The on again, off again, opportunity to use the $8000 tax credit as a down payment is back on again. At least if you get a VHDA loan.

The guidelines for the program are here. The program utilizes a second mortgage to make this happen. That second mortgage requires no mortgage payments for the first year and has a 0% interest rate during that year. You have multiple options on how to deal with the second mortgage after that first year.

It's worth taking a look at this program if the only thing keeping you from owning a home is coming up with a down payment.

If you need help finding a VHDA lender, let me know. I'd be happy to help!

There are lots of little bits of information so thought I'd do a blog post today that just hits a few different topics.

As part of the stimulus package that both the House & Senate have now passed the loan limits for Fannie Mae and Freddie Mac have been increased. This has the potential of helping stabilize the housing market since those with an ARM on a house worth more than $417,000 may now be able to refinance more easily. That may mean fewer forclosures which may mean less downward price pressure. See this CNBC article for more information.

The Virginia Housing Development Authority (VHDA) has been a great source of mortgages for first time home buyers in Virginia. Unfortunately, they're not immune to what's been going on in the credit markets. They've suspended some of their programs and they will now only loan up to 97% of the value of the home. This will definitely hurt first time home buyers in Virginia and the sellers who hope to sell to them.

You've heard the old adage "work like you don't need the money". These days it's a tough one, but I'm proud to say I've run into a lot of my fellow real estate agents lately who are living this. (Trust me, most of them DO need the money!) These are the days I'm proud to say I'm a REALTOR.

The VA Senate finance committee approved SB768 on Wednesday. This reduces the cash proffers that builders must give to communities for roads, schools, hospitals etc. that are needed to support new development. This is an incredibly bad idea. Theoretically the idea is to reduce the cost of homeownership.  In reality it will force many communities to halt new development. This deserves its own blog post and I'll get to that down the road.

Happy Friday!

VHDA (Virginia Housing Development Authority) is the state's home mortgage finance agency. It exists to help first time home buyers in the state of Virginia. Unfortunately, far too few homebuyers are aware of this agency and its programs. Not all lenders participate and if the lender you talk to isn't a part of the program you will probably never hear about it.

VHDA has programs that allow you to buy with no money down.  They have programs that allow you to purchase a home at a lower interest rate. There are a large number of programs available to meet a variety of needs.  But the bottom line is always their goal to make owning your own home more affordable for more Virginians.

There are income eligibility requirements and most of their programs are aimed at first time homebuyers.  There are also limits on the sales price of the home you can purchase.  Given the wide disparity of real estate markets in the state of Virginia, it's a good thing they've set those numbers based on region/area. The table below gives you the latest information on income and sales price limits.

If you think VHDA might have a program that would be beneficial for you, you can check out their web site at http://www.VHDA.com

Or, you can contact me Julie@JulieEmery.com and I'll put you in touch with a loan officer who works with VHDA. It makes sense to take advantage of every program available to you!