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Opportunities for a 100% Financed Loan and No Money Down

If you think home ownership is out of your reach, there is an exceptional package of aid through VHDA. VHDA helps Virginians attain quality, affordable housing. They have a unique collection of loans and other programs that can’t be found elsewhere to help first-time and repeat homebuyers. There are household income limits associated with VHDA products (see vhda.com/LoanLimits).

Fixed Rate Loans

VHDA offers affordable 30-year fixed rate home loans. These loans are funded through Fannie Mae and government programs. There are two Fannie Mae loans available.

Fannie Mae HFA Preferred with Reduced Mortgage Insurance
• Available to first-time and repeat homeowners.
• 3% minimum down payment, 640 minimum credit score & a maximum 97% loan-to-value.
• Lowest conventional mortgage insurance payments.
• Loans up to $453,100.
• Borrowers who qualify may also be eligible for a VHDA Mortgage Credit Certificate (MCC).

Fannie Mae 97% No Mortgage Insurance
• Available to first-time and repeat homeowners.
• No mortgage insurance means lower monthly payments.
• 3% minimum down payment, 660 minimum credit score, 45% debt-to-income ratio, loan-to-value must be greater than 80% with a maximum of 97%.
• Loans up to $431,100. Borrowers who qualify may also be eligible for a VHDA MCC.

VHDA also offers several types of federal government loans. These loans are eligible for VHDA grants that reduce out of pocket costs for qualified borrowers. Additionally, borrowers who qualify may also be eligible for a VHDA MCC. The following federal government loans are included in the VHDA program.

FHA insured.
• 3.5% down (as low as 1% with VHDA’s Down Payment Assistance Grant).
• Credit scores may be as low as 620.

USDA (Rural Housing Service) guaranteed.
• 100% financing for eligible rural properties.
• Affordable monthly payments.
• Low mortgage insurance.

Veterans Administration (VA) guaranteed.
• 100% financing for eligible veterans.
• Credit scores can be as low as 620.

Other VHDA Programs

VHDA has a grant program called the Closing Cost Assistance Grant, which makes 100% financing even more affordable. The maximum grant is 2% of the purchase price and because it is a grant, you never have to pay it back. Grants funds can be applied to your closing costs and you may also qualify for a MCC. You must be a first-time homebuyer. The eligible VHDA mortgage must be locked prior to receiving grant funds. Note that this grant may strengthen the negotiation of VA and RHS contracts.

A VHDA Mortgage Credit Certificate (MCC) can save you thousands of dollars by reducing the amount of federal income tax you owe each year. The annual credit is equal to 20% of the annual mortgage interest you pay and there is a dollar for dollar credit toward your federal income tax liability. The MCC is effective for the life of the mortgage, as long as you live in the home. You must be a first time homebuyer and must be used as your principal residence.

The VHDA Plus Second Mortgage eliminates the down payment requirement for first-time homebuyers by pairing qualified VHDA first mortgage with a VHDA second mortgage to cover the down payment.

Your lender can help you determine which VHDA loan/grant combination is the best for you. They can also provide you with more details about all of the VHDA products.