Virginia First-Time Homebuyer Programs
Individual Development Accounts:
Borrowers in Virginia looking to purchase a home for the first time have options available to them. If you qualify for the VIDA Program, which stands for Virginia Individual Development Account, you can receive funds matching up to $4000 into a bank account. For every $1.00 you deposit, you would receive a match of $2.00. This program is often used in conjunction with the Neighborhood Stabilization Program (NSP), or the Virginia Enterprise Initiative (VEI). There are strict income guidelines involved with utilizing this program. For example, a family of 3 cannot make more than $40,180 annually.
Down Payment Assistance:
Utilizing the DPA (Down Payment Assistance) program in Virginia, borrowers may receive a “down payment loan” ranging from 10-20% of the sales price of the home, which the state of Virginia forgives after a time frame of 5-15 years. Borrowers may also qualify for up to $2,500 in closing costs. First time buyers need have an income that is less than 80% of the median income for certain parts of the state.
Virginia Housing Development Authority Loans:
There are loans offered through the Virginia Housing Development Authority, which is a statewide program which have lower rates and fixed terms. One of the variations of the program will cover the closing costs. The loans range from FHA, FHA Plus, VA, Conventional Fixed, and RHS. There are limitations which include being a first-time homebuyer, usage of property, creditworthiness, lot size, and income/property price limitations.
Moderate-Income Purchase Assistance Program:
The Moderate-Income Purchase Assistance Program offers a deferred payment, no interest loan to borrowers in Arlington only. The loan amount will be up to 25% of the home purchase price. The property value must me less than $362,790 and the maximum amount of the loan would be $90,700. The intended use of the loan is to cover closing costs and a portion of the down payment. There is also a shared appreciation aspect of this loan, which means that at the time of sale, up to 25% of the appreciation of value would then be paid back to the County.