Utah

Utah Housing FirstHome Loan

The Utah Housing First Time Buyer Program, known as FirstHome Loan, typically has the lowest interest rate and is geared towards first-time homebuyers with a credit score of 660 or higher and their income and purchase price are below the posted limits.

Highlights:

• • Designed for first-time buyers, including eligible single parents and veterans.
  • Low-interest rates to keep monthly mortgage payments affordable.
  • DPA provided in the form of a 30-year fixed-rate second loan.
  • Up to 6% of the first mortgage loan as down payment assistance.
  • No requirement for borrowers to participate in homebuyer education courses.

Eligibility:

• • First-time homebuyer, exceptions for Single Parents and Veterans.
  • Minimum credit score of 660.
  • Maximum debt-to-income (DTI) ratio based on FHA or VA loan requirements
  • Cannot exceed the Utah Housing Income and Purchase Price Limits.

Benefits:

• • Lower interest rates for eligible first-time homebuyers.
  • May be combined with a Utah Housing down payment assistance second mortgage
  • Down payment and closing cost assistance available (up to 6% of the First Loan amount).
  • If DPA is not utilized, a rate reduction may be applied at the time of interest rate lock request (based on then-prevailing market conditions).

Requirements:

• • Must meet eligibility requirements
  • Meet eligibility requirements of the chosen first mortgage (FHA/VA Loans)
  • Compliance with Utah Housing income limits.
  • Property must be located in Utah
  • Single-Family, Condominiums, and Planned Unit Development (PUD).
  • One acre or less (or five acres or less in a rural area).
  • Homebuyer education is recommended but not mandatory.
  • Restrictions on renting any portion of the home during the mortgage term.

How to Apply:

• • Contact a Utah Housing Participating Lender to initiate the loan application process. A loan officer is the best resource for questions and to qualify you for Loan.
  • Express your interest in a Utah Housing Loan when contacting the lender.

Utah Housing Home Again Loan

The “HomeAgain” mortgage program caters to homebuyers with a credit score of 660 or higher, accommodating those who have previously owned a home or first-time homebuyers ineligible for “FirstHome”. This program features no purchase price limit but sets annual income limits based on household income.

Highlights:

• • Open to both repeat homeowners and first-time buyers.
  • No purchase price limit.
  • Low fixed interest rates.
  • Assistance with the down payment.

Eligibility:

• • Minimum credit score of 660.
  • Maximum debt-to-income (DTI) ratio based on FHA or VA loan requirements; co- signer’s DTI ratio should not exceed 45%.
  • Must meet Utah Housing income limits.
  • Owner-occupied single-family home, manufactured home, or FHA-approved condominium or planned unit development (PUD), owner-occupied duplex allowed
  • No acreage limits

Benefits:

• • Access to low fixed interest rates.
  • Down payment and closing cost assistance available (up to 6% of the First Loan amount).
  • Homebuyer education courses are not mandatory.
  • The program provides flexibility for both repeat homeowners and first-time buyers.
  • No purchase price limits, making homeownership more accessible.

Requirements:

• • Minimum credit score of 660.
  • Compliance with Utah Housing income limits.
  • Property must meet specified criteria.

How to Apply:

• • Interested borrowers should contact a Utah Housing Participating Lender.
  • The lender will assist in determining eligibility and potential down payment assistance.
  • Confirm qualification based on the program’s requirements.
  • Express your interest in the Home Again Loan when inquiring with the lender.

Utah Housing Score Loan

The “Score” mortgage program is tailored for homebuyers with a credit score of 620 or higher. This initiative provides assistance to homebuyers who have overcome past credit challenges, helping them achieve homeownership. The program is subject to a purchase price limit and annual income limits based on household income.

Highlights:

• • Designed for homebuyers with a credit score of 620 or higher.
  • Aimed at individuals who have overcome previous credit challenges.
  • Available for both first-time and repeat buyers with low or moderate income.

Eligibility:

• • Minimum credit score of 620.
  • Completion of a homebuyer education course.
  • Compliance with Utah Housing income limits.
  • Owner-occupied single-family home.
  • Adherence to Utah Housing purchase price limits.
  • Property cannot be rented, except for seller rent-back, not exceeding 60 days.
  • Compliance with FHA, VA, or Conventional loan requirements.

Benefits:

• • Access to homeownership for individuals with a history of credit challenges.
  • Down payment and closing cost assistance available (up to 4% of the First Loan amount).
  • No acreage limitation by Utah Housing.

Requirements:

• • Compliance with FHA, VA, or Conventional loan requirements.
  • Residence must be occupied by the borrower within 60 days of closing.
  • No outstanding Utah Housing Loans at the time the new Loan is purchased.
  • Completion of a homebuyer education course, regardless of previous homeownership.
  • Borrower cannot own any other property at the time of closing.

