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Homebuyer Programs

Homeownership Made Affordable

Looking for the VHDA loan that’s right for you? VHDA offers a variety of affordable home mortgages. All are 30-year fixed rate loans. Some don’t require any downpayment; some allow for lower credit scores; and some offer an MCC to help reduce federal taxes. VHDA makes homeownership affordable through our "VHDA Loan Combo," a down payment grant, plus an MCC (a federal tax credit for homebuyers), plus our free homebuyers class. All loans have maximum income and sales price limits and/or loan limits, which vary according to where the home is located.

 

Program
Benefits
Features
Fannie Mae (FNMA) HFA Preferred with Reduced Mortgage Insurance (MI) (Conventional)
  • Low 3% down payment required
  • Affordable monthly payment
  • Helps existing homebuyers “move up”
  • As low as 1% down with VHDA DPA Grant
  • Could help to reduce existing mortgage payment
  • 97% maximum financing
  • Lowest mortgage insurance requirements
  • Available for first-time and repeat buyers
  • Eligible for VHDA’s Down Payment Assistance grant (DPA) (restrictions apply)
  • Eligible for Mortgage Credit Certificate (MCC) (restrictions apply)
  • Available for limited cash-out transactions as well as purchases
  • 640 minimum credit score
Fannie Mae 97% No Mortgage Insurance (MI)(Conventional)
  • Low 3% down payment required
  • Affordable monthly payment
  • Helps existing homebuyers “move up”
  • As low as 1% down with VHDA DPA Grant
  • Could help to reduce existing mortgage payment
  • Monthly payment is lower than other government/conventional loan programs
  • 97% maximum financing
  • No monthly mortgage insurance requirement
  • Available for first-time and repeat buyers
  • Eligible for VHDA’s Down Payment Assistance grant (DPA) (restrictions apply)
  • Eligible for Mortgage Credit Certificate (MCC) (restrictions apply)
  • Available for limited cash-out transactions as well as purchases
  • Low payments can qualify for larger home
  • 660 minimum credit score

 

FHA
  • FHA insured.
  • Low down payment.
  • Liberal credit qualifying.
  • As low as 1% down with VHDA DPA Grant
  • 3.5% downpayment.
  • Credit Scores as low as 620.
  • VHDA DPA Grant Eligible.
  • Eligible for Mortgage Credit Certificate (MCC)
VA
(Veterans Administration)
  • VA guaranteed.
  • $0 down payment required for eligible veterans.
  • Liberal credit qualifying
  • 100% financing.
  • Eligible for Mortgage Credit Certificate (MCC).
  • Credit scores as low as 620.
USDA
(Rural Housing Service)
  • USDA guaranteed.
  • $0 required for eligible rural properties.
  • Lower monthly payments
  • 100% financing.
  • Low mortgage insurance
  • Eligible for Mortgage Credit Certificate (MCC)
VHDA Plus Second Mortgage
  • Eliminates funds needed for a down payment
  • Helps to keep total mortgage payment affordable
  • Could eliminate funds needed at closing
  • Increases homeownership for first-time and specific repeat buyers
  • Higher income limits assist buyers who don’t qualify for grant funds
  • Can be paired with Mortgage Credit Certificate (MCC) program
  • 0% downpayment
  • 2nd mortgage is a 30-year fixed rate
  • Qualified homebuyers can borrow 1.5% more than the sales price
  • Eligible for first-time buyers and repeat buyers purchasing in Federal Targeted Areas
  • VHDA standard income limits apply
  • First time buyer required
  • Minimum credit score: FHA 620 | Fannie Mae 640 | Fannie Mae No MI 660
Down Payment Assistance Grant
  • Reduces funds needed for a Down Payment.
  • No repayment required 
  • Reduces monthly housing payment
  • Can be paired with MCC
  • 1% down payment
  • Grant is a true gift
  • Can be paired with other non-VHDA down payment
  • First time buyer required

Mortgage Credit Certificate

  • Could lower federal income taxes owed
  • No cost to homebuyer to receive
  • Reduces cost of homeownership
  • First time buyer required
  • When used with a VHDA first Mortgage product and approved VHDA Lender
  • Tax credit can be taken for life of loan*

 

*Assumes that the property remains a principal residence, the VHDA loan is still outstanding, and there is an actual federal tax liability

 

 

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