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:
- Virginia Association of Housing and Community Development Officials
- Roanoke Redevelopment and Housing Authority
- Richmond Redevelopment and Housing Authority
- Bristol Housing Authority
- Charlottesville Housing Authority
- Fairfax County Redev and Housing Authority
- Danville Redevelopment and Housing Authority
- Franklin Redevelopment and Housing Authority
- Hampton Redevelopment and Housing Authority
- Newport News Redevelopment and Housing Authority
- Norfolk Redevelopment and Housing Authority
- Virginia Housing Authority
- Waynesboro Redevelopment and Housing Authority
- Arlington County Moderate Income Purchase Assistance Program
- Down Payment Assistance Program
- Individual Development Accounts
- Loudoun County Down Payment and Closing Cost Assistance Program
- Norfolk HOME Program
- Portsmouth The Center for Community Development Affordable Housing for First Time Home Buyer Programs
- Richmond Direct Homeownership Assistance Plus
- Richmond Keystone Program Direct Homeownership Assistance
- Virginia Down Payment Assistance Programs
- Virginia Housing Development Authority