How to Apply:

• • Contact a Utah Housing Participating Lender.
  • The lender will assess eligibility and potential down payment assistance.
  • Complete the required homebuyer education course.
  • Fulfill all necessary documentation and comply with program requirements.
  • Express your interest in the Score Loan during the application process.

First-time Homebuyers Assistance Program (New Construction)

Created by the Utah Legislature in 2023, the First-time Homebuyer Assistance Program provides financial aid toward the purchase of a newly constructed home.

Highlights:

• • Financial aid program for first-time homebuyers.
  • Focuses on newly constructed homes.
  • 0% interest, no-monthly-payment loan.
  • Initial reservation period is 90 days, with possible extensions.
  • Cannot be combined with Law Enforcement and Correctional Officer Grant or Veterans Grant.
  • Repayment conditions apply upon future sale or refinance.

Eligibility:

• • Qualifying as a First-time Homebuyer (FTHB)
  • No ownership in a principal residence during the 3-year period ending on the date of purchase.
  • Displaced homemaker or single parent meeting specific criteria.
  • Qualifying Mortgage Loan:
  • Loan purchased and serviced by Utah Housing.
  • Secured by a recorded Deed of Trust in the county where the home is located.
  • Can be any eligible first mortgage loan through Utah Housing and its Participating Lenders.
  • Qualifying Residential Unit:
  • Located in Utah.
  • New construction or newly constructed but not yet inhabited.
  • Financed by a qualifying mortgage loan.
  • Owner-occupied upon purchase.
  • Purchase price does not exceed $450,000.
  • Includes single-family homes, condominiums, townhomes, manufactured, or modular homes on a permanent foundation.

Benefits:

• • 0% interest, no-monthly-payment loan.
  • Assistance toward the purchase of a newly constructed home up to $20,000 which may be used for down payment, closing costs
  • Option to combine with a Utah Housing down payment assistance second mortgage.
  • Rate reduction available at the time of interest rate lock request (if not utilized).

Requirements:

• • Credit-qualify for a Utah Housing first mortgage with a Lender.
  • Income limits vary by Utah Housing loan program.
  • Residency requirement of at least twelve (12) months in Utah.
  • Program loan cannot be combined with specific grants.
  • Repayment conditions apply upon future sale or refinance.

How to Apply:

• • Contact a Utah Housing Participating Lender to get pre-qualified for a first mortgage loan, which may be used in conjunction with this program.
  • Credit-qualify for a Utah Housing first mortgage.
  • Submit a Program reservation request.
  • Fulfill all necessary documentation and comply with program requirements.

Utah First-time Homebuyer Law Enforcement Officer Grant

This program is designed to help recruit and retain Utah Law Enforcement and Correctional Officers in Utah.

Highlights:

• • Interest-free, forgivable grant to assist Law Enforcement and Correctional Officers in purchasing a home in Utah.
  • Grant amount: Up to 3.5% of the purchase price, not to exceed $25,000.
  • Grant reservations will be issued on a first-come, first-serve basis

Eligibility:

• • Full-time employment as law enforcement or correctional officer, as defined in Utah Code Sections 53-13-103 or 53-13-104.
  • First-time homebuyer; certain conditions may waive this requirement.
  • The home must be owner-occupied within 30 days of closing and remain so during the 5-year grant term.
  • Only one grant per property is eligible.
  • Only one grant per officer per lifetime.

Benefits:

• • No-payment, no-interest grant.
  • Assistance for down payment, closing costs, and more.
  • Potential interest rate reduction on the first mortgage if UHC down payment assistance is not utilized.
  • Grant forgiveness over 5 years of continuous employment and residence in Utah.
  • Grant may be combined with a Utah Housing down payment assistance second mortgage.

Requirements:

• • Credit qualification for a Utah Housing Mortgage with an approved Utah Housing Lender.
  • First Mortgage must be a Utah Housing First Home, FHA/VA, or Freddie Mac HFA Advantage.
  • The officer must be a first-time homebuyer (certain conditions may waive this).
  • The first mortgage must be funded and serviced by Utah Housing.
  • Compliance with grant forgiveness terms, including residency and employment requirements.

How to Apply:

• • Contact a Utah Housing Corporation Approved Lender.
  • Credit-qualify for a Utah Housing first mortgage.
  • Submit a Program reservation request.
  • Fulfill all necessary documentation and comply with program requirements.

Utah Homebuyer Veteran Grant

This grant is designed to assist members of the military or veterans in purchasing a home in Utah. Eligible veterans may receive up to $2,500 when acquiring a home.

