UPDATE: I understand that few lenders are offering this 2nd mortgage program, due to the difficulty of updating financial disclosure software to accomodate this temporary program.
For Virginia prospective homebuyers who have not owned a home in the last three years and otherwise qualify, VHDA is offering a second mortgage that will fund the FHA 3.5% downpayment, and it can be used as an advance on the $8000 Federal tax credit.
I’m attaching the VHDA flier detailing the program, but here are highlights and more links:
Home price: Must not exceed VHDA maximum for area; $293,900 is the maximum for the Charlottesville MSA
Income: Must not exceed VHDA maximum
For the Charlottesville MSA, the income maximum is $63,300 for 1-2 people or $73,000 for households of 3 or more;
Qualifying Ratios: 31% income/ 43% debt
Credit Score minimum: 620
Assets: Borrower MUST have 1% of the purchase price verified in a bank account as their own funds.
Income and Sale Price Limits vary by region.
VHDA Homeownership Class is Required, and,
Can be taken online, with 30 days to complete.
To check current VHDA rates (remember to click the “more financing options” link for other rate/point combinations).
