16 — Say you saw it in The Real Estate Browser of Lynchburg — Volume 7 Number 14 www . LynchburgRealEstateBrowser . com
100 % Financing for Your New Home Anywhere in Virginia !
By Sherry Brady , NMLS 217258 , Branch Manager , Summit Mortgage Corporation
In the last edition , I discussed a no downpayment loan called a USDA loan . Today , I am going to take an in-depth look at another 100 % financing option called an FHA Plus loan . One of the best things about VHDA ’ s FHA Plus loan is that there are no geographic restrictions , other than the home must be located in Virginia , which makes this an excellent option for homes that won ’ t qualify for USDA .
This loan combines a 96.5 % FHA loan with a 3.5 % VHDA loan to make up 100 %. There are some restrictions to qualifying for this loan : there is a maximum sales price of $ 251,900 ; the home should ideally be on 2 acres or less , but waivers can be granted for up to 5 acres ’ maximum ; there are income limits of $ 73,600 for up to two people in the household , or $ 84,600 for 3 or more people ( for the Lynchburg and surrounding area ); you must be a first time homebuyer ( meaning that you have not had ownership in a home within the past three years ); you ’ ll be required to take a Homebuyer Education course given by VHDA ; and you must have a minimum credit score of 620 . This loan can only be used to purchase a home that will be your primary residence , and generally speaking , you ’ re not allowed to use the home for purpose of business .
Even though this is a 100 % financing loan , VHDA requires you to have at least 1 % of the sales price verified funds either invested into the transaction , or to have as cash reserves after the loan closes . Employment and income should be stable , reliable , and verifiable for at least the last two years . Job changes can be allowed if there were for upward mobility .
In order to qualify for this program , the new house payment “ PITI ” ( principal , interest , taxes and insurance ) should consume no more than 31 % of your gross income , and your new house payment plus all other installment and revolving debt should total no more than 43 % of your gross income . In some cases , up to 45 %, can be approved , but never higher . There is an up-front mortgage insurance premium and monthly mortgage insurance , and the seller is allowed to pay up to 6 % of the purchase price toward the buyers closing costs , pre-paid ’ s and points .
As always , the best place to start , if you think you ’ re ready to buy a home , is with a good lender ! Contact us or your lender today , and let us help make your dream of owning your own home a reality ! http :// www . lynchburgrealestatebrowser . com / index . php ?/ properties / price _ reduced http :// www . lynchburgrealestatebrowser . com / index . php ?/ properties / price _ reduced for the latest REDUCED properties . for the NEWEST LISTINGS .
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