To: VHDA Originating Lenders
Date: January 14, 2003
VHDA is pleased to announce Round 2 of the SPARC (Sponsoring Partnerships and Revitalizing Communities) loan program. Over $51 million has been set-aside for this round of funding. These special funds will be available at 1/2% to 1% below the standard rate for all of VHDA's first time homebuyer programs financed through mortgage revenue bonds. These include conventional insured, FHA, VA and RHS loans in addition to applicable Step Rate and FHA Plus options. Flexible Alternative programs are not eligible.
SPARC funds have been allocated to local organizations based on a competitive application process. Click here to view a listing of those organizations receiving allocations of these funds. Approved VHDA originating lenders wishing to participate in the origination of these loans are encouraged to contact the SPARC recipient in your area.
Standard VHDA and insurer documents and guidelines will apply, however lenders must contact the SPARC organization to determine any additional program requirements. Each SPARC organization has developed specific criteria to address the special needs for which the funds have been targeted. Additional public and private funds may also be available through the SPARC organization to further increase affordability and assist with downpayment and closing costs.
Reservations for SPARC loans may not be made through the VHDA on-line reservation system. Reservations must be made by completing the SPARC Reservation form and faxing to Gene Griffin or Debra Bailey in VHDA's Reservations area. To ensure accurate tracking of allocation amounts, lenders must notify the SPARC organization prior to reserving funds for a borrower with VHDA.
All other standard procedures including delegated underwriting and closing are to be followed. Should you have questions or concerns, please do not hesitate to contact Gene Griffin, the program administrator or myself.
Michele G. Watson
Assistant Director of