Highlights:

• • Forgivable grant with no payment, no interest, and no lien.
  • Grant amount: $2,500 (subject to fund availability).
  • Intended for closing costs and/or down payment.
  • Occupancy of purchased home within 30 days.

Eligibility:

• • Individuals currently serving in the military and veterans discharged within the past 5 years.
  • Utah Department of Veterans and Military Affairs (UDVMA) approved veteran eligibility.
  • First-time homebuyer in Utah within the past 7 years or a veteran relocating to Utah from out of state.

Benefits:

• • Cash grant for eligible veterans with no repayment requirement.
  • Support for closing costs and down payment.
  • Applicable for VA, FHA, or Conventional loans through Utah Housing Corporation (UHC) and approved participating lenders.
  • May be combined with UHC closing cost and down payment assistance second mortgage.

Requirements:

• • Pre-qualify with an approved lender.
  • Obtain Veteran Grant Status eligibility from UDVMA.
  • The approved lender processes and requests grant funds for the veteran.
  • Home loan must close before the expiration of the Veterans Grant Reservation Agreement.

How to Apply:

• • Contact Utah Housing Corporation at 801-902-8200 or [email protected].
  • Visit www.utahhousingcorp.org for more information.
  • Follow UDVMA procedures to obtain Veteran Grant Validation.
  • Work with any licensed lender in Utah offering conforming loan programs.
  • Ensure the lender receives a Veteran Grant Reservation Agreement from Utah Housing before closing.

Additional Restrictions:

• • Home purchase must be in Utah.
  • Occupancy of the home is required.
  • First-time homebuyer status in Utah (previous homeownership in another state is acceptable).
  • Veteran must have obtained the Veteran Grant Validation from UDVMA.
  • Lender must have received a Veteran Grant Reservation Agreement from Utah Housing before closing.

Vermont

VHFA MOVE Program

The Vermont Housing Finance Agency’s (VHFA) MOVE program provides homebuyers with the

organization’s lowest interest rates, featuring a 30-year fixed-rate mortgage loan. With down payment options ranging from 0% to 5% (to be determined by the lender), this program offers additional benefits such as down payment and closing cost assistance.

Highlights:

• • 30-year fixed-rate mortgage loan.
  • Down payments range from 0% to 5% (determined by the lender).
  • Down payment and closing cost assistance available.

Eligibility:

• • Must be a first-time homebuyer or not have owned a residence in the prior three years if purchasing in Addison, Bennington, Chittenden, Grand Isle, or Windsor counties.
  • Minimum credit score of 640 or higher, (lender will determine required score)
  • Income limit, purchase price limit, credit and other eligibility requirements apply
  • Completion of homebuyer education course.

Benefits:

• • Access to VHFA’s lowest interest rates.
  • Possible lower mortgage insurance premiums for conventional loans.
  • Low down payment requirements.
  • Eligibility for VHFA’s down payment assistance program.
  • Up to $825 savings on Vermont Property Transfer Tax at closing.

Requirements:

• • Property can be a single-family home, condominium, townhome, duplex, or certain manufactured homes (on owned land), depending on the loan.
  • Property must be in Vermont.
  • Property must serve as the primary residence.
  • Meet VHFA purchase price limits, which depend on the county and property type

How to Apply:

• • Contact a participating lender and express interest in exploring VHFA programs.
  • Determine eligibility, down payment options, and other details with the lender.
  • Complete any required pre-closing education courses.
  • Ensure compliance with VHFA income limits and property purchase price limits.
  • Proceed with the application process guided by the VHFA MOVE program guidelines.

VHFA Advantage Program

The VHFA Advantage program is tailored for first-time homebuyers, offering a 30-year fixed-rate mortgage with a flexible down payment ranging from 0% to 5% (determined by the lender). It provides down payment and closing cost assistance, along with potential savings on Vermont Property Transfer Tax at closing. It is quite similar to VHFA’s MOVE program, however, Advantage Program has higher income limits to help middle-income buyers.

Highlights:

• • 30-year fixed-rate mortgage.
  • Down payment flexibility (0% to 5%, determined by the lender).
  • Down payment and closing cost assistance available.

Eligibility:

• • Suited for individuals with higher incomes.
  • Minimum credit score of 640 or higher, (lender will determine required score)
  • Income limit, purchase price limit, credit and other eligibility requirements apply
  • Completion of homebuyer education course.

Benefits:

• • Flexible down payment options.
  • Assistance with down payment and closing costs.
  • Up to $825 savings on Vermont Property Transfer Tax at closing.

