Learn everything you need to know about the first time home buyers programs in Virginia, including the requirements and eligibility criteria for each program.
Buying a home involves a whole lot of upfront research and consulting experts in real estate, finance, and mortgage lending. Virginia is the state in the USA with the lowest crime rates and low unemployment rates. Further, it is also the most real estate-friendly state where you can find statewide and local homeownership assistance programs for first time home buyers Virginia.
So, in Virginia, first-time home buyers would find the perfect place to start. Moreover, it is the best place to find a condo for yourself. Also, Virginia first-time home buyers can find the finest places to live near Virginia Beach or anywhere in between the same.
National First Time Home Buyer Programs 
There are various National first-time home buyer programs that you can find in Virginia for those potential first-time home buyers who belong to the modest income earning category.
There are conventional mortgage programs with a low down payment. In a conventional mortgage, the home loan acquired by first-time home buyers is not insured and guaranteed by the federal government.
Then, there are the FHA loans that people with low credit scores can avail themselves of with a low down payment. First-time home buyers who have credit scores of 580 or higher can get the loan with a downpayment of 3.5%. Those who have credit scores below 500 can pay a 10% down payment.
Next up in West Virginia’s first-time home buyers loan programs, we have the VA loans. These loans focus on those people who are veterans and their surviving spouses. These loans are the most generous with competitive interest rates. Further, they often don’t require downpayment or mortgage insurance.
Another Virginia first-time home buyers program is the USDA loans. The USDA loan is a zero-downpayment first-time home buyer program that is suitable for those people who belong to rural and suburban areas of Virginia. They are issued by the U.S Department of Agriculture through the USDA Rural development guaranteed housing loan program.
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What Are The VHDA Highlights and Eligibility Requirements?
If you belong to Virginia and you are one of the VDHA first-time home buyers, then you might be aware of the Virginia housing development authority. Let’s go through in detail the highlights and eligibility requirements of the VDHA.
The VDHA comes with many benefits for first-time home buyers, Virginia. Check out those benefits listed below:
- Downpayments grants are available for first-time home buyers wherein those people who are investing in home buying get down payment assistance in the form of gifts from the loan lenders.
- The VDHA programs come with 30-year fixed-rate loans.
- The VDHA programs also allow zero down payment for the loans acquired by the first-time home buyers of Virginia.
- Finally, the VDHA is eligible for federal tax credits.
Eligibility Requirements of VDHA
- The credit score of each VDHA program can vary. For example, the lowest score is 620.
- First-time home buyers are not supposed to own a home in the past three years.
- The maximum income of the buyer and their loan limits varies from location to location.
- The home bought by the first-time home buyer should be their permanent residence and not a business place.
- Most of all, the home applicants must attend the homeownership education classes and must complete the same.
7 VHDA First Time Home Buyer Loan Programs You Should Know
- Down Payment Assistance Grant
- Granting Freedom
- Mortgage Credit Certificates
- Virginia Housing Conventional
- Virginia Housing Conventional No Mortgage Insurance
- USDA (Rural housing service)
1. Down Payment Assistance Grant
In this program, the home buyer receives 2.5% of the new home’s purchase price that they can use for applying for the down payment. The buyer need not repay the amount, because the grant is combined with the Virginia housing loan and household income limits of the buyer.
2. Granting Freedom
These home loan programs are for those who work for the US military and are veterans or have service-related disabilities. The first time home buyers Virginia program offers a $6,000 grant that can be used for home modifications to increase accessibility, such as widening doorways, adding wheelchair ramps, etc.
3. Mortgage Credit Certificates
In this, the Virginia housing issues the eligible home buyers with mortgage credit certificates. As they receive the loan from an approved lender. It helps in reducing dollar-for-dollar federal tax credit that might further reduce the buyer’s tax liability.
4. Virginia Housing Conventional
The Virginia Housing Conventional program is for those home buyers who are looking to move up with a down payment that is lower than 3% with a grant. Also, the program requires a borrower who can pay for the mortgage insurance. However, you will need a credit score of at least 640 to qualify for the same.
5. Virginia Housing Conventional No Mortgage Insurance
The Virginia housing convention has no mortgage insurance and is even similar to the Virginia housing convention. The only difference between both is that the latter requires no payment of the mortgage insurance.
6. FHA (Federal Housing Administration)
FHA comes with the state’s down payment assistance grant which helps in reducing the 3.5% FHA down payment to 1%. The minimum credit score required for the same is 620. Also, a second down payment option is also available.
7. USDA (Rural Housing Service)
The USDA Rural housing service is the next best VHDA home buyer loan program. They offer a zero-down payment option for homes in rural and suburban areas. They further allow the financing of 10 years for existing manufactured housing.
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What Are The Checklist For First Time Home Buyers Virginia?
Buying homes need not be an overwhelming experience for first-time home buyers in Virginia if they follow this checklist:
- Determine the housing needs
- Try contacting the local expert
- Visit the neighborhood
- Have home inspection
1. Determine The Housing Needs
Before you look for different housing options for yourself, determine what your needs are. Know the location of the house and analyze the distance you will have to take to go to nearby places.
2. Try Contacting The Local Expert
You should always consult the local expert to get an idea of the place. For instance, if you are looking for a home in Virginia, try contacting the local real estate agents of the place. Only they will know what to look for while buying a house in Virginia.
3. Visit The Neighborhood
Knowing the neighborhood helps you understand whether it suits your taste. It will give you an idea about what the traffic in the areas is all about.
4. Have Home Inspections
Most importantly, make sure to get the home inspections done to ensure that there is no problem regarding any underlying program in the house.
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5 Top Tips To Avoid Mistakes For First Time Home Buyers Virginia
- Ensure, that you can afford a house in Virginia
- Check your credit card reports and ensure there are no errors
- Avoid making small down payments
- Look for only first time home buyers virginia programs
- Avoid making minimal down payments without buying discount points
Overall, these are some of the first-time home buyers’ Virginia requirements and programs that you need to know before investing in real estate. Keep in mind that your needs should be addressed properly when you are trying to buy a new house as your permanent address.
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Frequently Asked Questions
Who qualifies as a first time home buyers, Virginia?
A person who has never owned a house or at least not in the past three years qualifies as a first-time home buyer in Virginia. However, this limit depends on the region you belong to.
Do first-time home buyers get a tax credit in 2023?
Under the Mortgage Credit Certificate program by VHDA, first-time homebuyers can get a tax credit in 2023.
Is FHA only for first time home buyers?
The FHA is not limited to first-time homebuyers but it attracts more new buyers because those home loans are easy to qualify for.