VHDA Grant Program - 2016
Grant Program provides your downpayment!
When considering home ownership many people are intimidated by the need to have a large cash down payment available at closing. The Virginia Housing Development Authority is the Leading Mobilizing Force for Affordable Housing and they are making money available, up to $13,000 per borrower in Hampton Roads, to cover the down payment on home purcahses for qualified buyers. Buyers may be required to bring up to 1% of the purchase price to closing along with cash for other closing costs.
What Does Grant Mean?
The borrower is under no obligation to repay the grant (No Note or Deed of Trust is executed for these funds). This is not a loan, it is free money!
Grant amounts will be limited to 3% of the lesser of purchase price or appraised value for VHDA No MI Loans and 3.5% of the lesser of purchase price or appraised value for VHDA FHA Loans.
For a $250,000 home, that is $8,750 for a down payment!
The down payment grant is typically sufficent to cover the entire down payment (but not all closing costs).
Borrowers will need to be approved for either a VHDA No MI or VHDA FHA loan to receive a grant.
VHDA No MI Loans are 30 year fixed rate loans with no MI (mortgage insurance) and available for up 97% of the purcahse price.
VHDA FHA Loans are 30 year fixed rate loans insured by FHA (Fedeal Housing Authority). Loan limit is determined by FHA guidelines.
Each of these loan products have additonal qualifications and requirements. Call 800-323-5746 to learn more.
Grant funds may not be used in combination with other down payment assistance resources (including FHA Plus). Available for down payment only (cannot be used for closing costs).
VHDA 1st Mortgage Eligibility:
- First time homebuyers (No prior ownership during previous 3 years.)
- Who intend to occupy the property
- Not use home in trade or business
- Lot size limited to 2 acres (waivers possible up to 5 acres)
- Can demonstrate creditworthiness
- Making less than the maximum income requirements
- Sales price limits may apply
- Debt to income ratio limits may apply
- And complete VHDA's Homeownership Education class.
Total annual household income of no more than 80% of VHDA's current income limits.
• For families of 2 or less the income limit will be $64,320*
• For families of 3 or more the income limit will be $75,040*
In Hampton Roads (Noroflk, Virgina Beach, Newport News, Hampton, Chesapeake, Suffolk) the home sales price is limted to $375,000*. Other areas of the state have other limits.
These figures are accurate at time of publication, but are subject to change.
When will the program end?
Funds are available on a first-come, first-served basis, so contact us today!
VHDA is a not-for-profit organization created by the Commonwealth of Virginia in 1972 to help Virginians attain quality, affordable housing witin the commonwealth. VHDA offers a variety of home loans to first-time homebuyers designed to meet the needs of today's borrowers.
How to get started
Call SimonTowne Mortgage at 800-323-5746 and ask about applying for a VHDA grant. Our mortgage experts will personally guide you through each step.
You are welcome to use any lender that you trust, but we recommend SimonTowne Mortgage because they are well recognized and respected in the Hampton Roads area.
We currently have two loan officers on our mortgage team: Sherry Reid and Brad Schloss. You can contact them by filling out the Get Prequalified form or by calling our mortgage hotline – 800-323-5746.