Requirements:

• • Minimum credit score starting at 640, with higher minimum scores potentially required (determined by the lender).
  • Compliance with income and purchase limits specific to the Advantage program.
  • Meeting credit and other eligibility requirements.
  • Borrowers must take occupancy of the property as a primary residence within 60 days after closing and continue to occupy for the entirety of the loan.

How to Apply:

• • Contact a participating lender and express interest in exploring VHFA programs.
  • Determine eligibility, down payment options, and other details with the lender.
  • Complete any required pre-closing education courses.
  • Ensure compliance with VHFA income limits and property purchase price limits.
  • Proceed with the VHFA Advantage program application process guided by program guidelines.

VHFA MOVE MCC Program

The VHFA MOVE MCC program seamlessly integrates the features of VHFA’s MOVE program with the Mortgage Credit Certificate (MCC). Like the MOVE program, MOVE MCC offers a 30-year fixed- rate mortgage loan, albeit with a potentially slightly higher interest rate. However, this is offset by the added benefit of a tax credit, providing savings of up to $2,000 on federal income taxes.

Highlights:

• • 30-year fixed-rate mortgage loan.
  • Down payment flexibility (0% to 5%, determined by the lender).
  • Down payment and closing cost assistance available.
  • Up to $825 savings on Vermont Property Transfer Tax at closing.
  • Annual Federal tax credit up to $2,000 with the MCC. Restrictions apply.
  • Income limit, purchase price limit, credit, and other eligibility requirements apply.

Eligibility:

• • Must meet MOVE program criteria.
  • Minimum credit score begins at 640, with higher minimum scores possibly required (determined by the lender).
  • No ownership within prior 36 months if purchasing in specified counties (Addison, Bennington, Chittenden, Grand Isle, or Windsor County).
  • Adhere to income limits, purchase price limit, credit, and other eligibility requirements.

Benefits:

• • Blends MOVE program advantages with MCC benefits.
  • Federal tax credit of up to $2,000 enhances affordability.
  • Savings on transfer taxes, low down payment options, and lower mortgage insurance.
  • Eligibility for VHFA’s down payment ASSIST program.

Requirements:

• • Minimum credit score starting at 640, potentially higher (determined by the lender).
  • Compliance with income limits, purchase price limits, and other MOVE program criteria.
  • No ownership within the prior 36 months in specified counties.

How to Apply:

• • Contact a participating lender and express interest in exploring VHFA programs.
  • Determine eligibility, down payment options, and other details with the lender.
  • Complete any required pre-closing education courses.
  • Ensure compliance with VHFA income limits and property purchase price limits.
  • Proceed with the VHFA MOVE MCC program application process guided by program guidelines.

VHFA ASSIST Program

The VHFA ASSIST program, also known as the Down Payment and Closing Cost Assistance, is designed to provide financial support to first-time homebuyers through a 0% interest loan with no monthly payments. This assistance is exclusively available when combined with a VHFA Move, Move MCC, or Advantage Mortgage Program.

Highlights:

• • 0% interest loan with no monthly payments due on sale.
  • Maximum loan amount: $10,000 or $15,000 based on income (determined by the lender).

Eligibility:

• • True first-time homebuyers as per program criteria.
  • Only for eligible borrowers using VHFA Move, Move MCC, or Advantage Mortgage Program.
  • Adherence to income-based loan limits.
  • Reserved for true first-time homebuyers (both borrowers and non-borrowing spouses).
  • Not available with Veteran (VA) loans.

Benefits:

• • Loans of up to $15,000 towards down payment and closing costs.
  • Attractive terms with a 0% interest rate and no monthly payments.
  • Repayment only triggered upon property sale, refinance, or full mortgage payment.
  • Potential for minimal repayment if home equity grows due to rising property values.

Requirements:

• • Participants must meet VHFA’s first-time homebuyer criteria.
  • Integration with VHFA Move, Move MCC, or Advantage Mortgage Program.
  • Adherence to income-based loan limits.
  • Exclusion of Veteran (VA) loans.

How to Apply:

• • Enroll in VHFA Move, Move MCC, or Advantage Mortgage Program.
  • Confirm eligibility for the VHFA ASSIST program.
  • Discuss loan amount and terms with the lender.
  • Submit necessary documentation.
  • Upon approval, utilize the down payment and closing cost assistance for your home purchase.
  • Repayment only required upon property sale, refinance, or full mortgage payment.

First Generation Homebuyer Program

The First Generation Homebuyer Program offers a $15,000 grant for down payment and closing costs, and can be combined with VHFA ASSIST to receive up to $25,000 – $30,000. This program aims to assist true first-time homebuyers in building equity and improving affordability. Funding is limited and available on a first-come, first-served basis.

