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FHA Plus Loan

This VHDA-financed FHA-insured home loan includes a second mortgage designed to help qualified borrowers who need down payment and closing costs assistance.

Program Details

  • Borrower(s) must have cash available equal to a minimum of 1% of the sales price.
  • Second mortgage – 3.5% to 5% of sales price.
  • Maximum second mortgage 3.5% for qualified borrowers with a 620 – 679 credit score or 5.0% for qualified borrowers with a 680 or greater credit score. The maximum second mortgage is based on the lower of sales price or appraised value.
  • The 30-year fixed interest rate for the first and second (both VHDA-financed) mortgage is slightly higher than our standard fixed rate programs.
  • The combined total of the two loans cannot exceed VHDA sales price limits.

VHDA’s standard sales price and income limits apply.

General Eligibility Requirements

  • The standard FHA application/disclosure, along with FHA Plus program applications and disclosure, is required.
  • Buydowns are not available.
  • Both payments are to be included in the FHA shelter ratio.
  • FHA’s standard qualifying guidelines apply (Minimum 620 credit score).
  • Closing for first and second mortgages occurs simultaneously.
  • Payments for both the first and the second mortgage will be due on the same date and paid to the same servicer.
  • Borrowers must complete a VHDA-approved Homeownership Education class.

For more information about FHA Plus, contact your local VHDA-originating lender or VHDA’s originations department.