To: VHDA Originating Lenders
Re: Announcing Exciting Program Enhancements
Introducing new Program Enhancements
We’ve been listening to you! In an effort to align our program guidelines, VHDA will be providing the following program enhancements effective 08/15/2018.
- Minimum 90% LTV on first mortgage with VHDA Plus Second Mortgage or DPA Grant.
- Other non-VHDA down payment assistance allowed with VHDA Plus Second Mortgage or VHDA DPA Grant.
- Additional eligible sources of acceptable funds will be allowed to meet the 1% asset requirement with VHDA Plus Second Mortgage (i.e. Gift funds, 401k loan, etc.).
- Co-borrowers with no credit score may be allowed on the Fannie Mae programs if certain requirements are met.
- Common and customary ancillary fees will replace the previous $1,000 cap.
- Elimination of 3 years tax returns requirement to evidence first-time homebuyer (this can be applied to existing locks that have not closed as long as the revised Borrower Affidavit (Exhibit E2) and Originating Lenders Submission Cover Letter (Exhibit O) are executed.
Clarifications and Additional Resources
Based upon questions and feedback received from previously held training sessions, we would like to provide additional clarifications:
For more details, click on the Old versus New Program Guidelines Comparison matrix found on vhda.com
Several VHDA documents have been updated to reflect changes supporting the new VHDA Plus Second Mortgage product and the above program enhancements. For more details, click on the New Documents and Forms Effective Dates matrix found on vhda.com.
To learn more about the program enhancements and/or the newly introduced VHDA Plus Second Mortgage product, VHDA will be offering training classes. Scheduled classes have been posted on VHDA.com under the “Classes & Events” calendar. Click here today to go directly to the site and register to learn more about the new product and exciting program enhancements.
Please contact your assigned VHDA Business Development Officer or firstname.lastname@example.org if you have any questions.