Highlights:

• • $15,000 grant for down payment and closing costs.
  • Can be combined with VHFA ASSIST, potentially totaling up to $25,000 – $30,000 in assistance.
  • Available exclusively with VHFA loan programs (MOVE, MOVE MCC, and ADVANTAGE when available).

Eligibility:

• • True first-time homebuyers with less than $30,000 in combined liquid assets.
  • At least one owner must meet the following criteria related to parental homeownership history or foster care experience.
    • Have parents or legal guardians who never owned a home in any state or country, OR
    • Have parents or legal guardians who lost their home due to foreclosure and did not own again, OR
    • Be an individual who has at any time been in foster care.
  • Additional credit, income, asset, and property eligibility requirements apply.

Benefits:

• • Grant assistance for down payment and closing costs closing to enhance affordability for eligible first-time homebuyers
  • Potential to combine with VHFA ASSIST and other funding sources.
  • Designed to help homebuyers build equity and improve affordability.

Requirements:

• • Must pair with an available VHFA first mortgage program and an eligible first mortgage product
  • Adherence to compliance and eligibility criteria outlined in the VHFA Procedural Guide
  • Specific criteria related to parental homeownership history or foster care experience.

How to Apply:

• • Contact a participating local lender to determine eligibility.
  • Reserve the grant with a VHFA mortgage after finding a home and meeting eligibility requirements.
  • Follow program-specific guidelines for fund application

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program offers a federal tax credit of up to $2,000 annually for borrowers residing in the home and paying mortgage interest. This program is available with MOVE MCC or with a non-VHFA mortgage provided by a VHFA Participating Lender.

Highlights:

• • Federal tax credit of up to $2,000 each year for qualifying borrowers.
  • Applicable when residing in the home and paying mortgage interest.

Eligibility:

• • Participants in MOVE MCC or those with a non-VHFA mortgage through a VHFA Participating Lender.
  • Restrictions apply, and eligibility criteria must be met.

Benefits:

• • Annual federal tax credit, providing potential savings of up to $2,000.
  • Helps free up income for first-time homebuyers to qualify for a home loan.
  • Aids in managing monthly mortgage payments effectively.
  • Leverage the MCC to enhance annual tax savings and ease the financial burden of mortgage interest payments.

Requirements:

• • Participation in MOVE MCC or a non-VHFA mortgage through a VHFA Participating Lender.
  • Adherence to program-specific restrictions and eligibility criteria.

How to Apply:

• • Enroll in MOVE MCC or secure a non-VHFA mortgage through a VHFA Participating Lender.
  • Confirm eligibility for the Mortgage Credit Certificate program.
  • Explore the potential benefits of the federal tax credit.
  • Work with the lender to ensure compliance with program requirements.

Other Special Programs (non-VHFA)

In addition to VHFA, various special programs are available to help lower the costs of purchasing a home in Vermont:

Shared Equity Down Payment Grant

• • Purchase a home through a VT NeighborWorks HomeOwnership Center near you. This program provides a down payment grant to reduce the purchase price and monthly payments. Limited inventory, with income and eligibility criteria. Visit Vermont NeighborWorks Alliance to locate a HomeOwnership Center in your vicinity.

Habitat for Humanity

• • Collaborate with volunteers through a local Habitat for Humanity chapter to build a home. Invest ‘sweat equity’ to lower the purchase price and monthly payments. Project availability is limited, with income and eligibility requirements. Visit Green Mountain Habitat, Central Vermont Habitat, or Bennington County Habitat for more information.

USDA RD Direct 502 Home Loan

• • A special subsidized loan with the potential to lower the interest rate to 1%. This program requires no down payment. Apply directly through the Vermont USDA Office, and adhere to income and eligibility requirements. Visit USDA RD Single Family Direct Home Loan for more details.

Note: Except for the USDA RD Direct 502 Home Loan, these special programs may be used in conjunction with VHFA programs. Consult with a VHFA Participating Lender for more information.

Virginia

Virginia Housing Conventional Loan

This loan program offers affordable financing solutions tailored for both first-time and repeat homebuyers.

Highlights:

• • Available for both first-time and repeat homebuyers.
  • Applicable for purchase or limited cash-out refinance.
  • Features a 30-year, fixed-rate loan
  • Flexible down payment sources allowed, including gifts, Virginia Housing Down Payment Assistance Grant (bond only), Virginia Housing Plus Second Mortgage, and other eligible second mortgages.

