As of May 2019, the VHDA, a nonprofit organization that helps Virginians attain quality affordable housing, announced a new grant program on a first-come, first-served basis. Through a partnership with the Federal Home Loan Bank of Atlanta called the Community Heroes Grant Initiative, VHDA plans to distribute 125 individual grants of $8,000 each for a total of $1 million. These grants will be available to eligible community heroes throughout the Commonwealth who make more money than the guidelines set forth in most down payment assistance programs.
To qualify for the grant, you must be a first-time homebuyer. That means you cannot have owned and occupied a primary residence in the last three years. You must also be a public school educator or first responder as defined in the descriptions below.
Educator: An employee of an accredited or state-recognized or public school, a certified teacher or administrator in an education public school, or an employee of a post-secondary level public educational institution, or retired as one of the above as determined by VHDA at their sole discretion.
First Responder: An employee of a law enforcement agency or the fire department administered by a federal, state, or local government, or sworn law enforcement officer responsible for crime prevention and detection, or criminal incarceration; or a sworn member of a fire department involved in fire suppression or prevention, emergency medical response, hazardous materials incident response, or management/response to terrorism; or any other first responder, such as an emergency medical technician or National Guard or Reservist; or retired as one of the above as determined by VHDA at their sole discretion.
For the $8,000 grant, you must meet minimum and maximum household income limits. For example, a household of two in Hampton Roads needs to make $54,201-$81,300 annually. The income limits are based on household size and vary depending on the location of the property being purchased.
In addition, you are required to work with a mortgage company that is part of the FHLB of Atlanta member network and is also approved to offer VHDA loan programs. The grant is only applicable for FHA and Fannie Mae conventional loans through VHDA. The borrower must have 1% of the sales price into the transaction from their own funds (or other allowable sources). The grant cannot be combined with other VHDA grants, but in some cases may be combined with other grants.
Finally, the Community Heroes grant is considered a gift and not a lien against the property. That means there’s no requirement to repay the money.
VHDA offers a variety of ways to save money on the purchase of a home. As for the $8,000 Community Heroes grant program, remember it’s on a first-come, first-served basis. For a list of participating lenders in your area, you can contact VHDA.
Act now and start on the road to homeownership!
Shikma Rubin is a loan officer at Tidewater Home Funding in Chesapeake (NMLS #1114873). She enjoys the chance to lead workshops and webinars on how to buy a home in 2019. Have mortgage questions? You can reach her at srubin@tidewaterhomefunding.com or 757-490-4726.