Virginia Homebuyer Tax Credit Plus Loan Program From Virginia Housing Development Authority

First time home buyers in Virginia can buy a home using the Virginia Housing Development Authority (VHDA) new mortgage loan program called the Home Buyer Tax Credit Plus Program.
This program is designed to help qualified first time home buyers in Virginia overcome a shortage of money for down payment and closing costs where they otherwise qualify for a mortgage. The Virginia Home Buyer Tax Credit Plus Program is also designed to help first time home buyers get money in advance in the form of a loan for the federal $8000 home buyer tax credit.

Virginia Homebuyer Tax Credit Plus Loan Program Details and Features

The program was developed to be used in conjunction with the $8000 home buyer tax credit from the IRS that runs out by December 1, 2009.

The interest rate for the second mortgage is 0% for the first year.

There are no payments on the second mortgage for the first year that the loan is in place.

The maximum loan amount of the second mortgage is up to 5% of the home’s purchase price.

The second mortgage loan must be used in combination with a first mortgage program from VHDA.

Home buyers must meet specified income and purchase price limits depending on the location of the home being purchased.

Borrowers must be first time home buyers.

Home buyers must have credit scores of 620 or higher.

Homebuyers must have 1% of the sales price of their own funds in oder to qualify.

For more information on Virginia Housing first time home buyer and down payment assistance programs visit: Down Payment Assistance and First Time Home Buyer Programs in Virginia.