Eligibility:

• • 3% down payment required (or as low as 1% with Virginia Housing Down Payment Assistance Grant (bond only) or 0% down with Plus Second Mortgage).
  • Minimum credit score of 640.
  • Maximum 50% debt-to-income ratio.
  • 3% maximum seller concessions (or 6% if with a down payment of 10% or greater).
  • Maximum 97% loan-to-value (105% combined loan-to-value).
  • Income and Sales Price / Loan Limits apply

Benefits:

• • Less cash required at closing compared to FHA loans.
  • Low 3% down payment requirement.
  • Facilitates repeat homebuyers in “moving up” (non-bond only).
  • Allows for 97% maximum financing.
  • Lowest mortgage insurance requirements.
  • Eligible for limited cash-out transactions (non-bond only).
  • Qualifies for Virginia Housing Plus Second Mortgage.
  • Eligible for Virginia Housing’s DPA grant (bond only).

Requirements:

• • Attend a first-time homebuyer education class.
  • Adhere to the credit and underwriting requirements of the program

How to Apply:

• • Attend a first-time homebuyer education class
  • Find a Virginia Housing-approved lender and get pre-approved.
  • Choose a real estate agent to help with your home search.
  • Finalize your mortgage application with your pre-selected lender.

Virginia Housing Conventional No Mortgage Insurance (No MI)

Offers affordable monthly payments without the need for mortgage insurance.

Highlights:

• • Requires less cash at closing compared to FHA loans.
  • Open to both first-time and repeat homebuyers.
  • Applicable for purchase or limited cash-out refinance.
  • Features a 30-year, fixed-rate loan.
  • No mortgage insurance up to 97% loan-to-value.
  • Accepts flexible down payment sources, including gifts, Virginia Housing Plus Second Mortgage, and other eligible second mortgages.

Eligibility:

• • 3% down payment required or 0% down with Plus Second Mortgage.
  • Minimum credit score of 660.
  • Maximum 50% debt-to-income ratio.
  • 3% maximum seller concessions (or 6% if with a down payment of 10% or greater).
  • Maximum 97% loan-to-value (105% combined loan-to-value).
  • Income and Sales Price / Loan Limits apply

Requirements:

• • Attend a first-time homebuyer education class.
  • Adhere to the credit and underwriting requirements of the program

How to Apply:

• • Attend a first-time homebuyer education class
  • Find a Virginia Housing-approved lender and get pre-approved.
  • Choose a real estate agent to help with your home search.
  • Finalize your mortgage application with your pre-selected lender.
  • Attend the loan closing with your attorney or closing agent.

Virginia Housing Plus Second Mortgage

The Virginia Housing Plus Second Mortgage is designed to remove the down payment barrier for eligible first-time and repeat homebuyers by combining it with an eligible Virginia Housing first mortgage to cover the down payment.

Highlights:

• • Available to both first-time and repeat homebuyers.
  • Features a 30-year fixed-rate loan with no prepayment penalty.
  • The second mortgage amount ranges from 3% to 5% of the purchase price, depending on your credit score and the type of Virginia Housing first mortgage.
  • Eliminates the need for a down payment.
  • Qualified buyers with a credit score of 680 or higher may finance part of their closing costs into the second mortgage.

Eligibility:

• • Be a qualified first-time or repeat buyer
  • Have a non-bond or bond FHA/ Conventional or non-bond Conventional No MI loan from Virginia Housing
  • Be within Virginia Housing’s sales price / loan limits
  • Borrowers must have 1% of the purchase price available at closing
  • This loan is for purchase transactions only

Benefits:

• • Eliminates the need for funds for a down payment.
  • The second mortgage comes with a 30-year fixed rate.
  • Helps to keep an affordable total mortgage payment.
  • Potential elimination of funds needed at closing.
  • Expands homeownership opportunities for both first-time and repeat buyers.
  • Can borrow up to 5% of the home’s purchase price and qualified buyers can borrow 1.5% more
  • Higher income limits cater to buyers who don’t qualify for grant funds.

Requirements:

• • Have a non-bond or bond FHA/ Conventional or non-bond Conventional No MI loan from Virginia Housing
  • Follow first mortgage requirements
  • Have a minimum of 1% of the sales price documented and available to be used towards closing costs/prepaid items or to be held in reserves (or a combination of the two)
  • Qualified homebuyers can borrow 1.5% more than the sales price.
  • Virginia Housing standard income limits apply

How to Apply:

• • Contact a Virginia Housing-approved lender to determine your eligibility.

Virginia Housing Down Payment Assistance Grant (DPA)

Virginia Housing’s Down Payment Assistance Grant is designed to empower qualified first-time homebuyers by providing funds to alleviate the financial burden of a down payment, making homeownership more attainable.

Highlights:

• • Exclusive to first-time homebuyers.
  • Mitigates the funds needed for a down payment.
  • No repayment is required, making it a true gift.
  • Reduces the monthly housing payment.

