Back to Home
Helping Virginians Attain Quality, Affordable Housing
Follow Us LinkedIn Facebook YouTube RSS Feed Twitter Virginia Housing Blog Instagram
Text Size: A- A  A+ | Text Only | Print Print

Upcoming Conventional Program Changes - New Name & Introduction of Freddie Mac

Virginia Housing will be introducing a name change and enhancements to our conventional programs in September 2020. We are issuing this advance notice to provide our lenders adequate time to prepare for the changes. This notice is only being sent to Virginia Housing Secondary and Operations Contacts - please share with others in your organization as appropriate.

Virginia Housing Conventional Program

To offer more options to our business partners, the Fannie Mae HFA Preferred with Reduced MI program will be renamed the Virginia Housing Conventional program. Fannie Mae’s Desktop Underwriter (DU) will continue to be an acceptable AUS and Freddie Mac’s Loan Product Advisor (LPA) will now also be an option as well. A few program highlights are:

  • Up to 97% LTV for new or repeat buyers (first-time homebuyer required if originated with an MCC, Plus Second Mortgage, or DPA Grant).
  • Purchase and limited cash out refinance options available.
  • Fannie Mae’s DU and Freddie Mac’s LPA with reduced mortgage insurance options(Charter MI). Approve/Accept Eligible required.
  • Minimum 640 credit score.
  • Flexible down payment sources allowed, including gifts, our DPA Grant and Plus Second Mortgage.
  • LLPAs apply when the borrower’s qualifying income exceeds Fannie Mae / Freddie Mac 80% AMI limits.
  • Virginia Housing’s income limits and the conforming loan limit apply (Sales price limit only applies if originating with an MCC, Plus Second Mortgage, or DPA Grant).

Virginia Housing Conventional No MI Program

The Fannie Mae No MI program is now the Virginia Housing Conventional No MI program. Fannie Mae’s DU will continue to be an acceptable AUS but Freddie Mac’s LPA is not an option for the Conventional No MI program. A few program highlights are:

  • Up to 97% LTV for new or repeat buyers, no mortgage insurance required (first-time homebuyer required if originated with an MCC, Plus Second Mortgage, or DPA Grant).
  • Purchase and limited cash out refinance options available.
  • Fannie Mae’s DU Approve Eligible findings required (see below for one exception).
  • Minimum 660 credit score.
  • Flexible down payment sources allowed, including gifts, our DPA Grant and Plus Second Mortgage.
  • Fannie Mae’s 80% AMI limit does not apply. DU will render a decision of Approve Ineligible if the qualifying income exceeds 80% AMI, which is acceptable as long as the only reason for ineligibility is due to income exceeding 80% AMI.
  • Virginia Housing’s income limits and the conforming loan limit apply (Sales price limit only applies if originating with an MCC, Plus Second Mortgage, or DPA Grant).
  • Conventional No MI no longer requires special lender delegation! If you are delegated on other programs like Government and Conventional, you are now delegated on the Conventional No MI too!
A draft of the program guidelines is provided to help prepare for this upcoming change. The final version will be published when the program is available and we will convey any changes. Please read in detail.

Documentation Changes

The following Virginia Housing documents have been revised to reflect the Conventional name change. All will be available on our website or in Mortgage Cadence in September.

  • Award Letter (for DPA Grant and Plus Second Mortgage, Mortgage Cadence generates for both Conventional and FHA first mortgage financing)
  • Obligation Letter (for DPA Grant and Plus Second Mortgage, Mortgage Cadence generates for only FHA first mortgage financing)
  • Underwriting Submission Checklist (for non-delegated loan submissions)
  • Loan Stacking Form (for submission of all closed loan packages)
  • Program Disclosure and Borrower Affidavit (Exhibit E)
        • The Exhibit E is attached since some of you include it in your system generated origination package. We hope providing this to you before the program release is beneficial. It is acceptable to begin using this updated Exhibit E immediately (replacing the Exhibit E2) and we will communicate when this must be used soon.
The Fannie Mae HFA Preferred with Reduced MI and Fannie Mae No MI programs will be
phased out in September upon release of the new conventional programs.

Estimated Program Release

We estimate the new Virginia Housing Conventional and Conventional No MI programs will be available on or about September 15, 2020. A separate notice with final details will be issued to all Virginia Housing lender contacts prior to the release date.

Training Webinars

Virginia Housing will offer training to learn more about these exciting new programs,including requirements, forms, and registration/lock changes. We will communicate when they’re available soon. Lenders should have representatives from each operational area attend one of these sessions.

Questions?

Please contact your assigned Virginia Housing Business Development Officer:

Regina Pinkney
Northern Region
Business Development Officer
804-343-5748

Gigi Houchins
Eastern Region
Business Development Officer
804-343-5609

Dan Kern
Business Development & Training Manager
804-343-5992


Joni Moncure
Central Region
Business Development Officer
804-343-5595

Frank Webster
Western Region
Business Development Officer
804-343-5668


Or the contacts below:

Melissa Whitlow - Loan Programs Underwriting Manager

Mindy Hall-Sexton - Loan Programs Manager


Contact Us

Homeownership Program Department

Toll free: 800-227-8432
Local: 804-783-6725
Homeownership Staff Directory

 

Customer Service

Toll Free: 877-VHDA-123 
Local: 804-782-1986 

 

Virginia Relay

In Virginia: 711
Toll Free: 800-828-1140

 

Virginia Housing Fraud, Waste or Abuse Hotline

Phone: 804-915-3146
Email: InternalAudit@VirginiaHousing.com
Website: Reporting Fraud, Waste or Abuse