HOMEownership Down Payment Assistance Program
Best For: First Time Homebuyers, Zero Down
Up to 10% of price or value in forgivable down payment and closing cost assistance for Virginia first time homebuyers
This loan program is not available in Harlingen, TX
Program Description
The HOMEownership Down Payment Assistance Program offers up to 10% in down payment and closing cost assistance for Virginia first time homebuyers in the form of a forgivable second loan.
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HOMEownership Down Payment Assistance Program
Min. Credit Score
620
Min. Down Payment
0%
Max Loan Amount
$806,500
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Program Benefits
Benefit type: Up to 10.00% of 1st Loan Amount
Type: Bond Deferred Payment Program - Forgivable
The assistance comes in the form of a no payment, no interest forgivable loan that is forgiven over a period of either 5, 10 or 15 years depending on the amount of assistance or subsidy.
First Mortgage Program Option
This program can be used in tandem with the following first mortgage programs in order to help fulfill down payment requirements, pay closing costs, or provide other benefits. Learn all about how grants, bonds & 2nd mortgages work here.
- Conventional Purchase Loan
- FHA Purchase Loan
- USDA Purchase Loan
- VA Purchase Loan
- Chenoa Fund FHA Purchase Loan
- Chenoa Fund FHA Manufactured Home Purchase Loan
Pros & Cons
- Provides up to 10% in forgivable assistance
- Can be used for manufactured homes and condos
- Available in all of Virginia
- Can be combined with VA, FHA, Rural, or Conventional mortgage types
- Not available for second homes or investment properties
- 80% of AMI (Area Median Income) income limits apply
- Purchase price limits apply (must not exceed 5 times borrowers' household income)
- Funds are limited
Program Availability
HOMEownership Down Payment Assistance Programs are available in 1 state.
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“If you're ready to buy your first home in Virginia but need assistance offsetting costs, programs such as HOMEownership can provide forgivable down payment and closing cost funds."
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
43.00%
Purchase Price Limit
$271,200 - $562,000
Income Limit
$54,240 - $112,400
Annual Qualifying Income
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
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Key Features
- Up to 10% of price or value for down payment and closing cost assistance
- Assistance is forgivable over a 5, 10 or 15 period (depending on amount)
- Credit scores as low as 620 allowed
Additional Conditions
- You must qualify for a first position mortgage through a Virginia Housing approved lender (can be FHA, VA, RHS or Conventional)
- Borrowers with cash assets of 10 percent or more of the sales price are not eligible for this program
- Homebuyers whose income falls between 50% and 80% of the area median income (AMI) are required to contribute 1% of the home's sales price from their personal funds. If the income is less than 50% of the AMI, a contribution of $500 towards the home purchase can be made.
- Closing cost assistance cannot be more than $2,500
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class may be required for this loan program.
Class Name: Virginia Housing or Other HUD-Certified Homebuyer Education Course
Program participants are required to complete a HUD-certified education course through a Virginia Housing or Neighborworks® certified course provider and submit a certificate of completion.
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
No Mortgage Insurance
This program does not require Private Mortgage Insurance (PMI).
Type: No Funding Fee
This program does not have a funding fee.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 2.5% 0.5%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
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Related Resources
First Time Homebuyer Guide
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2023 Credit Score Guide and Tips for Improvement
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Read MoreVisit our Mortgage Education Center for more resources.
* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
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