Eligibility:

• • Be a qualified first-time homebuyer or repeat buyer purchasing in Areas of Economic Opportunity
  • Grant funds must be utilized with an eligible Virginia Housing bond loan (and also meet all of the requirements of that first mortgage)
  • Must be within Virginia Housing’s Income and Sales Price / Loan Limits
  • The combined income of all household members must not exceed Virginia Housing loan limits

Benefits:

• • 1% down payment. The maximum grant amount ranges from 2% to 2.5% of the purchase price, depending on the type of Virginia Housing mortgage loan received.
  • As a grant, it doesn’t require repayment.

Requirements:

• • Limited to first-time homebuyers.
  • Grant funds must be paired with an eligible Virginia Housing bond loan.
  • The eligible Virginia Housing mortgage must be locked before reserving grant funds.

How to Apply:

• • Contact a Virginia Housing-approved lender to determine your eligibility.
  • For additional information on Virginia Housing’s Down Payment Assistance Grant, visit VirginiaHousing.com/DownPayment

Virginia Housing Closing Cost Assistance (CCA) Grant

The Closing Cost Assistance Grant minimizes the upfront costs for first-time homebuyers applying for an eligible Rural Housing Service (RHS) or Veterans Affairs (VA) bond loan. This grant makes these 100% financing programs even more affordable.

Highlights:

• • Reduces out-of-pocket expenses for borrowers applying for RHS or VA bond loans.
  • Enhances the affordability of 100% financing programs.

Eligibility:

• • Exclusive to first-time homebuyers.
  • Applicable only when used with an RHS or VA bond loan from Virginia Housing.
  • The combined income of all household members must not exceed Virginia Housing loan limits
  • The eligible Virginia Housing mortgage must be locked before reserving grant funds.

Benefits:

• • Offers a maximum grant of 2% of the purchase price.
  • As a grant, it does not require repayment, making it a true gift.
  • Grant funds can be applied to closing costs, RHS guarantee, or VA funding fee.
  • May strengthen negotiation capabilities for RHS and VA contracts.

Requirements:

• • Reserved for first-time homebuyers.
  • Must be used in conjunction with an RHS or VA bond loan from Virginia Housing.
  • The eligible Virginia Housing mortgage must be locked before reserving grant funds.

How to Apply:

• • Contact a Virginia Housing-approved lender to determine your eligibility.

HOMEownership Down Payment & Closing Cost Assistance Program

The HOMEownership Down Payment and Closing Cost Assistance program (DPA) offers flexible gap financing to first-time homebuyers with incomes at or below 80 percent of the area median income (AMI). This program aims to facilitate the purchase of safe, decent, and accessible homes by providing down payment assistance in the form of a grant, coupled with a mandatory “affordability period” during which the applicant must occupy the home as their primary residence. Eligible homebuyers may receive up to 10 percent or 15 percent (within approved areas by DHCD) of the sales price, along with up to $2,500 to cover closing costs, such as attorney’s fees, title insurance, and taxes.

Highlights:

• • Provides flexible gap financing for first-time homebuyers.
  • Designed for individuals with incomes at or below 80 percent of the area median income (AMI).
  • Offers down payment assistance in the form of a grant.
  • Mandatory “affordability period” requires the applicant to occupy the home as their primary residence.
  • Eligible homebuyers may receive up to 10 percent or 15 percent (within approved areas) of the sales price, plus up to $2,500 for closing costs.

Eligibility:

• • Qualify as a first-time homebuyer (never owned a home before or haven’t owned a primary residence in the past three years.
  • Receive homeownership counseling from a HUD-certified agency and counselor.
  • Complete a HUD-certified Homebuyer Education Course.
  • Income below 80% of the AMI.
  • Have a credit score of 620 or higher and a debt-to-income ratio below 43%.
  • Contribute one percent of the home’s sales price (or $500 if income is below 50% of AMI) from personal funds, providing receipts as proof.
  • Eligibility requirements may vary by region and are administered through local DPA providers.

Benefits:

• • Provides financial assistance for down payment and closing costs.
  • Grants are provided to eligible homebuyers, reducing the financial burden of purchasing a home.
  • Flexible financing options help make homeownership more accessible to qualified individuals.

Requirements:

• • Must be a first-time homebuyer.
  • Income must be at or below 80 percent of the area median income (AMI).
  • Applicant must occupy the purchased home as their primary residence.
  • Compliance with any additional eligibility criteria determined by local DPA providers.

How to Apply:

• • Contact local DPA providers in your region to access assistance.
  • For a list of local DPA providers, refer to the DPA Local Provider Contact List available through DHCD.

