Virginia Housing

The Virginia Housing Development Authority (VHDA) is a key resource for individuals seeking to achieve homeownership in Virginia. Recently, VHDA introduced groundbreaking changes aimed at expanding accessibility to their programs, notably eliminating the first-time homebuyer requirement which opens opportunities for a broader range of buyers. Addit... ionally, VHDA offers a 2% grant program, providing financial assistance towards down payments and closing costs, easing the financial burden of purchasing a home. Another noteworthy initiative is the VHDA Plus program, which offers 100% financing, and some buyers may even qualify for an additional 1.5% in funds to be applied toward closing costs. Through the recent guideline changes, VHDA is enhancing affordability and making homeownership dreams more achievable for Virginians. In one example Bonnet shared, a qualified buyer using the Virginia Housing (VH) Plus program could purchase a $300,000 condo with a first mortgage of $291,000 and a second mortgage of $13,500 for total financing of $304,500. That means the buyer can finance $4,500 of the total closing costs, leaving them with a cash requirement of roughly $8,200. In another example, for a $500,000 townhouse with a first mortgage of $485,000 and a second mortgage of $22,500, the borrower's cash needed is approximately $7,900. In both scenarios, buyers do need cash funds, but as seen in these examples, the amount required was less than $10,000, much lower than many buyers expect they'll need.Read More