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Announcing the ‘New’ VHDA Plus Second Mortgage

To: VHDA Originating Lenders
Re: Announcing the ‘New’ VHDA Plus Second Mortgage

Introducing the new VHDA Plus Second Mortgage

In order to offer down payment assistance to more homebuyers, VHDA has created a new second mortgage product called the “VHDA Plus Second Mortgage”. This product will have a 30 year term and can be used with either a VHDA FHA first mortgage or VHDA’s two Fannie Mae first mortgage programs. The VHDA Plus Second Mortgage is similar to the original FHA Plus model. When used with a VHDA FHA first mortgage, the maximum second mortgage will be 3.5% of the sales price for credit scores below 680 and 5% for credit scores equal to or above 680. If paired with either of VHDA’s Fannie Mae first mortgage programs the maximum second mortgage amount will be 3% for credit scores below 680 and 4.5% for credit scores equal to or above 680.

This program will be available on and after 08/15/2018, at which time the FHA Plus Loan Program will be retired.

Pricing Adjustments and Daily Rate Sheets
With the retirement of the FHA Plus, daily rate sheets will be revised. Instead of providing individual pricing for first mortgage programs with a VHDA Plus Second Mortgage, we will adopt an interest rate adjustment model that varies depending on the first mortgage program selected. FHA loans will have +.25% interest rate adjustment when paired with a VHDA Plus Second Mortgage and Fannie Mae Loans will have +.125% interest rate adjustment. The interest rates available for the VHDA Plus Second Mortgage will mirror those of the first mortgage

Program details and procedures are available on vhda.com. See the VHDA Plus Second Mortgage Program Guidelines for more information.

Revised Documents
Several VHDA documents have been updated to adequately reflect the changes for the new VHDA Plus Second Mortgage. Click here for more information on all updated documents.

Be on the lookout for a second announcement coming later this week with great news on other program enhancements!

Training Webinars
To learn more about this new exciting product, VHDA will be offering VHDA Plus Second Mortgage 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 this new and exciting loan program.


Please contact your assigned VHDA Business Development Officer or underwriting@vhda.com if you have any questions.

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