Buyer Assistance Programs for Home Ownership in Charlottesville

Home Buyer Towncville

Virginia residents looking to buy real estate have many options when it comes to assistance programs. With affordable mortgages, grants, savings programs, a tax credit and much more to choose from, there is no reason not to become a homeowner. Check your eligibility now and get an immediate response!


General Assistance


  1. Virginia Department of Housing and Community Development (DHCD) Virginia Individual Development Accounts (VIDA) Program

A program that combines support, training and funding, the VIDA Program makes it easy for participants to save for their home’s down payment. For every $1 that qualified participants contribute, the VIDA program matches it with $8. This continues until the maximum contribution is reached, $4,000.


  1. Virginia Housing Development Authority (VHDA) Down Payment Assistance Grant

Participation in the VHDA Down Payment Assistance Grant program means assistance without the burden of repayment. Prospective buyers must only contribute 1 percent of the purchase price on their own, and then the grant offers further down payment assistance for VHDA-approved loans. Buyers receiving Fannie Mae loans qualify for up to 2 percent of the purchase price, while those seeking an FHA loan can expect up to 2.5 percent.


  1. Housing Opportunities Made Equal of Virginia (HOME) Down Payment Assistance

For buyers looking for a long-term living arrangement, the HOME Down Payment Assistance Loan offers a perfect solution. This program is designed to provide qualified participants who are purchasing a new principal residence with up to $10,000 towards their closing costs and down payment. Best of all, as long as the buyer stays in the home for a minimum of 5 years, the loan is forgiven.


  1. VHDA FHA Plus Loans Combined Assistance

The burden of down payments and closing costs is lessened by the VHDA FHA Plus Loans Program , which offers both first and second mortgages to those that qualify. Participants receive 30-year, fixed-rate VHDA-financed mortgages through this program. All first mortgages are calculated via standard procedures, yet the second mortgages are a variable percentage of the purchase price. Based on the buyer’s credit score, the second mortgage can range from 3.5 to 5 percent of the price. Buyers must note that a 1 percent contribution is required on their part.


Affordable First Mortgages


  1. USDA Single Family Guaranteed Loan Program

Through the USDA Single Family Guaranteed Loan Program, qualified borrowers have the opportunity to receive up to 100 percent financing towards their new rural home. The program targets low- and moderate-income families who are looking for a new principal residence. One big benefit of this loan is that it is not solely for purchasing an existing home; borrowers can also use the money for building a new home and or for remodeling costs associated with their purchase.


  1. United States Department of Agriculture (USDA) Single Family Direct Loan Program

Low- and very low-income borrowers are qualified for the USDA Single Family Direct Loan Program. Through this program, borrowers can receive up to 100 percent financing for the purchase of safe, sanitary housing in rural areas. No down payment is required, and because of the lower-than-average interest rates and extended repayment periods – up to 38 years in extreme cases – the payments are more affordable.


  1. Union Mortgage Group STAR Portfolio Loan Program

Providing qualified borrowers with as much as $300,000 worth of financing with as little as zero percent down, the Union Mortgage Group Steps Toward Achieving Results (STAR) Loan Program is another viable option for prospective borrowers. All of the loans through this program are fixed-rate, 30-year loans that do not require mortgage insurance; however, the amount of financing depends on the borrower’s credit score. Those boasting a score of over 700 qualify for 100 percent loan-to-value financing.


  1. VHDA Fixed Rate Loans

The VHDA Fixed Rate Loan Program is perhaps the most versatile of the loan assistance programs, with three loan types to choose from: Rural Housing Services (RHS), VA and FHA loans. Borrowers simply choose the loan that best fits their needs. RHA loans allow for financing at up to 100 percent of the appraised value or purchase price, whichever is lower; VA loans require no down payment and cover up to 97 percent of the sales price and FHA loans allow the borrowers to roll some of their closing costs and premiums into the loan amount and also cover about 97 percent. Buyers of all types can benefit from this program.

Check your eligibility for these 4 First Time Home buyer programs and get an immediate response!


Tax Credits


  1. VHDA Mortgage Credit Certificate (MCC) Program

While it takes a little longer for buyers to see the rewards of the VHDA MCC Program, the savings add up significantly over time. This program offers first-time home buyers a 20 percent break on their federal income taxes for their mortgage insurance. This means that they only have to pay 80 percent of the mortgage insurance cost annually. Only borrowers purchasing their principal residence qualify for the MCC  break, but it can be applied for every single year for the entire life of the loan – up to 30 consecutive years, in most cases.

Do not let the stress of down payments and closing costs keep you from the excitement of buying a home. With the numerous assistance programs available to you, there has never been a better time to buy. Contact us today to help you find your own little slice of Virginia.

Questions? Send us a message through the contact button at the top or answer a few questions here and get an immediate response on programs you may be eligible for.