Virginia Housing Plus Second Mortgage FHA
Best For: First Time Homebuyers, Low Credit Scores, Zero Down
The Virginia Housing Plus Second Mortgage can provide up to 5% in additional funds that can be used as down payment and/or closing cost assistance.
Program Description
The Virginia Housing Plus Second Mortgage combines with the Virginia Housing FHA First Mortgage to cover the cost of your down payment, and potentially a portion of the closing costs for eligible borrowers. It is a 30-year fixed rate and has higher income limits than the Virginia Housing Grant Programs.
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Virginia Housing Plus Second Mortgage FHA
Min. Credit Score
620
Min. Down Payment
0%
Max Loan Amount
$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.
Program Benefits
Benefit type: Up to 5.00% of 1st Loan Amount
Type: Standard 2nd Mortgage Program - Repayable
This loan has a 30-year fixed rate and does not impose a prepayment penalty. If you qualify, you're also eligible for the Virginia Housing Mortgage Credit Certificate (MCC).
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.
Pros & Cons
- Higher income limits than the Virginia Housing Grant Programs
- More assistance available than the Virginia Housing Grant Programs
- Borrowers may also qualify for a Virginia Housing MCC
- Cash reserves required (minimum of 1% of the sales price)
- Income limits apply (varies by county of property)
- Purchase price and loan amount limits apply
Program Availability
Virginia Housing Plus Second Mortgage FHAs are available in 1 state.
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“This is an excellent option for those with higher credit scores (680 or higher) with an added bonus option to finance part of the closing costs with this mortgage."
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
$95,000 - $162,000
Annual Household (1-2) 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
- Down payment and closing cost assistance up to 5% of price or value
- Can be used for down payment AND closing cost assistance
- Requires a 680 credit score if used for closing cost assistance
Additional Conditions
- Borrower(s) must be first time homebuyer(s) or repeat buyer(s) purchasing in Areas of Economic Opportunity
- Must be combined with the FHA Loan Program from Virginia Housing
- Cannot be combined with the Virginia Housing Grant Programs
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 is 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.
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.
Virginia Housing Closing Cost Assistance Grant
Best For: First Time Homebuyers, Low Credit Scores, Zero Down
Virginia Housing's Closing Cost Assistance (CCA) Grant gives up to 2% in additional funds to reduce out-of-pocket expenses for first time homebuyers.
Virginia Housing Down Payment Grant - FHA
Best For: First Time Homebuyers, Zero Down
Virginia Housing's Down Payment Assistance (DPA) grant provides qualified first time homebuyers with up to 2.5% of the purchase price or value.
Related Resources
2023 Down Payment Assistance Guide
Unless you're related to a dragon or leprechaun with a hoard of gold stashed away somewhere, chances are you are like one of the other 87% of homebuyers who need to finance their home purchase.
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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
Mortgage Insurance Premium – MIP – Explained
Are you scratching your head, wondering what mortgage insurance is and why it's adding to your expenses? It's confusing, to be sure. If you're taking out a Federal Housing Administration (FHA) loan, chances are you'll need a mortgage insurance premium (MIP) to be set up. Also known as FHA mortgage insurance, it works to protect the lender from these higher-risk loans. As you learn how to buy a house, you may encounter these home loans, which typically have a lower interest rate and easier qualifications. Even with the requirement for MIP, FHA loans could still benefit you.
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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