General Eligibility Requirements - First-time Homebuyer Programs
Conventional/FHA/ VA/Rural Housing/Fixed Rate/ FHA Plus/ Homebuyer Tax Credit Plus
These programs are designed to assist creditworthy first-time homebuyers or those who have not owned and occupied a home in the last three years. In addition to the requirements stated below, the Sales Price and Income limits must be met.
Homeownership Education:
Completion of VHDA's Intro to Homeownership class is required by all borrowers in order to become eligible for all VHDA loan programs.
Previous Homeownership:
Unless purchasing in a designated targeted area, Eligible borrowers can not have owned a home for the previous three years.
Tax Returns:
Borrowers must provide copies of the previous three years' tax returns.
Maximum Net Worth:
Applicant(s) net worth can not exceed 50 percent of the sales price of the property being financed. (Some assets are not included; contact approved lender or VHDA.)
Property Use:
The property can not be used in a trade or business, and the applicants must intend to occupy the property as their primary residence.
Maximum Lot Size: The lot size is limited to no more than two acres (waivers for up to 5 acres may be requested).
Maximum Income:
Maximum annual household income can not exceed the published limits for the area in which the property to be financed is located. Sales Price and Income limits
Note that these limits may vary if purchasing in a designated targeted area.
Maximum Sales Price / Loan Amount:
The sales price and total loan amount may not exceed the published limits for the area in which the property to be financed is located. Sales Price and Income limits
Note that these limits may vary if purchasing in a designated targeted area.
Minimum Qualifying Requirements/Amount of House You Can Afford:
As a guideline, the total monthly house payment (principal and interest, plus 1/12th of the real estate taxes, hazard insurance and mortgage insurance) should not exceed 32% of your gross monthly income. In addition, the total monthly house payment (as noted above) plus any additional monthly debt owed (car payments, charge cards, child support payments ) should not exceed 40% of your gross monthly income. Other guidelines may apply based on mortgage insurer or specific program requirements.
