To: VHDA Originating Lenders
Re: Important Notice – Program Changes: FHA Plus / Homebuyer Tax Credit Plus
Date: April 29, 2010
FHA Plus Changes:
Lenders are reminded that the changes to FHA Plus are effective with VHDA reservations beginning May 1, 2010.
Maximum second mortgage for FHA Plus:
· Up to 5% of the sales price or appraised value for credit scores 680 and above
· Up to 3.5% of the sales price or appraised value for credit scores 620 – 679.
· The applicable credit score must be input in VHDA’s reservation system when making a loan reservation for all VHDA programs effective May 1, 2010
Homebuyer Tax Credit Plus Program
Any Homebuyer Tax Credit Plus reservations made on or after May 1, 2010 must follow the new FHA Plus guidelines related to the maximum second mortgage amounts noted above for FHA Plus.
The VHDA Homebuyer Tax Credit Plus program is designed to work with the federal first-time homebuyer tax credit. The tax credit will be available only for those transactions for which the contract is executed on or before April 30, 2010 and the loan closes no later than June 30, 2010.
VHDA will continue to accept reservations up to the last week of June for those transactions with contracts executed prior to the April 30, 2010. Reservations made for the Homebuyer Tax Credit program beginning May 1, 2010 cannot be made through the on line reservations systems. Reservations as of May 1, 2010 must be made manually by faxing a completed reservation form to the VHDA Loan Reservations Department at 804-343-8413. Please include the applicable credit score so that we can ensure the proper loan amount is reserved. A new VHDA Loan Reservation Form will be available on the Forms and Documents area on vhda.com May 1, 2010.