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VHDA Program Updates

To: VHDA Originating Lenders

Re: Program Updates & Announcements

Date: March 2, 2007

Reduced Flex Alt Program Rates
In addition to VHDA’s New Flex Alt Interest Only Program, VHDA has improved the pricing on all Flexible Alternative products.  These lower rates combined with zero downpayment and no mortgage insurance make Flex Alt the perfect option for your customers looking for low payments with minimal cash investment. Lenders should compare the Flex Alt payment to 80/20 combo loans before locking your borrowers.  VHDA Flex Alt’s higher income limits make this program available to a wider audience and the reduced documentation makes processing quick and easy.  Details on all Flex Alt programs are available on VHDA’s website in the Program Information under the Lender Info section at



Delinquent Document Penalty Fees
Satisfactory documentation to complete loans closed prior to April 1, 2006 must be received at VHDA by March 31, 2007 to avoid a late fee of $1,000.00 per loan.  If any previously billed penalty fees have not been paid, or satisfactory documentation provided to complete the file, an additional $1,000.00 per loan will be assessed.  VHDA’s goal is for closed loan files to be completed within twelve (12) months.  If you have any questions or need additional clarification on delinquent document penalty fees, please contact Sheila Pollard at (804)343-5976 or or Connie Ogren at (804)343-5927 or



Upcoming Training Sessions
VHDA has several lender training sessions scheduled during the next few months.  The following sessions are scheduled:


      Loan Officer Training                                                March 13, 2007    Roanoke

      Loan Officer Training                                                April 19, 2007       Herndon

      Delegated Underwriting Training                                April 16, 2007       Richmond

      Delegated Closing, Post Closing & Shipping               April 17, 2007       Richmond


Advance registration for each session is required. For additional information or to register to attend one of these sessions please visit VHDA’s web site in the “Upcoming Training Sessions” section in the Lender Info section of



VHDA Condominium Financing Guidelines

VHDA typically follows industry guidelines regarding the financing of condominium units.  VHDA does not approve condominium projects.  Condominium guidelines and requirements vary based on the VHDA product and the status of the condominium project.


In addition to the condominium project guidelines stated below, the appraisal must clearly establish market acceptance for the project through comparable sales within the subject market and the project.  VHDA reserves the right to limit the total number of units financed in any project or phase.


VHDA FHA,VA and RHS Financing:

The condominium must be approved in accordance with the applicable insuring agency guidelines.


VHDA Conventional Financing:

VHDA allows financing through all conventional insured and uninsured products if the condominium project is approved by Fannie Mae or Freddie Mac or the project meets the warranty requirements for either of these agencies.  In addition, Expedited Review approvals through Fannie Mae’s Condo Project Manager are accepted. The lender’s underwriter must indicate the warranty classification on the 1008 or by separate statement. 


Lender-delegated Limited Review approvals through Fannie Mae Desktop Underwriter are no longer allowed for financing of new condominium projects or new condominium conversions without prior approval by VHDA.  VHDA will consider approval of these loans for financing through our conventional programs on a case by case basis. Approval will be based on the overall strength of the borrower, loan terms (loan to value and program type) and condominium project status (number of pre-sales, closed loans and investor concentration).  Lenders must submit the Desktop Underwriter Findings, Loan Application and appraisal to VHDA for consideration of approval for Limited Reviews.  Any individual loan approval will not represent project approval for other transactions.  Limited Review approvals will be accepted for loans that have either been reserved with VHDA or have been approved by a VHDA delegated underwriter prior to this announcement.


Questions regarding condominium approvals should be directed to Janice Burgess at 804-343-5926 or e-mail to

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