FOR IMMEDIATE RELEASE
April 2, 2001

CONTACT, Katie O'Rourke
804-343-5520
katie.orourke@vhda.com

RICHMOND, VA - No downpayment or mortgage insurance required, 100% financing, and lower monthly payments are just a few of the benefits offered with the new Virginia Housing Development Authority Flexible Alternative Home Loan programs now available to qualified Virginia homebuyers.

"The Flex Alt programs were originally designed to offer existing and new homebuyers increased buying power and affordability," said VHDA Executive Director Susan Dewey.

"We now have innovative home loan products that offer flexibility, creative financing, low qualifying rates, additional funds for modifications, and ultimately, lower house payments with the Flex Alt line of products," said Dewey.

Don Ritenour, director of the single family division said the diversity of the Flex Alt programs fill a variety of needs in the single family marketplace. "We have developed a number of products to satisfy homeowners with different needs. VHDA now offers programs designed for repeat homeowners in need of downpayment assistance or more liberal credit requirements. We also offer programs for persons with disabilities and special needs," said Ritenour.

The primary Flex Alt programs include the:

• Flex Alt 100 - An attractive alternative for borrowers wishing to "move up" or refinance their current mortgage. With no downpayment and no mortgage insurance required, this program increases buying power for borrowers with stable incomes and quality credit.

• Flex Alt STEP - This program couples the flexible features of the Flex 100 program with the lower rate of the STEP loan program. It enables a borrower to qualify for more house with no downpayment and lower monthly payments. The initial qualifying interest rate is approximately 1% below conventional market rates. This feature, in addition to the elimination of mortgage insurance, equates to approximately a 2% lower interest rate during the first year.

• Flex Alt Home Enhancer - This program offers qualified borrowers the option to finance modest home improvements and upgrades of their choice. Borrowers may finance up to an additional 5% of the sales price for improvements (maximum loan-to-value 105%). Improvements may include: carpeting; painting; electrical, heating, kitchen, decks, and others. Funds are held in escrow allowing improvements to be made after loan closing, avoiding delay of scheduled settlement or moving dates.

• Flex Alt Home Access - A variation on the Home Enhancer, the Home Access allows for the financing of up to 10% of the sales price (maximum loan-to value 110%) for the costs of accessibility. Modifications may include items such as: access ramps; wider doorways; lowered countertops; and bathroom modifications.

All VHDA Flexible Alternative loan products offer flexible program guidelines, flexible allowable sources for closing costs, and loan amounts up to $275,000. Unlike most VHDA loan programs, the Flex Alt program is available to applicants at moderate income limits adjusted by area. In addition, most Flex Alt loan programs are eligible for submission through the VHDA FasTrak automated underwriting system which provides initial loan approval within minutes.

In addition to the new Flex Alt programs, for more than 25 years VHDA has offered home loan financing for first time homebuyers, usually at interest rates significantly below market rates. More than 125,000 Virginians have taken advantage of the attractive financing available, and the variety of first time homebuyer programs offered by VHDA. For further information, call: 800-227-8432.

VHDA is a $7 billion, non-profit, quasi-governmental housing finance agency that operates without benefit of state funds. The authority provides low-interest home loans and other home loan financing alternatives to Virginians seeking safe, decent, affordable housing.

For additional information about the Flexible Alternative loan programs, call VHDA at: 1.800.227.8432 or visit our visit our website at: www.vhda.com/sf.