vhda plus no down payment loan

Buying a home is one of the most satisfying experience anyone can have. However, most people think you need a huge down payment in order to buy a home in Northern Virginia. This is simply not true in today’s real estate market. There are some great no down payment home loans available today to make your dream of home ownership come true. One of those great new programs is the VHDA Plus Second Mortgage program.

With the VHDA Plus Second Mortgage, prospective home owners are offered down payment assistance. As with most standard home loans, the program has a 30 year term. However, the VHDA Plus loan allows you to take out a second mortgage that is 3.5% of the sales price to use as the down payment.

If your credit score is below 680, you will be able to take out that second mortgage of 3.5% of the sales price for your down payment. If your credit score is above the second mortgage is 5% of the sales price. The good news is that the interest rates on both mortgage will be the same.

Requirements of No Down Payment Loan

  • Although you don’t need a down payment to buy a home with this program, you will need to have at least 1% of sales price available. This can include Gift funds and 401k loans.
  • Homebuyers will also need to complete the VHDA’s free First-time Homebuyer Class.
  • Credit score of at least 620 to qualify

Benefits Of VHDA FHA Plus Loans

  • FHA-fixed first mortgage
  • 100% financing, no down payment cash needed
  • Low payments on the second mortgage.
  • Liberal credit qualifying, as low as 620 FICO score
  • Low 30-year fixed interest rate
  • Eligible for Mortgage Credit Certificate
  • Allows financing of closing costs.

Get Pre-Approved For No Down Payment Loan

If you are interested in learning more, I suggest getting in touch with one of the reputable lenders below that are familiar with this no down payment home loan program. They will get you started and get you pre-approved so you know how much home you can afford. Then the fun begins: house shopping!

Program details and procedures are available on vhda.com. See the VHDA Plus Second Mortgage Program Guidelines for more information.

vhda plus second mortgage