Virginia Housing Conventional No Mortgage Insurance Options Explained

In Virginia, conventional no mortgage insurance options are available for homebuyers. These options allow buyers to avoid paying private mortgage insurance (PMI), which can save them a significant amount of money each month.

The main advantage of conventional no mortgage insurance options is that they don't require a down payment, so buyers can put as little as 3% down on a home. This is a big deal for many people who may not have enough savings for a 20% down payment.

Conventional no mortgage insurance options are also a good choice for buyers who have a good credit score, as they can qualify for a better interest rate. A good credit score can also help buyers qualify for a lower down payment.

Discover more: Low down Payment Conventional Mortgage Loan

If you're looking for a conventional mortgage option in Virginia, you're in luck. Virginia Housing offers two 30-year fixed-rate programs.

One of these programs, the Virginia Housing Conventional No Mortgage Insurance, is a great choice for borrowers with a higher credit score. To qualify, you'll need a minimum credit score of 660.

The requirements for applicants are straightforward: a down payment assistance of up to 3%, a debt-to-income ratio of 45%, and meeting Housing's income caps. You'll also need to complete homeownership education.

When it comes to property eligibility, the abode must be a single-family residence or approved condo in Virginia. Manufactured homes aren't eligible, but there's no top price or minimum acreage limitation.

Here are the key requirements for both programs:

Both programs can be paired with other programs that offer down payment assistance or a tax credit, making homeownership more affordable.

The Down Payment Assistance Grant is a valuable resource for first-time homebuyers in Virginia. It awards up to 1% of the purchase price to eligible buyers.

To qualify for this grant, you must be a first-time buyer or buying in a Target Area. This means you'll need to meet specific requirements to receive the funds.

The grant funds must be paired with a Virginia Housing conforming, no private mortgage insurance, or FHA first trust loan. You'll need to meet all the criteria for that initial loan to qualify.

This grant provides up to 1 percent of the home's purchase price to put toward a down payment.

A unique perspective: Using Rental Income to Qualify for Conventional Mortgage