VHDA Loans – General Information

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The Virginia Housing Development Authority offers a variety of mortgage packages to qualified buyers. VHDA loans are common in RVA. Usually mortgages funded by VHDA help first-time homebuyers, however, current and previous homeowner may also qualify for specific VHDA loans.

Currently, some of the mortgages and loan combos offered by VHDA are conventional, VA, FHA, and USDA Rural Housing programs. In order to qualify, you’ll need to follow the guidelines set forth by the VHDA. You will find VHDA mortgages attractive, so you should use a VHDA qualified lender to guide you through the qualification process.

BELOW IS SOME OF GENERAL LOAN INFORMATION AND REQUIREMENTS FOR VHDA LOANS

Maximum Income Limits

For starters, VHDA implements maximum income limits, in addition to other criteria for loan approval.  VHDA’s income limits are based on a combination of product usage, household size, and geography. In certain areas of Virginia, the average income limit varies. However, the maximum household income for 2 or fewer people in RVA is $98,400 without any grant money for down payment and closing cost assistance.

Maximum Sales Price and Loan Amount

Along with income limits, VHDA also has different sales price and loan limits throughout Virginia. Therefore, the loan amount and sales price must fall below the VHDA’s published loan limits for the location where the property is located. The maximum loan amount in RVA is $425k for new and exisiting construction.

Previous Homeownership

As stated above, VHDA offers programs and specific mortgages for both first-time homebuyers and current homeowners. However, the majority of VHDA loan programs are for first time homebuyers. Keep in mind that a first time homebuyer is defined as a person who has not owned a primary residence for at least three years.

FREE Homebuyer Education

VHDA requires borrowers to complete a FREE homebuyer class prior to submitting a loan application. All borrowers are required to complete the class to become eligible to all VHDA loans. VHDA teaches the financial management skills that are necessary for home ownership.

Property Use

Borrowers required to detail how they intend to use the property that they are seeking financing to purchase. VHDA requires the property to be the buyers primary residence, not as a trade or business.

Maximum Net Worth

A borrower’s net worth is an important requirement provided in VHDA’s lending criteria. Generally, to be eligible for VHDA loan programs, your net worth must not exceed 50 percent of the sales price of the property being financed. Contact an approved provider VHDA loan officer for more details.

Areas of economic opportunity

Borrowers who are seeking loans to purchase homes in federal targeted areas can be exempted from some of VHDA’s loan requirements such as previous ownership, maximum income, sales price, and loan limits. Click here to see a map of the areas of economic opportunity.

Recapture Tax

Formally know as the federal recapture tax. Basically, if you’re a first time homebuyer, a Mortgage Credit Certificate could save you thousands of dollars in federal taxes. However the program states that if the property is sold within nine years of purchase, then the federal subsidy may be “recaptured.” Therefore, you need to be prepared to live in the property for 10 years or more if you use the MCC.

Maximum Lot Size – Lots more than 2 acres

Lastly, VHDA says that the lot size must not exceed 2 acres if you want to qualify. However, you can get a waiver for up to but not more than 5 acres. Therefore, you need to be considerate of this when you’re home shopping.

Contact a VHDA approved lnder today to learn more about loan programs. Learn how to apply for a VHDA mortgage here!