Date: April 5, 2002

To: VHDA Originating Agents

Re: VHDA Single Family Loan Program Changes

Below you will find information related to several changes and clarifications to VHDA Single Family loan programs. This announcement includes many changes which are expected to expand program eligibility and increase efficiency for lenders. This also includes notification of the elimination of the Step Rate Option under the Flexible Alternative loan program. Unless otherwise noted, these changes are effective immediately.

Recipients of this announcement are requested to provide this information to other associates within your organization who are involved in any aspect of VHDA lending.

Thank for continued support of VHDA programs. We appreciate your participation in our programs and your suggestions and comments. Most of the program changes included in this announcement are a direct result of the suggestions and feedback provided by our participating lenders. If you have any questions regarding these changes, please contact your assigned VHDA representative or the Single Family Development Department at 1-800-227-8432.

Sincerely,

Janice G. Burgess
Single Family
Loan Program Manager