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 Can I get pre-approved for a mortgage before finding a home?
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Yes. It's a good idea to get pre-approved prior to shopping for a home. This helps you to understand what you can afford, and puts you in a great position to negotiate with a potential seller. Contact a lender near you to get pre-approved. |
| Do you refinance loans for current homeowners?
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VHDA has several conventional loan programs (Fannie Mae No Mortgage Insurance and Fannie Mae Reduced Mortgage Insurance) that can be refinanced through one of our approved lenders. Find an approved lender in your area on our website. |
| Does VHDA have programs for buyers with credit issues?
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VHDA offers government-insured programs (FHA, VA, USDA Rural Development) that allow the most flexibility for borrowers who have experienced credit problems. Our minimum credit score on these programs is 620. If you are experiencing current credit issues, please visit the housing counseling section of our website. |
| How do I apply for a VHDA mortgage?
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Applications are made through our statewide network of approved mortgage lenders who can give all the facts about our various loans. They can also pre-qualify you so that you’ll know the approximate price range of homes to shop for. Your lender will also complete all necessary paperwork to approve the loan, and assist your real estate agent and closing agent in coordinating your loan closing. Find a lender near you. |
| How do I contact VHDA’s Homeownership Area?
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Call us toll free: 800-227-8432
Wytheville office: 800-447-5145
Mortgage Servicing (existing customers): 800-235-6938
Homeownership Education: HousingEducation@vhda.com
Our mailing address is: 601 S. Belvidere St., Richmond, VA 23220 |
| How do I register for a free Homebuyer class?
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| How long does the mortgage process take?
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From the time of application to closing, the mortgage process typically takes between 30 to 60 days. This time frame depends upon several factors, including the individual lender's process and any potential credit or property issues. |
| Is a home inspection required for a VHDA-financed property?
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Although a home inspection isn’t required for our loans, it is highly recommended. A home inspection performed by a qualified inspector provides full disclosure of the property’s current condition and allows potential problems to be resolved before the sale. This results in fewer problems after closing. |
| Is the seller required to pay any of the closing costs for VHDA mortgages?
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No. However, it is not unusual for a buyer to ask the seller to pay some of the closing costs. |
| What are points?
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Points are fees charged by a lender to reduce the initial interest rate. Points are a percentage of the loan amount; one point is equal to one percent of the loan amount. Points are considered prepaid interest and are usually tax-deductible. Generally, the more points you pay, the lower your interest rate. |
| What are the eligibility requirements for VHDA loans?
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Loan applicants must intend to occupy the property and demonstrate creditworthiness, sufficient stable income and adequate funds for the down payment and closing costs. In addition, all borrowers must complete VHDA's Homebuyer Education Class. Loan programs limit the borrower's income, sales price and loan amount. Find additional information regarding eligibility requirements on our website.
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| What are the income and sales price/loan limits for VHDA programs?
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| What information will I need to apply?
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Being prepared for the loan application reduces the time it takes to have your loan reviewed and approved. You should be able to provide:
- Copy of current pay stubs for the most recent 30-day period.
- Copies of W-2 forms for the most recent two years.
- Account numbers for bank accounts and loans.
- Copies of recent bank statements.
- Copy of divorce decree/separation agreement (if applicable).
- Copy of bankruptcy filing and discharge (if applicable).
- Copy of real estate contract for purchase of home.
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| What is an Annual Percentage Rate (APR)?
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The APR is a method of calculating mortgage cost stated as a yearly rate. The APR includes items such as interest, mortgage insurance premiums and points. |
| What is Private Mortgage Insurance (PMI)?
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Mortgage Insurance protects a lender if a borrower defaults on a loan. Mortgage insurance is placed on the loan when the borrower does not have a sufficient amount of equity or down payment. For a conventional loan, private mortgage insurance is required on all loans if you are borrowing more than 80 percent of the purchase price. For FHA loans, mortgage insurance is required on all loans, regardless of the amount of the down payment. |
| What is the Recapture Tax?
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First-time buyers who receive VHDA’s Mortgage Credit Certificate, may be subject to a Federal Recapture Tax. This tax only affects buyers who have rapid and significant increases in income and sell or transfer their home within nine years of the purchase date. It is suggested potential buyers contact a tax advisor or the IRS for more information concerning the possibility of the payment of Recapture Tax. Find more information about the Federal Recapture Tax on our website. |
| What makes up a monthly mortgage payment?
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Your monthly mortgage payment includes a payment on the principal balance of your loan, an interest payment and your escrow payment (monthly payments collected to pay your hazard insurance, mortgage insurance, flood insurance and property taxes.) This is commonly referred to as PITI (principal, interest, taxes and insurance.) |
| What mortgage loans does VHDA have available?
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We offer a variety of financing programs designed to meet the unique needs of first-time homebuyers. The low interest rate of VHDA mortgages combined with favorable underwriting guidelines make our loans a great choice for new homebuyers. Select a link for additional information. You can review a list of our home loans and down payment assistance programs. |
| Where can I find VHDA’s interest rates?
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VHDA no longer provides interest rates. Please contact one of our approved lenders to discuss interest rates and loan programs that you may qualify for. |