Virginia Down Payment Assistance Programs

Virginia Down Payment Assistance Programs
Virginia Down Payment Assistance Programs

With the help of Virginia down payment assistance programs, many residents can afford a mortgage payment and the costs associated with owning their own home. The thought of raising a substantial down payment by themselves often discourages them from taking the plunge. There are federal institutions and charitable organizations available to help these buyers with the problem.

Both federally run and non-profit Virginia down payment assistance programs assist interested home buyers get funding for a down payment on a home. The home seller helps the buyer by contributing a part of sale proceedings to the buyer during closing. State and federal laws dictate that sellers cannot offer the funds directly to the buyer. Hence, the assistance programs offer a work around in a way that the sale remains within federal guidelines. The type of loan being applied for will determine the amount.

The seller will enroll the home in a down payment assistance program. He or she will then contribute the amount needed by the buyer for closing. Here, a certain fee is applied. When the seller and buyer get to the closing table, the chosen assistance program wires the required funds to the selling agent. The seller cannot have any part in the funds transfer, by law.

The FHA (Federal Housing Authority) offers the best source of funding. Its prime responsibility is to administer government programs for home loans. Since the FHA insures the loan, the lender is protected should a default occur. In addition, the FHA looks at debt-to-income ratios in a different perspective. This offers an advantage to buyers with less than perfect credit.

A homebuyer should be aware that sellers may inflate the selling price of a home he or she is interested in. They do this to recover their fees that may be needed to enroll the home with a certain organization.

Below is a list of Virginia Down Payment Assistance Programs:

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