Virginia first time home buyer, here’s 3 programs you should know about
Buying a home in Virginia? First-time Homebuyer programs can help more than you think.
We all know the narrative – rates are higher than they’ve been in some time, and economic uncertainty is looming.
Virginia first time home buyer programs are available to help.
Now may be a better time to buy than you think.
3 Virginia Homebuying Programs You Should Know About
VDHA FHA Loan with DPA Grant
What does this alphabet title even mean? VDHA is the Virginia Housing Development Authority and DPA is Down Payment Assistance.
This program allows a buyer to apply for a 30-year fixed rate FHA mortgage with free down payment assistance up to 2.5% of your property’s purchase price.
Why is this handy now?
Cash on hand matters to buyers in this market.
You can take advantage of this Virginia first time home buyer program to put down less money now while rates drop over the coming years.
This product does have income and sales price limits; however, both are quite generous.
FHA Purchase with a VDHA Plus Second Mortgage
This product from the VDHA offers a 30-year fixed rate FHA mortgage closed simultaneously with a down payment assistance second mortgage.
Based on credit score and other qualifications, a buyer can use the second mortgage to cover up to 5% of closing costs or down payment.
Through this Virginia first time homebuyer program, buyers may qualify for a Mortgage Credit Certificate (MCC) which allows for 90% of the yearly interest to qualify as a tax deduction.
Fannie Mae No MI with a VHDA Plus Second Mortgage
No down payment, no mortgage insurance!
This program offers buyers a Fannie Mae conventional 30-year fixed rate first mortgage closed simultaneously with a second mortgage.
In addition, this program allows buyers a no down payment option with no mortgage insurance required.
The second mortgage provides 3% to 4.5% down payment assistance which covers the federally required 3% down on the first mortgage.
The best part?
This Virginia first time homebuyer program is eligible for a DPA Grant or MCC.
These programs are in place because they truly help first time home buyers to buy now.
Rates are higher than they were over the past few years, but it may be a smarter investment to use your rental dollars to create equity in real estate now.
The rate hikes we are seeing will subside in the coming months, and there is great optimism that rates will begin to fall in 2023.
If you invest now, it is likely you will be able to refinance in the near future, all while retaining your bank account to make it through the present uncertainty unscathed.
Local mortgage lenders are available to help guide you through the process.