Virginia Housing’s SPARC Program

SPARC (Sponsoring Partnerships & Revitalizing Communities) is a program by Virginia Housing that offers reduced-rate funding to local governments, nonprofits, and housing industry partners to support specific housing needs. Organizations apply for funding through Virginia Housing, and approved funds receive a 1.00% adjustment to the interest rate below Virginia Housing interest rates on comparable eligible products.

Highlights:

• • Funding and homeownership opportunities for localities and nonprofits.
  • 1% mortgage interest rate reduction for eligible first-time homebuyers.
  • Increased purchasing power and potential long-term savings.

Eligibility:

• • First-time homebuyers purchasing a home to be occupied as the primary residence in specified localities.
  • Household incomes at or below 100% of the Area Median Income Limits.
  • Completion of pre-purchase counseling with SCDHC HUD Certified Counselors.
  • Completion of the Virginia Housing Homebuyers Education class online or in person by a HUD Approved Housing Counseling Agency.
  • Utilization of a Virginia Housing Lender to originate the VHDA mortgage loan.
  • Eligible products:
    • Conventional
    • Conventional No MI
    • FHA
    • VA
    • RHS

Benefits:

• • Lower mortgage interest rates for eligible first-time homebuyers.
  • Increased affordability and purchasing power.
  • Potential long-term savings over the life of the loan.

Requirements:

• • Compliance with eligibility criteria and program guidelines.
  • Participation in pre-purchase counseling and homebuyers education class.
  • Utilization of a Virginia Housing Lender for mortgage loan origination.

How to Apply:

1. Ensure eligibility based on residency and income criteria.
2. Participate and complete pre-purchase counseling with SCDHC HUD Certified Counselors.
3. Complete the Virginia Housing Homebuyers Education class online or in person through a HUD Approved Housing Counseling Agency.
4. Utilize a Virginia Housing Lender to originate the VHDA mortgage loan.
5. Apply for the SPARC program during specific application periods as announced.

Please refer to the application procedures of the following List of SPARC Sponsors:

• Arlington County Government
• Blue Ridge Housing Network, Inc.
• Centro de Apoyo Familiar
• City of Alexandria – Office of Housing
• Community Housing Partners Corporation
• Fairfax County Redevelopment and Housing Authority
• First Home Alliance, Inc.
• Habitat for Humanity Virginia
• Hampton Redevelopment Housing Authority
• Hampton Roads Planning District Commission
• Housing Opportunities Made Equal of Virginia, Inc.
• (HOME)
• Latino Economic Development Corporation of
• Washington, DC
• Loudoun County Office of Housing
• Nelson County Community Development Foundation
• Norfolk Redevelopment & Housing Authority – HomeNet
• Homeownership Center
• People Incorporated of Virginia
• Piedmont Housing Alliance
• Prince William County OHCD
• Southeast Rural Community Assistance Project, Inc
• The Maggie Walker Community Land Trust
• Urban League of Hampton Roads, Inc.
• Virginia Department of Housing and Community
• Development (DHCD)

Government Loan Programs

Virginia Housing offers several federal government loan programs tailored for both first-time and repeat homebuyers.

Federal Housing Authority (FHA)

• • FHA-insured.
  • Low down payment
  • Available to first-time and repeat homebuyers.
  • Eligible for Virginia Housing’s Down Payment Assistance Grant (bond only) or Plus Second Mortgage.
  • 3.5% down payment (or as low as 1% down with Down Payment Assistance Grant, or 0% down with Plus Second Mortgage).
  • Liberal credit qualifying; credit scores may be as low as 620.

USDA Rural Housing Service

• • USDA-guaranteed.
  • $0 required for eligible rural properties
  • Available to first-time and repeat homebuyers.
  • Eligible for Virginia Housing’s Closing Cost Assistance Grant (bond only).
  • 100% financing for eligible rural properties.
  • Affordable monthly payments.
  • Low mortgage insurance.
  • Liberal credit qualifying; credit scores may be as low as 620.

Veterans Administration (VA)

• • VA-guaranteed.
  • $0 down payment required for eligible veterans
  • Available to first-time and repeat homebuyers.
  • Eligible for Virginia Housing’s Closing Cost Assistance Grant (bond only).
  • 100% financing for eligible veterans.
  • Liberal credit qualifying; credit scores may be as low as 620.

Requirements:

• • Each program has its own set of requirements; refer to specific program guidelines

How to Apply:

• • Attend a first-time homebuyer education class
  • Connect with a Virginia Housing-approved lender to explore these government loan programs tailored to your homeownership journey and get pre-approved.
  • Choose a real estate agent to help with your home search.
  • Finalize your mortgage application with your pre-selected lender.
  • Attend the loan closing with your attorney or closing agent.