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Change to FHA Plus Program Maximum Loan Amount

To:       VHDA Originating Agents

Date:    April 16, 2010

Re:       Change to FHA Plus Program Maximum Loan Amount

VHDA continues to evaluate our programs in an effort to balance program benefits and risks. In consideration of continuing market challenges and the need to maintain the benefit of first –time homebuyer down payment assistance, VHDA is changing the amount available for the second mortgage of the FHA Plus Program.

  • Borrowers with credit scores between 620 and 679 (or those with no credit score with acceptable non-traditional credit) will be eligible for a second mortgage at a maximum of 3.5% of the lesser of sales price or appraised value.
  • Borrowers with credit scores of 680 and greater will continue to be eligible for a maximum second mortgage of 5% of the lesser of sales price or appraised value.
  • The applicable credit score will be the lower of the middle scores of all borrowers.
  • Maximum second mortgage amount will be based on the credit score available at the time of loan commitment.  No increase to the loan amount will be allowed for improved credit scores after loan commitment.
  • When making a loan reservation beginning May 1, 2010, a credit score for all loan programs will be required to be input in the reservation system.  If the score changes it will be updated at the time of loan commitment.

These changes are effective with reservations beginning May 1, 2010.

Questions regarding this change can be submitted to Janice Burgess at or 804-343-5926.

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