Virginia First-Time Home Buyer Programs of 2019 – Helping YOU be in the KNOW!!

A conventional mortgage is a home loan that isn’t guaranteed or insured by the federal government. Conventional mortgages that conform to the requirements set forth by Fannie Mae and Freddie Mac allow down payments as low as 3% for first-time buyers or lower-income home buyers. Unlike FHA loans, Read More

WHAT YOU NEED TO KNOW

This is the go-to program for many first-time home buyers with lower credit scores. The Federal Housing Administration allows down payments as low as 3.5% for those with credit scores of 580 or higher. The FHA will insure loans for borrowers with scores as low as 500 but requires a 10% down payment Read More

WHAT YOU NEED TO KNOW

The U.S. Department of Veterans Affairs helps service members, veterans and surviving spouses buy homes. VA loans are especially generous, providing competitive interest rates, often requiring no down payment or mortgage insurance. Although there is no official minimum credit score, most Read More

WHAT YOU NEED TO KNOW

A USDA home loan is a zero-down-payment mortgage for eligible rural and suburban home buyers. USDA loans are issued by the U.S. Department of Agriculture through the USDA Rural Development Guaranteed Housing Loan Program. There are income limitations, which vary by region. Applicants with credit Read More

WHAT YOU NEED TO KNOW

This is perhaps the most meaningful benefit offered by the VHDA. Qualified first-time buyers can receive up to 2.5% of a home’s purchase price to apply to a down payment — no repayment required. The grant is combined with a VHDA loan, and household income limits are considered.

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For military members or veterans with service-connected disabilities, this program offers a grant of up to $4,000 to pay for home modifications that increase accessibility, such as widening doorways and adding wheelchair ramps.

WHAT YOU NEED TO KNOW

The VHDA issues Mortgage Credit Certificates to qualified home buyers who receive a loan commitment through an approved lender. It’s a dollar-for-dollar federal tax credit that may reduce your tax liability. And it’s valid for the life of your loan, while the home remains your primary residence.

WHAT YOU NEED TO KNOW

This program is for first-time buyers or homeowners looking to “move up.” The down payment can be 3% — even lower, with a VHDA down payment grant (see below). While this program requires a borrower to pay for mortgage insurance, the premium is discounted. You’ll need a credit score of at least 640 Read More

WHAT YOU NEED TO KNOW

Identical to the Fannie Mae Preferred program in most respects, but you won’t have to pay mortgage insurance. That likely means your interest rate will be a tad higher. And your credit score needs to be slightly better, too: 660.

WHAT YOU NEED TO KNOW

FHA-backed loans are the go-to mortgage program for first-time home buyers. It seems VHDA has made them even better with this program. Rather than the standard 3.5% FHA down payment, a built-in second mortgage allows up to 100% financing. While a minimum 620 credit score is required, a higher score Read More

WHAT YOU NEED TO KNOW

USDA loans also offer zero down payments on homes in rural and suburban areas. The VHDA participates in a pilot program that allows the financing of existing manufactured housing up to 10 years old. USDA previously financed only new manufactured housing.