To: VHDA Originating Agents
From: Michele G. Watson Assistant Director of Single-Family Origination
Date: March 27, 2000
Re: Flexible Alternative Condominium Loan Program
Virginia Housing Development Authority is aware that many owners in condominium developments are experiencing difficulty in marketing their units. This difficulty, in many instances, is due to the condo development no longer meeting the FNMA/FHLMC/FHA owner/investor ratio requirements.
VHDA has developed the Flexible Alternative Condominium Loan program to provide financing to persons wishing to purchase a unit in a development that does not meet the secondary market investors’ requirements. VHDA will begin accepting reservations for this loan program April 1, 2000.
The loan to value for the Flexible Alternative Condominium loan will be restricted to 97%. The interest rate will be the same offered for our other Flexible Alternative loan products, however an additional discount point will be charged. The Condominium pricing worksheet is incorporated with the enclosed Condominium Guidelines documents. It is the responsibility of each lender to certify that the subject condo meets the criteria noted in the Condominium Guidelines. The applicant and pricing information must be completed by the lender’s underwriter, signed and submitted with the underwriting package to VHDA. This loan program will not be eligible for Delegated Underwriting at this time.
Click here to view the Flexible Alternative Condominium flyer developed to assist in your marketing efforts. Feel free to download and reproduce this document for distribution. Documents for this loan are available here.
It is our belief that by offering this flexible and attractive product, we will be increasing the financing options available to many deserving purchasers that have been unable to obtain favorable financing terms. The marketability of eligible condominiums in the Commonwealth of Virginia will improve and in time the owner/investor ratio will fall within acceptable limits for standard financing. Should you have any questions regarding this program, please call Toni Ostrowski (804) 343-5982 or Gene Griffin (804) 343-5788.
Michele G. Watson
Assistant Director of Single-Family Origination