Down Payment Assistance DPA Grant Program

Dated: 03/21/2016

Views: 2517

VHDA Update

All new VHDA loan grant program starting March 14th! This program will give you your down payment! YES, GIVE..as in you do not need to repay! Below are all the details. 


Got Questions? Call or email me directly. Hurry this program is for a limited time and once its over....its over!


~Chuck


Down Payment Assistance (DPA) Grant Program

Program Guidelines and Procedures

Program Availability

DPAs may be reserved with all new eligible rst mortgage loans locked as of the e ective start date of the program.Existing locks will not be eligible. Existing locks may not be cancelled and re-locked to receive the grant unlesscancelled due to a change in property.

Maximum Household Income

Lower Income Limits apply, and income for all household members must be included. Income of non-borrowingoccupants must be certi ed on the VHDA Program Disclosure/A davit (Ex. E) – Include VHDA Program Disclosure forFannie Mae Loans.

Maximum Grant

3% of the lesser of sales price or appraised value for VHDA Fannie Mae and 3.50% for VHDA FHA (if appraised valueor sales price is reduced after initial reservation lender must make the change in the system and obtain new AwardsLetter at changed amount).

Eligible First Mortgage Programs

VHDA Fannie Mae and VHDA FHA.

Ineligible First Mortgage Programs

VHDA Conventional Bond, FHA Plus, Rural Development, VA. Available only with VHDA loans.

Mortgage Credit Certi cates

DPA borrowers are eligible for an MCC. Approved MCC lenders are requested to o er an MCC with the DPA Grant.

Other Down Payment Assistance

Not eligible if borrower receives other down payment assistance including Federal Home Loan Bank and HOME funds.

Repayment

No repayment required.

Closing Documents

No note or deed of trust for the grant funds.

Maximum Assets

No maximum borrower asset limit (other than standard VHDA Net Worth).

Minimum LTV

If DPA grant used with other borrower funds – the minimum LTV is 95%.

First-time Homebuyer

Yes – borrower must meet VHDA First-time Homebuyer requirement unless purchasing in a targeted area; 3 years taxreturns/transcripts required, including Fannie Mae Loans.

Recapture

None on Grant funds.

Use of Funds

Fund to be used for down payment only – not closing costs.

Homebuyer Education

Yes – standard VHDA requirement.

AUS Submissions / Approvals

Grant must be entered under “Source of Funds ” as “FHA-Gift-Government Assistance” and as a “gift” in assets.It may not be entered as “other” in Details of Transaction or “Subordinate Financing.” If a Refer decision is rendered,lenders should be sure to document and include all available assets such as a 401(k) account, as this may assist inrendering an Approved decision. Fannie Mae loans must receive an Approve/Eligible Decision.

Refer / Manual Approvals

Lenders may approve loans with a manual underwrite on FHA loans only. The lender’s DU underwriters may approvethe loan in accordance with FHA manual underwrite guidelines. The lender is fully responsible for compliance with

the FHA manual approvals. Minimum credit score is 620 even with manual approval.

Continued on Next Page

Down Payment Assistance (DPA) Grant Program

Program Guidelines and Procedures (continued)

Registering Grant Funds

After registering and locking the eligible VHDA rst mortgage in VHDA’s Mortgage Cadence System, the lenderwill complete the “Grant” screen located on the left navigation menu. Only individuals with Security Access Level 1(Administrators), Level 2 (Underwriters) and Level 3 (Secondary) may reserve or make changes to the grant. Othersystem users may view the Grant screen. See Grant screen below. You must complete the Appraised Value eld on theLoan Summary C Screen prior to reserving the grant.

DPA Grant Screen in VHDA’s Mortgage Cadence System:

Conrmation/ DPA Awards Letterand Letter of Obligation

The DPA Awards Letter and Letter of Obligation may be obtained through the “Attachments” utility after the grant isreserved. The Awards letter must be signed by borrower(s) and included in the closing package submitted to VHDA.

DPA Expiration

DPA Grant expires on same day as the rst mortgage loan lock expiration.

Extension Request

DPA funds follow the rst mortgage rate lock along with any allowed extension, up to a maximum 60-day extension(extension fees apply only to the rst mortgage).

Closing Disclosure

The Closing Disclosure must re ect “VHDA DPA Grant.”

Funding of Grant

Originating lender will fund the grant at closing and VHDA will reimburse the lender upon purchase of the rst

mortgage.

Continued on Next Page

Down Payment Assistance (DPA) Grant Program

Program Guidelines and Procedures (continued)


MaximumHousehold Income*

MaximumHousehold Income*

Maximum SalesPrice / Loan Limits

Area

2 or Fewer People

3 or More People

New & Existing

Washington / Arlington /Alexandria MSA

$97,520

$113,840

$500,000

Charlottesville MSA

$74,080

$86,480

$375,000

Richmond MSA

$68,000

$78,720

$375,000

Norfolk / VA Beach /Newport News MSA

$64,320

$75,040

$375,000

Culpeper

$74,720

$87,200

$425,000

Rappahannock

$74,640

$87,120

$425,000

Warren

$68,800

$80,320

$425,000

King George

$74,080

$85,520

$325,000

Statewide

(All areas not listed above)

$58,880

$67,680

$251,900


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Chuck Rifae

Chuck Rifae has been a leading Northern Virginia Realtor since 2002. Chuck holds the advanced designation of Broker of Real Estate for both Maryland and Virginia. When Chuck is not working with buyer....

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