Virginia Housing Conventional - Low Income
Best For: First Time Homebuyers, Low Down Payments
Conventional option for low income Virginia homebuyers that can be paired with down payment assistance of up to 5% of the purchase price.
This loan program is not available in Spalding County, GA
Program Description
Virginia Housing offers a 30-year Conventional loan option for households making less than 80% of AMI (Area Median Income). It can be combined with the Virginia Housing Plus Second Mortgage or Down Payment Assistance Grant, which provide additional funds ranging from 0.5% to 5% of the purchase price or appraised value. The main benefit of this first mortgage program is that it requires less private mortgage insurance (PMI) coverage, resulting in significant monthly savings to the borrower.
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Virginia Housing Conventional - Low Income
Min. Credit Score
640
Min. Down Payment
3%
Max Loan Amount
$330,000 - $665,000
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.
Pros & Cons
- Lowest mortgage insurance coverage requirement available
- Assistance available, between 0.5% and 5% of price or value
- Lower credit score requirement than the Virginia Housing No MI loan
- Also available to repeat homebuyers
- Allows up to 50% DTI (Debt-to-Income)
- Purchase price, loan amount, and income limits apply
- Only available for 1-unit primary residences
- No manufactured homes allowed
- Lowest income limits of all Virginia Housing first mortgage programs
Program Availability
Virginia Housing Conventional - Low Incomes are available in 1 state.
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“Virginia Housing makes purchasing property a little easier thanks to great programs—including reduced mortgage insurance, forgivable grants and flexible second mortgages."
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
50.00%
Purchase Price Limit
$330,000 - $665,000
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
- Conventional option from Virginia Housing with lower mortgage insurance
- Can be combined with Second Mortgage or Down Payment Assistance Grant
- No first time homebuyer requirement
Additional Conditions
- Buyers must meet program guidelines, complete homebuyer education courses, occupy the property as a primary residence, and not exceed the income limits
- Eligible for combination with either the Virginia Housing Down Payment Assistance Grant or Plus Second Mortgage
- Can be combined with the Virginia Housing Mortgage Credit Certificate (MCC)
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 Homebuyer Education Course
Virginia Housing offers a variety of free homebuyer education options to help program participants prepare for the entire home buying process. They have online and in-person options and the course takes around 8 hours to complete. Other HUD Approved courses are also acceptable.
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.
Required with less than 20% Down Payment
Type: Private Mortgage Insurance (PMI)This program requires Private Mortgage Insurance (PMI) if you are putting down less than 20% on the home you are purchasing or refinancing.
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%
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.
Grants, Bonds & 2nd Mortgages
There are certain programs that can be combined with this Virginia Housing Conventional LI program to help cover all or a portion of your down payment and closing costs, or provide additional borrower benefits.
Virginia Housing Down Payment Grant - Conventional
|Virginia Housing Conventional LIVirginia Housing's Down Payment Assistance (DPA) grant provides qualified first time homebuyers with up to 2% of the purchase price or value.
Max. Loan Amount
$330,000 - $665,000
Min. Credit Score
640
Min. Down Payment:
0%
Virginia Housing Plus Second Mortgage Conventional
|Virginia Housing Conventional LIThe Virginia Housing Plus Second Mortgage can provide up to 4.5% in additional funds that can be used as down payment and/or closing cost assistance.
Max. Loan Amount
$330,000 - $665,000
Min. Credit Score
640
Min. Down Payment:
0%
Special Offers
Occasionally, there are special offers that can be added to this mortgage program that provide additional benefits, such as a reduction in your federal taxes (mortgage credit certificates), extra cash for your down payment, and more.
Virginia Housing Mortgage Credit Certificate (MCC)
Virginia Housing's Mortgage Credit Certificate (MCC) is an interest tax credit that is used to reduce a borrower's federal income tax responsibility each year. It is equal to 10% of your annual mortgage interest, and the remaining 90% is tax-deductible. It is specifically for first time homebuyers and can be paired with many Virginia first mortgage and down payment assistance programs.
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.
Virginia Housing Conventional No MI Loan
Best For: First Time Homebuyers, Low Down Payments
Conventional loan from Virginia Housing with no private mortgage insurance (PMI) and down payment assistance options.
Virginia Housing VA Loan
Best For: First Time Homebuyers, Low Credit Scores, Zero Down
VA program for Virginia first time homebuyers with competitive interest rates and up to 2% in forgivable closing cost assistance.
Related Resources
Knowing Your Mortgage Insurance Options (Conventional Loan PMI)
PMI is an important part of getting a mortgage, but it can vary in cost. Learn about the different types and what you should consider when budgeting for it here.
Read More
First Time Homebuyer Guide
Being a first-time homebuyer has its fair share of challenges. One of your biggest obstacles will be competing against other new or seasoned buyers. While bidding wars have tapered since the previous buying season, they can still occur.
Read More
Calculate Income Limits Using Area Median Income
Income limits are used to determine whether or not a home buyer is eligible for certain mortgage programs, including down payment assistance programs or incentives that can help make home buying more affordable. It identifies the maximum income level set by each housing authority for its program participants, and varies from county to county across the US. Often, the tool used to establish this maximum income level is often called Area Median Income, or AMI.
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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