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Posts Tagged ‘VHDA maximum income limits and sales price for Fauquier County for 2009’

The Virginia Housing Development Authority, VHDA, Homebuyer Tax Credit Plus – Program Can be Used for Closing Costs, Points, (and Downpayment) on Loans Closed by December 1, 2009

The Virginia Housing Development Authority (VHDA) is launching a new program to allow first time homebuyers to use the Federal First Time Homebuyer $8,000 Tax Credit to finance closing costs, points to lower their interest rate, and downpayment on a VHDA mortgage.  Borrowers can use the Tax Credit for downpayment only if they satissfied the 3.5% FHA requirement – only then the credit can be used to make a larger downpayment.

The release of VHDA’s program follows HUD’s May 2009 announcement that FHA approved lenders are permitted “monetization” of the Federal First Time Homebuyer Tax Credit through short-term bridge loans.

 

 VHDA Homebuyer Tax Credit Plus Program Features: 

  • The maximum loan amount for the first mortgage is the maximum FHA mortgage
  • Affordable fixed-rate financing on both mortgages
  • 0% interest on the second mortgage for the first year
  • No payments required on the second mortgage for the first year
  • Beginning with the 13th month, the second mortgage will have the same interest rate as the first mortgage and monthly payments must be made thereafter
  • Maximum second mortgage loan amount – up to 5% of sales price (no cash back)

 

VHDA Homebuyer Tax Credit Plus Program Details:

Time Limit: Loan must close no later than November 30, 2009.

 Eligibility Requirements: Borrowers must meet federal First-time Homebuyer Tax Credit requirements as well as VHDA’s requirements regarding first-time homebuyer status, income limits, sales price limits, etc.

Maximum Income: The combined income of all household members may not exceed VHDA’s maximum income limits, which for Washington D.C. area: Arlington County, Fairfax County, Fauquier County, Loudoun County, Prince William County is $86,900 for 2 or fewer persons, and $100,000 for 3 or more persons.

Maximum Sales Price/Total Loan Amount: The combination of the first and second mortgage may not exceed VHDA’s sales price/income limits, which for Washington D.C. area: Arlington County, Fairfax County, Fauquier County, Loudoun County, Prince William County is $408,100.

Minimum Credit Score: Minimum of 620.

Qualifying Ratios: FHA Ratios of 31% payment to income/ 43% debt to income apply.

Required Borrowers Funds: Borrowers must have a minimum of 1% of the sales price verified as their own funds to be contributed toward the transaction or have available as reserves.

Pricing Options: Pricing Options are available. Rate on the first and second mortgage will be the same. No points or origination fee charged on the second mortgage.

In order to qualify for any VHDA loan product, including Homebuyer Tax Credit Plus, individuals must take a free VHDA homeownership education class. These free classes cover topics including credit issues, personal finances, home inspections, the role of lenders and real estate agents, and the closing process. In-person and online classes can be scheduled by visiting www.vhda.com.

 

Eligible buyers have the following three re-payment options:

  1.  Pay off the second mortgage with the Federal First Time Homebuyer $8,000 Tax Credit.
  2. Pay off the second mortgage over 29 years – and save the tax credit to pay for future emergencies, make home improvements, or pay off/pay down existing debt.
  3. Make principal payments on the second mortgage before the repayment period begins; this will reduce the required monthly payments for the remaining 29 years on the second mortgage.  

If borrowers are not eligible for the First Time Homebuyer Tax Credit, or the tax refund (if any) is not enough to repay the First Time Homebuyer Tax Credit plus loan, borrowers are still obligated to repay the second mortgage, plus all applicable interest.  For more information, visit http://www.vhda.com/sf/pdf/HomebuyerTaxCreditPlus.pdf or call 877-VHDA-123.

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Information about $8,000 tax credit is available at http://www.irs.gov/newsroom/article/0,,id=204671,00.html?portlet=7

Related posts about $8,000 Tax CreditFHA Approved Bridge Loans for $8,000 Tax Credit – Monetization 

 

 

NOTE: For details always contact your trusted Lender

NOTE: Contact me personally for a no obligation Buyer Consultation to see if you qualify for the Federal and VHDA $8,000 Tax Credit

 

SOURCE:  VHDA,  HUD, IRS

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