Virginia Down Payment Assistance
Virginia, considered the "birthplace" of the United States, has moderate temperatures year round and multiple national parks and beautiful landscapes. However, rising real estate prices can make home ownership in Virginia difficult. Luckily, local and national programs exist that offer down payment assistance and grants to qualified applicants. The Virginia Department of Housing and Community Development and the Virginia Housing Development Authority are two organizations that offer such programs.
If you're thinking about purchasing a home in Virginia, you may have options to help with the down payment or closing costs. Read below to learn more about any program and see if it can help with your home purchase!
HOMEownership Down Payment and Closing Cost Assistance Program
This program is offered by the Virginia Department of Housing and Community Development.
In addition to being first-time homebuyers, applicants for this program must also be creditworthy, have an income at or under 80% of the area median income (which is also determined by location and household size), and complete homebuyer education and counseling.
Applicants must also put forth some amount from their own funds towards the home purchase, which varies depending on their income. Those with an income between 50% and 80% must put forth 1% of the sale price of the home, while those with an income lower than 50% must put forth $500.
Only the following property types are allowed: one-unit single family homes, two-unit homes as long as the borrower resides in one of the units, condominiums, townhomes, or manufactured homes. For manufactured homes, the house must have permanent utilities and be on owned or leased land.
VHDA Down Payment Assistance Grant
This Down Payment Assistance Grant is generously offered by the Virginia Housing Development Authority. Because this is a grant, it does not need to be paid back.
Between 2% and 2.5% of the purchase price of a house is given to qualified applicants that are utilizing an eligible mortgage program.
Only first-time homebuyers are eligible; however, an exception can be made for those purchasing in a specified target area.
Individuals cannot have a credit score lower than 620 if they’re utilizing an FHA loan, or 660 for a Fannie Mae No MI loan, or 640 for a Fannie Mae Reduced MI loan. Further, individuals cannot have a DTI higher than 45%. There are also specified household income limits that have to be met.
Only primary residences are applicable for this grant, and the individual must keep using the house as their primary residence for at least one year.
Finally, all individuals must complete homebuyer education (unless the house is in a target area location) and counseling.