Phone: (240) 670-5090       •       Fax : (443) 725-0531

Serving all of Maryland, Washington D.C. & Virginia
Email : jordanteam@firsthome.com       •       NMLS ID: 143670

12501 Prosperity Drive Suite 310, Silver Spring, MD 20904

Virginia Down Payment Assistance (VHDA)

We are pleased to offer several loan options through VHDA to qualified home buyers.  The VHDA loan program offers a variety of loan options including FHA, VA, USDA and Conventional loans.  In addition to these options, VHDA also offers a down payment assistance second mortgage option that can be used with the FHA program and a down payment assistance grant, which can be used in with the Conventional and FHA loan programs.  USDA and VA loans are already 100% financing loan options.

 

Program Specifics to Qualify:

  • Cannot have owned real estate in previous 3 years (3 years federal tax returns required).
  • 660 minimum credit score.
  • Home Buyer education required. Click here for the free online class.
  • 1 unit homes & primary residence only.
  • Borrowers cannot have a net worth exceeding 50% of the sales price of the dwelling financed.
  • Income limits & sales price limits per chart below

Each VHDA home loan has specialized benefits and features to better assist the Virginian homebuyer.  These loans are:

Conventional Fannie Mae HFA Preferred with Reduced Mortgage Insurance

Benefits:

  • Low 3% down payment required • Affordable monthly payment • As low as 1% down with VHDA DPA Grant • Could reduce federal taxes owed • Could help to reduce existing mortgage payment

Features:

  • 97% maximum financing • Lowest mortgage insurance requirements • Available for first-time and repeat buyers • Eligible for DPA Grant • Eligible for MCC • 660 minimum credit score

 

Conventional Fannie Mae 97% with No Mortgage Insurance

Benefits:

  • Low 3% down payment required • Affordable monthly payment • As low as 1% down with VHDA DPA Grant • Could reduce federal taxes owed • Could help to reduce existing mortgage payment

Features:

  • 97% maximum financing • No monthly mortgage insurance requirement • Available for first-time and repeat buyers • Eligible for DPA Grant • Eligible for MCC • 660 minimum credit score

 

FHA Plus

Benefits:

  • FHA-fixed first mortgage • 100% financing, no down payment cash needed with FHA Plus 2nd mortgage • Second mortgage 3.5% – 5.00% based on credit score • Low payments on second mortgage • Could reduce federal taxes owed

Features:

  • Low 30-year fixed interest rate • Second mortgage covers all required down payment • Credit scores 680 and greater can received additional funds for closing costs • Second mortgage for 30-year term • Eligible for MCC

 

FHA

Benefits:

  • FHA insured • Low down payment • As low as 1% down with VHDA DPA Grant • Could reduce federal taxes owed

Features:

  • 3.5% down payment • VHDA DPA Grant Eligible • Eligible for MCC

 

VA (Veterans Administration)

Benefits:

  • VA guaranteed • $0 down payment for eligible veterans • Could reduce federal taxes owed

Features:

  • 100% financing • Eligible for MCC

 

USDA (Rural Housing Service)

Benefits:

  • USDA guaranteed • $0 required for eligible rural properties • Lower monthly payments • Could reduce federal taxes owed

Features:

  • 100% financing • Low mortgage insurance • Eligible for MCC

 

 

How can you save money?

VHDA loans may be combined with the Down Payment Assistance Grant (DPA) and/or the Mortgage Credit Certificate (MCC) for maximum savings.

 

Down Payment Assistance Grant (DPA)

This grant contributes to the down payment for eligible first-time homebuyers, and no repayment is required.

 

Requirements:

  • Property must be in the state of Virginia
  • Conventional buyers may receive 2% of purchase price towards down payment
  • FHA buyers may receive up to 2.5% of purchase price towards down payment
  • Maximum purchase price is $500,000

Mortgage Credit Certificate (MCC)

Federal tax credit that could save eligible first-time homebuyers thousands of dollars by reducing the amount of federal income tax they owe (please consult a tax advisor).

 

Requirements:

  • The credit is equal to 20% of the annual mortgage interest paid
  • Remaining 80% may still be taken as a tax deduction
  • MCC effective for life of a mortgage, as long as homebuyer lives in the home
  • May be combined with down payment assistance
  • Income and sales price limits apply
  • Use home as principal residence

 

Certain income limits and loan restrictions could be waived in areas of economic opportunity.  These are federally targeted areas.  Click here for the property lookup tool.

Eligible applicants may also apply for the Mortgage Credit Certificate (MCC) to take advantage of even greater annual savings at tax time.

For more information about VHDA, Click Here.

Feel free to call us with questions at 240-670-5090, email us at jordanteam@firsthome.com or Pre-qualify Here.