First-time home buyers and some other buyers may be eligible for down payment assistance, lower interest rate loans, closing cost assistance and a mortgage tax credit from state and local government regardless of the impact of the novel coronavirus. Programs may be tweaked with higher credit standards or have delays because of some offices being closed during the pandemic, but most are available as usual, according to DownPaymentResource.com, a site that provides searchable information about homeownership programs nationwide.
For example, Loudoun County recently announced the availability of $8 million in new funds to help first-time home buyers from Virginia Housing, a Richmond-based not-for-profit organization supporting affordable housing for Virginians. Its Sponsoring Partnerships and Revitalizing Communities program provides lower interest rate loans for qualified first-time buyers. The qualifications include an annual household income of 70 percent to 100 percent of area median income, between $88,200 and $126,000 for a household of four. In addition, the buyers must have lived or worked in Loudoun County for at least six months before applying. The maximum home price under this program is $525,000.
Additional homeownership programs are also available from Loudoun County and other counties in Northern Virginia. For guidelines about how to qualify, income limits and property price limits, visit the counties’ respective sites:
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Share this articleShareStatewide programs are also available through Virginia Housing, such as:
Low-interest loans: Buyers can apply for a low-interest loan through Virginia Housing. The minimum credit score depends on the loan program and ranges from 620 to 660. In Northern Virginia, this program is limited to borrowers with a maximum household income of $138,200 if they live in a one- or two-person household or $161,300 if they live in a household with three or more people. The maximum home price is $525,000.
Down payment grant: Buyers who have not owned a home within the previous three years may be eligible for a grant of 2 to 2.5 percent. In Northern Virginia, the maximum income for buyers to apply for this grant is $110,500 for a one- or two-person household and $129,000 for a household with three or more people. The grant can be used toward the purchase of a home with a maximum price of $525,000.
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Mortgage tax credit certificate: A mortgage tax credit certificate is available to first-time buyers who finance their home with a Virginia Housing loan. The tax credit can be used every year while the buyers keep that loan to take a credit on their federal income taxes for 10 percent of their mortgage interest payment. The rest of their mortgage interest can still be deducted even if they use the tax credit.
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