We just met with our friends at Atlantic Coast Mortgage this morning and have a great first time home buyer program to share. The Virginia Housing Development Authority (VHDA) is once again offering a pool of money to assist with down payments. Available on a first come first served basis, last year’s fund had approximately $5,000,000. Here is how it works:
- You must apply for the certificate with a lender and get approved by VHDA before closing. The certificate application must happen at the start of the loan application process.
- The VHDA mortgage credit certificate (MCC) gives you a dollar-for-dollar credit against your federal taxes.
- 100 % financing is available, visit the VHDA website for more information on their loan programs.
First time home buyers are qualified as those who have never bought in Virginia or have not owned a home in the last three years. The other condition to the program is the home must be used as your primary residence. As with most things in life, there are exceptions. In this case the home must be in a Federal Targeted Area designated for economic growth in Virginia. Locally those areas are certain portions of Fairfax County including neighborhoods in Alexandria and Arlington.
Your income and the price of the home you buy must also be below a preset limit in order to qualify for the credit. For our area the income limit for a household with 2 or fewer people is $121,900. Three or more people in the house raises the income limit to $142,300. The maximum sales price for new construction or existing homes is $500,000.
As we mentioned earlier, the down payment funds are first come first served. If you’d like to learn more please give us a call at 571-233-5495 or contact us here. We’d be happy to put you in touch with an approved lender.