Virginia

Virginia Housing Conventional programs

Virginia Housing offers two 30-year fixed-rate programs—the Virginia Housing Conventional and the Virginia Housing Conventional No Mortgage Insurance. The latter exempts borrowers from paying mortgage insurance. Both programs assist with a 97% financing option and can be clubbed with programs that give grants or tax credits.

Requirements for applicants:

• A down payment assistance of up to 3%
• For the first, you need at least a 640 credit score, and a 660 for the latter.
• A debt-to-income ratio of 45%.
• Sellers can concede up to a 3% discount.
• Completing homeownership education is necessary, as is meeting Housing's income caps.

Property prerequisites:

• The abode must be a solitary single-family residence or approved condo in Virginia.
• Manufactured homes aren't eligible.
• There's no top price or minimum acreage—except when joining a program combining assistance with credits.

Virginia Housing Plus Second Mortgage

As a first-time homebuyer in Virginia, funding a down payment can seem impossible without assistance. Thankfully, there are programs to alleviate this challenge.

The Virginia Housing Plus Second Mortgage helps qualified purchasers avoid depleting savings at closing. Such down payment assistance programs in Virginia assist initial owners and those buying in designated 'Target Areas.'

To qualify for the second loan:

• Applicants must verify allocating 1 percent of the purchase price for closing fees or funds in escrow.
• Assistance available is between 3% and 5% of the purchase price.
• Incomes cannot exceed limits set by Virginia Housing.
• Completing homebuyer education is compulsory.

For property eligibility:

• The dwelling must meet underwriting for the primary loan.
• Location within Virginia borders.
• Maximum two acres, though some lenders may flex to ten acres in rare cases.
• The sales price cannot surpass Virginia Housing loan restrictions.

Virginia Housing Down Payment Assistance (DPA) Grant

Virginia Housing's Down Payment Assistance grant awards up to 1% of the purchase price to eligible first-time buyers or those in a Target Area. To receive such first-time home buyer programs in VA, the funds must be paired with a Virginia Housing conforming, no private mortgage insurance, or FHA first trust, and all criteria for that initial loan must be satisfied.

Virginia Housing Closing Cost Assistance (CCA) Grant

Virginia Housing's Closing Cost Assistance grant is a savior for first-timers or Target Area home buyers using a VA or USDA loan. At most 2% of the price, the money can fund closing fees, discount points, prepayments, and the VA funding charge or USDA guarantee payment.

Virginia Housing Granting Freedom program

Virginia Housing offers up to $8,000 in funding for military members to renovate their homes. The grant assists Virginia veterans or those in service living with a disability incurred on duty. Modifications such as ramps and wider entrances can be covered for owned homes or rented units.

Virginia Housing Loan Combo

Through the Virginia Housing Loan Combo, Virginia first-time home buyers can bundle a mortgage, down payment aid, and complimentary education into one. Financial guidance aids in navigating options for restoring housing accessibility.

RRHA homeownership initiative

The Richmond Redevelopment and Housing Authority plans to debut a new program in 2024. Geared towards public housing tenants and voucher recipients, preliminary terms suggest closing and down costs help, reduced interest, and relief on mortgage insurance for eligible purchasers locally. Outreach will clarify details as the rollout date nears.

FHA Loans

These loans, insured through the Federal Housing Administration, deliver more flexible fiscal criteria. With an FHA loan, securing finance is possible with merely 3.5 percent down and a credit rating as low as 580.

VA Loans

Meanwhile, VA loans are backed by the United States Department of Veterans Affairs and are meant for active-duty military personnel, veterans, and surviving spouses. They tend to have lower interest rates and don't require a down payment.

USDA Loans

USDA loans present another choice without an upfront payment. However, one must procure a home in a classified rural location and meet specific eligibility terms to be considered.

HomeReady and Home Possible Loans

These programs, offered through government-sponsored enterprises like Fannie Mae and Freddie Mac, cater to first-time buyers. They require a 3 percent down and have more adaptable earnings prerequisites, rendering homeownership more obtainable.