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.
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Program
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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 reduce federal taxes owed
- Could help to reduce existing mortgage payment
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- 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
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| 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 reduce federal taxes owed
- Could help to reduce existing mortgage payment
- Monthly payment is lower than other government/conventional loan programs
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- 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
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| FHA Plus |
- FHA-fixed first mortgage
- 100% financing, no downpayment cash needed with FHA Plus 2nd mortgage
- Second mortgage 3.5% - 5.00% based on credit score
- Low payments on second mortgage.
- Could reduce federal taxes owed
- Liberal credit qualifying
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- Low 30-year fixed interest rate
- Second mortgage covers all required downpayment
- Credit scores 680 and greater can receive additional funds for closing costs
- Second mortgage for 30-year term
- Eligible for Mortgage Credit Certificate (MCC)
- Credit scores as low as 620
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| FHA |
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VA
(Veterans Administration) |
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USDA
(Rural Housing Service) |
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