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.
Download our Home Loan Options eBook for a quick overview of all our mortgages, grants and programs for homebuyers! Just click any tab on the side to get started.
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|
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 Plus Second Mortgage.
- 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 Plus Second Mortgage
- 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 |
|
-
3.5% downpayment.
-
Credit Scores as low as 620
-
Eligible for VHDA's Down Payment Assistance grant (DPA).
-
Eligible for VHDA's Plus Second Mortgage
- Eligible for Mortgage Credit Certificate (MCC)
|
VA
(Veterans Administration) |
|
-
100% financing
-
Credit scores as low as 620
-
Eligible for VHDA's Closing Cost Assistance (CCA) grant
-
Eligible for Mortgage Credit Certificate (MCC)
|
USDA
(Rural Housing Service) |
|
|
| VHDA Plus Second Mortgage |
|
-
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
|
| Down Payment Assistance Grant (DPA) |
|
|
|
Closing Cost Assistance (CCA) Grant |
- Could eliminate funds needed for closing
- No repayment required
- Can be paired with Mortgage Credit Certificate (MCC)
|
- First-time buyer required
- Grant is a true gift
- Can be paired with other non-VHDA assistance
|
|
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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