Usually, potential buyers of properties have what it is required to qualify for a mortgage but are not able to save enough for a down payment or don’t want to put all their savings on a down payment. Therefore money from many types of West Virginia down payment assistance programs, which available through the state and other housing agencies, is not used because most buyer think they don’t qualify. Often, when people think of down payment, they picture borrowers who are financially challenged but these programs are not for low income people. They are actually for people who have a decent income but lack enough savings for a down payment.
With these programs in West Virginia, buyers can earn anything from 120 percent to 150 percent for middle class earners and qualify for the assistance programs. They can qualify for a grant of up to 5 percent of a home’s buying price but these percentages are dictated by a West Virginia down payment assistance program. The grant has no-strings attached once you automatically qualify through one of the participating lenders in the assistance program. Housing authorities have a list of the existing programs and names of the participating lenders on their websites. Potential buyers can see if they qualify by contacting these lenders. Some lenders have come up with their own programs to assist people who are buying a home for the first time by giving them a low down payment. These programs are very safe.
Many programs are structured a second and silent mortgage which is repaid specifically when the home is sold or the mortgage has been settled in full. The funds come from a number of initiatives by the government and housing authorities. A buyer in West Virginia earning about $75,000 per year can qualify for up to $10,000 as interest free loan that does not have to be repaid until the buyer decides to sell the house. On average, people get between $5,000 and $20,000 from these West Virginia down payment assistance programs.
Below is a list of West Virginia Down Payment Assistance Programs:
No Down Payment Mortgages – mortgages that require no down payment
USDA Rural Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.
Low Down Payment Mortgages – mortgages that require up to 3.5% down payment
FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.
Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.
The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.
West Virginia Down Payment Assistance Programs
Down Payment Assistance Program This West Virginia down payment program can be used in conjunction with both the home ownership Program and the Movin Up Program. Loan amounts will range from $5,000 to $15,000 based on which first mortgage loan was taken out, and how much financing was needed. The lower the loan to value ratio, the more West Virginia down payment assistance a West Virginia borrower can receive. All West Virginia down payment loans are a 15 year fixed rate loans at a current rate of 2.5 percent.
Homeownership Program This West Virginia down payment program first time buyers can finance 100 percent of their home. West Virginia borrowers must show proof of a stable income. Income and purchase limits vary by county. This purchase program can be combined with West Virginia down payment assistance.
Movin Up Loan Program This West Virginia down payment program does not have a first time home buyer requirement, rather, it is geared towards home buyers that are looking to buy their next home. The Movin Up Program offers a purchase mortgage with West Virginia down payment assistance. The West Virginia down payment assistance is as follows: $5,000 for loans with a LTV ratio greater than 90 percent of the purchase price; $8,000 for loans with a LTV ratio less than 90 percent of the purchase price.
The US Department of Housing and Urban Development (HUD) offers the following programs:
The Good Neighbor Next Door Program was created by U.S. Department of Housing and Urban Development (HUD) to help law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians buy homes. The biggest benefit of the Good Neighbor Next Door Program is the 50% discount of the home’s list price. The only catch is that the home owner must commit to live in the property for 36 months as their sole residence.
To learn more about the Good Neighbor Next Door Program, click here.
The Section 184 Indian Home Loan Guarantee Program is a mortgage for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. In 1992 Congress created this program to help Native American Communities with homeownership.
Section 184 loans helps borrowers buy homes with a low down payment and flexible underwriting. Moreover, the loan does not need to be used only on properties on native lands. Purchase of an existing home for single-family residences. Also allowed are new construction, rehabilitation, and refinance.
To learn more about Section 184, click here.
West Virginia Housing Agencies
West Virginia housing agencies are your best resource for down payment assistance programs. Through funding from HUD, the purpose of these agencies is to ensure that affordable housing is available for everyone.