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We've compiled answers to your common questions. Click a question below to get the information you need.
How do I apply for a VHDA mortgage?
What information will I need to apply?
What is an Annual Percentage Rate (APR)?
What mortgage programs does VHDA have available?
How do I find a VHDA lender?
What is the Homeownership Tax Credit? New!
How do I contact VHDA's Homeownership Division?
What are points?
Can I apply for a mortgage prior to finding a home?
What is Private Mortgage Insurance (PMI)?
What comprises a monthly mortgage payment?
How do I register for a Homeownership Education Class?
How long does the mortgage process typically take?
Is the seller required to pay any of the closing costs for VHDA mortgages?
What are the eligibility requirements for VHDA loans?
What is the Recapture Tax?
Does VHDA have programs for buyers with credit issues?
Do you refinance loans for current homeowners?
What are the maximum loan limits for VHDA loans?
What are the income limits for VHDA programs?
Where can I find VHDA's current interest rates? How often do these rates change?
Is a home inspection required for a VHDA-financed property?
How do I apply for a VHDA mortgage?
Applications can be made through VHDA's statewide network of approved mortgage lenders. These lenders can provide you information on the various VHDA programs and pre-qualify you so that you will know the approximate price range of homes to shop for. The lender will complete all necessary paperwork to approve the loan and assist in the coordination of your loan closing with your Realtor and closing agent. Click here to find a lender near you.
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What information will I need to apply?
Being prepared for the loan application with the following information will reduce the time it takes to have your loan reviewed and approved:
- Copy of current pay stub
- Copy of real estate contract for purchase of home
- Account numbers for bank accounts and loans
- Copies of recent bank statements
- Copies of previous three years tax returns
- Copies of divorce decree/separation agreement (if applicable)
- Check for credit report, appraisal and VHDA reservation fee (approx. $500.00)
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What is an Annual Percentage Rate (APR)?
An APR is a method of calculating mortgage cost stated as a yearly rate. The APR includes items such as interest, mortgage insurance premiums and points.
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What mortgage programs does VHDA have available?
First-time Homebuyer Programs
VHDA offers a variety of financing programs designed to meet the unique needs of first time homebuyers. The low interest rate of the VHDA mortgage combined with favorable underwriting guidelines make VHDA loans a great choice for new homebuyers. Select a link for additional information.
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How do I find a VHDA lender?
VHDA's loan programs are available from more than 100 lending institutions with more than 500 branches statewide. Click here to find a lender near you.
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How do I contact VHDA's Homeownership Area?
Click here to contact us via e-mail
VHDA Toll Free (800) 227-8432
Wytheville Office (800) 447-5145
Mortgage Servicing (Existing Customers) (800) 235-6938
Homeownership Education (888) 643-2696
Address:
Virginia Housing Development Authority
601 S. Belvidere St.
Richmond, VA 23220
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What are points?
Points are fees charged by a lender to reduce the initial interest rate. Points are a percentage of the loan amount; one point is equal to one percent of the loan amount. Points are considered prepaid interest and are generally tax deductible. Generally, the more points you pay, the lower your interest rate, while fewer points paid will result in a higher interest rate.
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Can I get pre-approved for a mortgage prior to finding a home?
Yes! It's a good idea to get pre-approved prior to shopping for a home. This helps you to understand what you can afford, and puts you in a great position to negotiate with a potential seller. Contact a lender near you to get pre-approved.
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What is Private Mortgage Insurance (PMI)?
Mortgage Insurance protects a lender if a borrower defaults on a loan. Mortgage insurance is placed on the loan when the borrower does not have a sufficient amount of equity or down payment. For a conventional loan, private mortgage insurance is required on all loans if you are borrowing more than 80% of the purchase price. For FHA loans, mortgage insurance is required on all loans, regardless of the amount of the downpayment.
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What comprises a monthly mortgage payment?
Your monthly mortgage payment includes a payment to the principal balance of your loan, the interest payment and your escrow payment (monthly payments collected to pay your hazard insurance, mortgage insurance, flood insurance and property taxes.) This is commonly referred to as P.I.T.I. (principal, interest, taxes and insurance.)
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How do I register for a Homeownership Education Class?
To register for a class, follow these steps:
- Click here to search the calendar of classes for a time and location that meet your needs.
- Click the link associated with a class date to view information regarding whom to contact for registration.
More on Homeownership Education
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How long does the mortgage process typically take?
In general, the mortgage process takes between 30 to 60 days from the time of application to closing. This time frame is dependent upon a number of factors including the individual lender''s process and any potential credit or property issues.
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Is the seller required to pay any of the closing costs for VHDA mortgages?
No, the seller is not required to contribute to the closing costs for VHDA loans. However, it is not unusual for a buyer to ask the seller to pay some of the closing costs.
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What are the eligibility requirements for VHDA loans?
Loan applicants must intend to occupy the property, demonstrate creditworthiness, sufficient stable income and adequate funds for the downpayment and closing costs. In addition, all borrowers must complete VHDA's Intro to Homeownership course. Loan programs limit the borrower''s income, sales price and loan amount. Click here for additional information regarding eligibility requirements.
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What is the Recapture Tax?
Homes funded by one of our special First-time homebuyer programs (30-year Fixed Rate Mortgage, FHA Plus) may be subject to a Federal Recapture Tax. This tax only affects buyers who have had rapid and significant increases in income and who sell or transfer their home within nine years of the purchase date.
Click here for an Online Recapture Calculator.
It is suggested potential buyers contact a tax advisor or the IRS for more information concerning the possibility of the payment of a Recapture Tax. Click here for an IRS explanation of the recapture of federal subsidy.
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Does VHDA have programs for buyers with credit issues?
VHDA offers FHA insured programs. FHA programs allow the most flexibilities for borrower(s) who have experienced credit problems.
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Do you refinance loans for current homeowners?
VHDA doesn't refinance loans
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What are the maximum loan limits for VHDA loans?
For our First-time Homebuyer Programs, loan limits vary based on the area of the state in which the property is located. Click here for a table of these limits
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What are the income limits for VHDA programs?
Income limits vary based on the area of the state in which the property is located.
Click here for a table of these limits
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Where can I find VHDA's current interest rates? How often do these rates change?
Click here to view current rates. Rates may change due to a variety of economic factors.
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Is a home inspection required for a VHDA-financed property?
Although a home inspection is not required for VHDA loans, it is highly recommended. A home inspection performed by a qualified property inspector allows full disclosure of current property condition and allows for potential problems to be resolved before the sale, resulting in fewer problems after closing.
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