The Virginia Housing Development Authority (VHDA) is the state’s mortgage finance agency. Created in 1972 by the Virginia General Assembly, our mission is to help low- and moderate-income Virginians attain quality, affordable housing. Our vision is to be the Leading Mobilizing Force for Affordable Housing in Virginia®.
Our Guiding Principles are:
- Overcoming barriers to affordable housing
- Knowing our customers and offering programs, products and services that meet their needs and are easily accessible
- Attracting and retaining associates who are knowledgeable, mission-driven, collaborative, customer-focused and have a can-do attitude
- Using resources efficiently and effectively - people, time, money, technology and information - striking a balance between short- and long-term.
- Valuing relationships and respecting different perspectives
- Considering what is best for VHDA as a whole in order to address the affordable housing needs of the Commonwealth and its communities.
Since it was founded, VHDA has committed financing for 131,000 single family homes and 96,000 multifamily apartments.
Today's first time buyer is more challanged than ever before. There are very few 100% loan programs left for a first time buyer to use. For first time buyers In Virginia, VHDA answers this need with its FHA Plus program. Coupled with the 2009 First Time Buyers tax credit, we have powerful incentive to purchase property!
FHA Plus Loan Program
Low, fixed payments with liberal FHA qualifying
FHA Plus is a VHDA-financed, FHA-insured home loan program designed to assist qualified borrowers who need downpayment and closing costs assistance.
Borrower(s) must have cash available equal to a minimum of 1 % of the sales price.
The second mortgage is limited to 5 % of the lesser of sales price or appraised value.
The interest rate for the first and second (both VHDA-financed) mortgage is slightly higher than VHDA's standard fixed-rate programs. The terms are 30 years.
The combined total of the two loans cannot exceed VHDA sales price limit.
VHDA's standard sales price and income limits apply.
Click here to view General Eligibility Requirements
The standard FHA application/disclosure along with FHA PLUS program disclosure and application are required.
Buydowns are not available.
Both payments are to be included in the FHA shelter ratio.
FHA's standard qualifying guidelines will apply (including LP/DU Approval).
Closing for first and second mortgages will occur simultaneously.
Payments for the first and second mortgages will be due on the same date and paid to the same servicer.
Applicants must complete a VHDA-approved Homeownership Educational Program.
Federal Recapture Tax
Loans funded from this program could be subject to a Recapture Tax. The required payment of this tax is initiated by the sale or transfer of the financed property within nine years of the purchase date. This tax usually affects only owners who have realized unusually rapid increases in income in addition to significant appreciation in the value of the property.
Click here for an Online Recapture Calculator.
It is suggested potential buyers contact a tax advisor or the IRS for more information concerning the possibility of the payment of a Recapture Tax. Click here for an IRS explanation of the recapture of federal subsidy.
e-mortgageinfo.com is an approved VHDA lender. We offer each and every program sponsored by VHDA. We would love to help you with your loan!