The Ohio Housing Finance Agency (OHFA) provides:
Audio Lesson
Duration: 2:29
Question & Answer
Review the question and all answer choices
Title insurance
Title insurance is provided by private insurance companies, not government housing agencies. OHFA does not insure property titles against defects or claims.
Affordable mortgage programs
Property appraisals
Property appraisals are conducted by licensed appraisers working for lenders or appraisal companies, not by state housing finance agencies.
Real estate licenses
Real estate licenses are issued by state real estate commissions, not housing finance agencies. These are separate regulatory bodies with distinct functions.
Why is this correct?
OHFA's primary mission is to provide affordable housing opportunities for Ohio residents through various mortgage programs, down payment assistance, and other housing initiatives. This directly aligns with option B, making it the correct answer.
Deep Analysis
AI-powered in-depth explanation of this concept
This question tests your knowledge of government housing agencies and their roles in real estate. Understanding what these agencies do is crucial for real estate professionals who need to guide clients to appropriate financing options. The question specifically targets the Ohio Housing Finance Agency (OHFA), which is a state-level agency that provides housing assistance programs. The correct answer identifies OHFA's primary function as providing affordable mortgage programs, which aligns with typical state housing finance agencies' missions. When analyzing this question, it's important to recognize that government housing agencies generally don't provide title insurance, appraisals, or licenses—these are typically handled by private companies or other government entities. The question's difficulty level is easy because it tests basic knowledge of what a state housing finance agency does, but students may struggle if they confuse the functions of different real estate-related government agencies.
Knowledge Background
Essential context and foundational knowledge
State housing finance agencies like OHFA were established to address affordable housing needs and promote homeownership. These agencies typically offer below-market interest rate mortgages, down payment assistance programs, and other housing initiatives to qualified buyers. They often work with participating lenders to provide these specialized financing options. In Ohio, OHFA programs target first-time homebuyers and low-to-moderate income households, helping to expand homeownership opportunities while maintaining responsible lending practices. Understanding these agencies helps real estate professionals connect clients with valuable resources that might make homeownership more accessible.
Think of OHFA as a 'bridge builder' for homebuyers who need help crossing the financial gap to homeownership.
When encountering questions about state housing agencies, remember they're primarily 'bridge builders' connecting qualified buyers with affordable financing options.
For questions about state housing finance agencies, remember they primarily provide mortgage assistance and down payment programs, not licensing, appraisal, or insurance services.
Real World Application
How this concept applies in actual real estate practice
A first-time homebuyer in Columbus is interested in purchasing a home but has limited savings for a down payment. Their real estate agent recognizes the client qualifies for OHFA programs and explains how they can access down payment assistance through OHFA's grant program. The agent helps the buyer connect with OHFA-approved lenders who can offer special mortgage rates. This assistance makes the home purchase possible, demonstrating how understanding OHFA programs enables agents to serve clients who might otherwise be unable to achieve homeownership.
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