what are vhda loans

What are V.H.D.A. Loans? VHDA is the Virginia Housing Development Authority, which is the state’s finance agency. It’s goal is to help low and moderate income Virginians attain quality, affordable housing for first time and repeat home buyers. VHDA offers below market fixed rates, zero down payment programs, and even a financed closing cost option. Most of the VHDA programs require good job stability and good credit (660+); however, government loans, namely FHA and V.A., can be channeled through VHDA to obtain better rates than if they were not, thus helping borrowers with less credit depth qualify. However, the qualifying ratios are a little stricter this way. Program choices Features . Conventional Fixed* low fixed paymt/allows financed closing costs w/pmi FHA low down pymt/most liberal credit to qualify FHA plus 2nd loan to help with down paymt and closing costs 1st Choice Interest Only interest only 1st 7 years and no pmi V.A. low fixed rates, no down payment RHS rural housing service loans, no downpymt, low fixed rates Step Rate low start rate for borrowers who expect income to increase Flex Alt 100 for non-first-time homebuyers, no d.p., no pmi Flex Alt Advantage 104% loan allows financed closing costs, no pmi Flex Alt Home Enhancer can finance costs of minor improvements, zero d.p. Flex Alt Home Access can finance improvements including handicap accesses. Flex Alt Condo allows high renter ratios in condos (up to 60%), 3% d.p. *VHDA fixed rate loans are as low as 5.375, with (1+2) points. Qualifying for a VHDA Loans: Most of the VHDA loan programs require good job stability and good credit to qualify. Some of the programs, mainly the first time homebuyer ones, have income and sales price limits. People who have not owned a home in the past three years can qualify for these also. I’ve attached charts for these on the next few pages. Most of the qualifying ratios for VHDA are stricter than Conventional and standard Government guidelines. You may see the debt ratio limited to as low as 40% on some programs, where many Conventional and Government ratios allow borrowers up to 50% with good credit scores and money in savings. Sean D. Cohen Mortgage Consultant; Prosperity Mortgage 757-404-3387 sean.d.cohen@prosperitymortgage.com