First time home buyers now have a new way to get help with down payments when buying a home in Virginia. The VHDA is a quasi-government agency created in 1972 by the Virginia General Assembly. The VHDA raises their own funds to help Virginians attain quality, affordable housing through public-private partnerships and also administer the federal Housing Choice Voucher and Housing Credit programs in Virginia.

The new down payment assistance grant helps bridge the gap between the 3.5% down payment traditionally associated with FHA loans. Unlike the FHA Plus loan which allows borrowers to take the down payment out as a second loan, the VHDA down payment grant does NOT need to be repaid by the home buyer. The grant can cover 2-2.5% of the sales price of the home but cannot be combined with any other program.

There are some eligibility guidelines. Buyers must have a minimum 640 credit score with a maximum 41% debt to income ratio. That means all of your debts including your mortgage cannot be more than 41% of your income. All buyers must also have household incomes within the limits set for each county and buy a home that fits within the maximum sales price. A table is included below that shows these limits.

All borrowers receiving this grant are also eligible for a Mortgage Credit Certificate (MCC). An MCC is a dollar-for-dollar credit against your federal income tax liability, in this case borrowers get a 20% credit on the mortgage interest they pay each year.

Contact me to get more information on this great program, 540-999-8826.

 Max Household Income 1-2 PeopleMax Household Income 3+ PeopleMax Sales Price/Loan Limit
Wash/Arlington/Alexandria *$97,520$113,840$500,000
Charlottesville *$74,080$86,480$375,000
Richmond *$68,000$78,720$375,000
Norfolk/VA Beach/Newport News *$64,320$75,040$375,000
Culpeper$74,720$87,200$425,000
Rappahannock$74,640$87,120$425,000
Warren$68,800$80,320$425,000
King George$74,080$85,520$325,000
All Other Areas$58,880$67,680$252,900

Featured Homes Eligible for VHDA Grant in Winchester Area

Washington, Arlington, Alexandria:
Alexandria, Arlington County, Clarke County, Fairfax, Fairfax County, Falls Church, Fauquier County, Fredericksburg, Loudoun County, Manassas, Manassas Park, Prince William County, Spotsylvania County, Stafford County

Charlottesville:
Albemarle County, Charlottesville, Fluvanna County

Richmond:
Amelia County, Caroline County, Charles City County, Chesterfield County, Colonial Heights, Dinwiddie County, Goochland County, Hanover County, Henrico County, Hopewell, King William County, New Kent County, Petersburg, Powhatan County, Prince George County, City of Richmond, Sussex

Norfolk-Virginia Beach-Newport News:
Chesapeak, Gloucester County, Hampton, Isle of Wight County, James City County, Mathews County, Newport News, Norfolk, Poquoso, Portsmouth, Suffolk, Virginia Beach, Williamsburg, York County, Greene County, Nelson County

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