HOMEownership Down Payment Assistance Program
The three primary costs associated with the process of purchasing a home, down payments, closing costs (costs and fees that are part of receiving a home loan), and prepaid costs such as the establishment of an escrow account (for future payments of taxes and insurance), are sometimes the biggest hurdles toward homeownership that homebuyers face.
The Virginia Department of Housing and Community Development assist homebuyers with these costs through funds from the federal HOME Partnership Investment Fund (HOME). The program offers down payment and closing cost assistance to individuals and families whose income is at or below 80 percent of the Area Median Income (AMI). For example, a homebuyer meeting the income eligibility may receive up to10 percent of the purchase price of a home to go toward the down payment, plus up to $2,500 to pay for the cost of closing; e.g. attorney’s fee, title insurance, and taxes.
The HOMEownership Down Payment Assistance program operates through local partnerships with governmental entities, nonprofit housing service providers, and mortgage lenders across the Commonwealth. The program utilizes a network of program administrators who offer housing counseling and pre-qualification screening for eligibility on a first-come, first-served basis to address regions of the state targeting homebuyers with incomes at or below 80 percent of the AMI.
Discounted first mortgage monies may be available through the Virginia Housing Development Authority (VHDA) for first-time homebuyers who are credit-eligible and can qualify for VHDA financing. These discounted first-time mortgages are originated through a VHDA-approved lender or by the VHDA Mobile Mortgage Van
For more information, contact Johnette Powell: johnette.powell@dhcd.virginia.gov or (804) 371-7117.
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