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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*