Mortgage

RVA-FPCU offers a wide variety of mortgage products to fit individual member needs.

vhda lOAN pROGRAMS

Virginia Housing Development Authority (VHDA) was established in 1972 to help Virginians attain quality, affordable housing. They primarily serve low- to moderate-income first-time homebuyers by providing homeowner education and 100% financing options.

VHDA FHA PLUS:

In addition to an FHA first mortgage, VHDA provides assistance with down payment funds and closing costs in the form of a second mortgage.

  •  640 minimum credit score*

  • Maximum Second Mortgage of 3.5 to 5.0% of sales price, based on credit score

  • 30-year fixed-rate for both mortgages

  • The combined of the two loans cannot exceed the VHDA sales price limits

VHDA DOWN PAYMENT ASSISTANCE (DPA) GRANT:

Qualified first-time homebuyers may receive a percentage of the purchase price to help with their down payment. So how is this different from VHDA’s FHA Plus program?

  •  Minimum Credit Score: FHA 640, Fannie Mae 660*

  •  Maximum grant of 2 to 2.5% of sales price, depending on the eligible VHDA loan program

  •  DPA Grant may be used with eligible VHDA loans only

  •  May not be used in combination with other down payment assistance resources (including FHA Plus)

* Information is an underwriting guideline requirement and not a VHDA program guideline

Other loan program restrictions may apply. Loan programs may change at any time with or without notice. Information deemed reliable but not guaranteed. All loans

subject to income verification, credit approval and property appraisal. Not a commitment to lend.

Conventional Loan Program

Borrowers who have good credit have many options when it comes to getting a mortgage. The Conventional Loan Program is ideal for homebuyers who have good credit and the ability to put at least 20% toward the down payment to avoid mortgage insurance (MI). If a homebuyer is unable to put 20% down, conventional loans will allow for lower down payments with the addition of MI.

BENEFITS OF A CONVENTIONAL LOAN:

  •  Lower closing costs

  •  Flexible payment options

  • ›Fixed and adjustable rates

  •  Purchase and refinance financing available

  • Variety of home types accepted

  • Minimum credit score of 620

  • No MI for 20% or more down payment

  • 3% down payment with income limits

  •  5% down payment option (can be gifted funds if credit score is 660 or higher)

  •  MI can be paid up-front or monthly

  •  6% seller contribution maximum allowed with 90% loan-to-value (LTV) maximum

  • 3% seller contribution allowed with LTV of 90% or higher

Loan programs may change at any time with or without notice. Information deemed reliable but not guaranteed. All loans subject to income verification, credit approval and property appraisal. Not a commitment to lend.

FHA Loan Program

The Federal Housing Administration (FHA) is an agency within the Department of Housing and Urban Development. FHA loans are designed to help low- to moderate-income creditworthy families by offering a mortgage with lower down payment requirements and less restrictive qualifying criteria.

IMPORTANT BENEFITS OF FHA LOANS:

  • Only a 3.5% down payment is required

  • Down payment can be a gift or a loan to the borrower from an eligible source, such as a family member or a state

  • housing agency program

  • Sellers may pay 6% toward closing costs, prepaids, buy downs, abatements, etc.

  • Cash reserves are not required (except for 3 and 4 unit properties)

  • Flexible guidelines for qualifying ratios

  • More lenient on credit blemishes

  •  Non-occupying co-borrowers are allowed

PROPERTY ELIGIBILITY:

  • At least one borrower must occupy the property as a primary residence

  • Second homes aren’t permitted. Investment properties are only eligible for streamline refinances without an appraisal

QUALIFYING FOR AN FHA LOAN:

  •  Debt-to-income ratios should be 31/43 unless an automated underwriting approval is received or if there are significant compensating factors

  • Chapter 13 bankruptcies are acceptable with 1 year of timely payments and permission from the trustee

  • Chapter 7s are acceptable 2 years after discharge with no new credit problems

Other loan program restrictions may apply. Loan programs may change at any time with or without notice. Information deemed reliable but not guaranteed. All loans subject to income verification, credit approval and property appraisal. Not a commitment to lend.

USDA Loan Program

The Rural Housing Loan is a federal program by the United States Department of Agriculture (USDA) that’s used to help low- to moderate-income borrowers purchase homes in rural areas. This home loan allows borrowers to obtain mortgage financing up to 100% of a home’s value, including closing costs. The USDA insures the loan in case borrowers default on their payments, allowing lenders the ability to offer this loan to borrowers that may not otherwise qualify for a home loan.

YOUR BUYERS CAN EXPECT:

  • 100% financing available – no down payment required

  • Low monthly mortgage insurance

  • Flexible credit and qualifying guidelines

  • No maximum purchase price limit

  • Closing costs can come from various sources, including gifts

  • Competitive 30-year fixed rates

Other loan program restrictions may apply. Loan programs may change at any time with or without notice. Information deemed reliable but not guaranteed. All loans subject to income verification, credit approval and property appraisal. Not a commitment to lend.