Virginia Housing Plus Second Mortgage Options and Benefits

Virginia Housing Plus offers a range of second mortgage options that can help homeowners achieve their goals.

One of the most popular options is the Virginia Housing Plus Down Payment Assistance Program, which provides up to 4% of the home's purchase price as a grant to help with down payment and closing costs.

With this program, homeowners can save thousands of dollars upfront, which can be a huge relief for many families.

The program is available to eligible borrowers who purchase a home in Virginia and meet certain income and credit requirements.

Homeowners who participate in the program can also qualify for lower interest rates and reduced mortgage insurance premiums, making homeownership more affordable.

A unique perspective: Purchase Money Heloc

Virginia Housing Programs offer a range of options for homebuyers. The VH / VHDA Plus Second Mortgage is a great example of this, allowing eligible first-time buyers to finance down payment or closing costs.

This program went into effect on August 15, 2018, and replaces the FHA Plus Loan Program. It's a VH / VHDA-financed and FHA-insured home loan that allows qualified buyers to borrow a percentage of their home's purchase price.

Explore further: Florida Assist Second Mortgage Program

The percentage borrowed depends on the borrowers' chosen loan program and credit score. For VHDA FHA first mortgages, the maximum second mortgage will be 3.5 percent of the sales price for those with a credit score below 680, and 5 percent for those with a credit score of 680 or above.

Here are the specific percentage limits for the VH / VHDA Plus Second Mortgage:

The combined totals of the two loans cannot exceed the VH / VHDA sales price limits. Borrowers must also complete a VH / VHDA-approved Homeownership Education Class.

Second mortgage options are worth exploring for homebuyers in Virginia.

Low interest rates on second mortgages make Virginia Housing FHA Plus loans a viable option for those looking for more flexible options.

Interest rates for second mortgages can range from 3.5% to 5.00% based on credit score.

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Second mortgage rates can vary significantly based on your credit score. Low interest rates on second mortgages make them a viable option for homebuyers.

If you have a good credit score, you can qualify for second mortgage rates as low as 3.5%. This is a great opportunity to save on interest payments.

However, if your credit score is lower, the interest rate on your second mortgage may be higher, ranging from 3.5% to 5.00%. This is still a relatively low rate compared to other financing options.

It's essential to shop around and compare rates from different lenders to find the best deal for your situation.

Intriguing read: Can You Deduct Second Home Mortgage Interest

The C&F Permanent Rate Buydown offers a way to lower your mortgage interest rate in a rising rate environment. This program allows you to permanently buy down your rate by 1.25% in rate, which can be a huge advantage.

For example, if the note rate is 6.25%, the buydown would reduce the rate for the term of the loan to 5.00%. This means your monthly payment will be lower than a 30-year fixed rate throughout the term of the loan.

If this caught your attention, see: Term Insurance for Home Loan

The cost of this is a below market fee of 2.25 points, which can be paid by the seller. This is a relatively low cost compared to other mortgage options.

This program is based on a 20% down payment with an initial period of 7 years amortized for 30 years. At the end of the balloon period, the balance is due and payable.

The C&F Permanent Rate Buydown allows homeowners to finance a higher-priced home at a lower rate for 7 years with a 30-year amortization. This can be a great option for those who want to take advantage of a lower interest rate.

The remaining balance can be refinanced at the end of the 7-year term, known as a balloon payment. This gives homeowners flexibility and options for their mortgage.

Suggestion: No Closing Costs Mortgage Loans

FHA Plus Loans can be a game-changer for homebuyers in Virginia, offering 100% financing with no down payment needed.

The second mortgage that comes with an FHA Plus Loan has an interest rate of 3.5% to 5.00%, depending on the borrower's credit score. This rate is relatively low compared to other financing options.

One of the benefits of FHA Plus Loans is that they can reduce federal taxes owed. This is because the interest paid on the second mortgage is tax-deductible.

FHA Plus Loans also have liberal credit qualifying, making it easier for borrowers to qualify for the loan. This is especially helpful for those who may have a less-than-perfect credit history.

Here are some key features of FHA Plus Loans:

The VH / VHDA Plus Second Mortgage program is a great option for first-time buyers in Virginia. It allows eligible buyers to finance down payment or closing costs.

This program replaces the FHA Plus Loan Program and is a VH / VHDA-financed and FHA-insured home loan. It's designed to offer down payment assistance to more homebuyers.

For another approach, see: Government Mortgage Loans for First Time Buyers

To qualify, borrowers can borrow a percentage of their home's purchase price, dependent on their chosen loan program and credit score. Borrowers with a credit score below 680 can borrow a maximum of 3.5 percent of the sales price when used with the VHDA FHA first mortgage.

For borrowers with a credit score of 680 or above, the maximum second mortgage is 5 percent of the sales price. This is a significant amount of assistance, especially for first-time buyers who may not have a lot of savings.

If you're using a VH / VHDA Fannie Mae first mortgage program, the maximum second mortgage is 3 percent for credit scores below 680, and 4.5 percent for credit scores of 680 or higher.

Additional reading: Mortgage Rates 680 Credit Score