an eligible home purchase within five consecutive years of your first account approval date. Transferring banks does not restart the clock.

12 months once you hit the cap

If you opened on or after April 1, 2025 and reach $100,000, you have only 12 calendar months to buy. Pre-April-2025 accounts keep the full five years instead.

No fees to open or maintain

There are no account maintenance fees. Transaction fees may still apply — for instance, wiring funds to a title company at closing.

You can switch banks

Accounts may be transferred between participating institutions at your discretion. You close the old one and reapply at the new one; the balance should move within 90 days.

Dormancy can end it

The Treasurer may terminate participation if no contributions are made for three years and the balance is under $500. You get a mailed notice and 90 days to respond.

Moving out of state ends it

Leave Ohio and you are no longer eligible: the account closes and enhanced interest stops. Funds not used for an eligible purchase may create Ohio tax reporting obligations.

Life happens, and the program accounts for it. If circumstances outside your control and unforeseen at account opening intervene — an employer forcing an out-of-state relocation, sudden job loss, serious illness and the medical bills that follow — you may keep all the money saved and the interest accrued.

The Ohio tax deduction

Under ORC 5747.85, certain Ohio taxpayers may deduct contributions to a Homebuyer Plus account — and the interest earned on it — when computing Ohio adjusted gross income.

$5,000Per contributor, per year
$10,000Per married couple, per year
$25,000Lifetime cap, per contributor per account

Who can claim it

This is the underused part of the program. The deduction may be taken by the saver or by the saver's parent, spouse, sibling, stepparent, or grandparent. A grandparent who contributes $5,000 toward a grandchild's down payment takes their own deduction for it.

  • There is no carryforward for contributions above the $5,000 annual limit.
  • Third-party contributors do not receive a year-end statement — keep your own records.
  • Contributions by a third party may count as a completed gift and may qualify for the annual gift tax exclusion.
  • Employer contributions are allowed but may be a taxable fringe benefit reported on your W-2.

No 1099 is issued for withdrawals. Neither the Treasurer nor your institution generates federal or state tax reporting when you take money out. You are responsible for retaining documentation and reporting any ineligible withdrawal on your Ohio return. The Ohio Department of Taxation does receive account usage data.

This page is not tax advice. Consult a tax professional about your own situation.

What you can — and can't — spend it on

Eligible

  • Down payment on a primary residence in Ohio
  • Closing costs
  • Other eligible expenses defined in ORC 135.70 and 5747.85
  • A pre-existing home, or a newly built one that is ready to occupy
  • Homesteads and manufactured/mobile homes taxed as real property

Ineligible

  • A vacation home or income/rental property
  • Vacant land you intend to build on, or construction loan payments
  • Moving expenses, home improvements, contractor/plumber/electrician/painting bills
  • Furniture, appliances, household goods
  • Living expenses, utility bills, groceries
  • Using the account as loan collateral

The home must be classified as residential real property and qualify for the owner-occupied property tax reduction under ORC 323.152(B). If a purchase falls through after you have already withdrawn, you may re-contribute the full amount without penalty — but it must be back in the account within 90 days of the first withdrawal, with documentation.

Knowingly making a false statement to obtain or use an account is the offense of falsification under ORC 2921.13.

Getting started, in three steps

  1. 1

    Read the Participation Statement

    You will be required to attest that you have read it. It is the binding document — worth actually reading before you sign.

    Participation Statement (PDF) ↗
  2. 2

    Shop the rates

    Rates differ enormously between institutions, and tier structures matter more than headline numbers. Compare before you commit — and remember you can transfer later.

    Compare institutions ↑
  3. 3

    Apply at your chosen institution

    Contact them directly to open the account. They handle the eligibility submission to the Treasurer's office on your behalf.

    Questions: CDprograms@tos.ohio.gov

Questions people actually ask

Do I have to be a first-time homebuyer?

No. There is no first-time buyer requirement. Existing homeowners buying a new primary residence in Ohio are eligible, and several institutions advertise the program specifically to repeat buyers.

Is there an income limit?

No. Ohioans at any income level who meet the eligibility criteria may open an account.

Can my spouse and I open a joint account?

No — accounts are individually owned. But two legally married individuals are each eligible to open and fund their own account, and to use funds from both toward the same home purchase. In effect a couple can shelter up to $200,000 in contributions across two accounts.

What if there's no participating bank near me?

It is a statewide program. The Treasurer's guidance is explicit: contact any participating institution and ask about opening online or over the phone.

Can I move my account if another bank offers a better rate?

Yes. Accounts may be transferred between participating institutions at your discretion. You close the account at the old institution and reapply at the new one; the balance should transfer within 90 days. Note that your five-year clock runs from your earliest account opening date — transferring does not reset it.

Can I use the money to build a house?

Only if the home is ready to be occupied. You may buy a pre-existing home or a newly built one that is complete. You may not use the funds to buy vacant land to build on, or to make construction loan payments — in both cases there is no home ready to occupy.

What happens if I never buy a home?

At the end of the five years (or the 12-month window if you hit the balance cap on a post-April-2025 account), the institution closes the account and either returns the funds or moves them into an ordinary account in your name. The closure may be reported to the Ohio Department of Taxation, and funds not used for eligible withdrawals may create Ohio tax reporting requirements and possible liabilities.

Is my money insured?

Yes. Balances are an obligation of the institution and are deposit insured — FDIC for banks, NCUA or private share insurance for credit unions — generally up to $250,000 per depositor per institution in the same ownership capacity. The Treasurer's office holds no ownership interest in your account.

Why does one bank advertise 12% and another 3.30%?

Two reasons. First, half the formula — the Current Savings Rate — is set by each institution independently, so they compete. Second, tiering: a headline "up to 12.00% APY" may apply only to the first $2,500, with the rest of your balance earning around 3%. An institution paying a flat 5% on the whole balance can easily beat a flashier tiered offer once you have real money saved. Read the tier tables in the comparison above.

Can my parents or grandparents contribute?

Yes, and it is one of the better-kept features of the program. A parent, spouse, sibling, stepparent, or grandparent may contribute and claim the Ohio deduction on their own return, up to $5,000 per year each. They will not get a year-end statement, so they need to keep their own records.

Sources

Official program materials

Statute

Rate data

Rates, tier tables, effective dates and incentives were read from each institution's own public Homebuyer Plus page; each row links to its source. Institutions that render rates via JavaScript-loaded widgets or publish nothing online are marked "Not published — call."

Program questions go to the Treasurer's office: CDprograms@tos.ohio.gov · 1-800-228-1102