The down payment grant through VHDA has helped many first-time homebuyers in Hampton Roads and across the state. This week, VHDA announced that to keep up with the high demand, some of the requirements will have to change. The changes will take affect for all loans locked on and after September 7th.
The changes include:
- Instead of the grant covering 3-3.5% of the down-payment based on the respective loan program (conventional with no mortgage insurance or FHA), the grant will cover 2-2.5%. The rest of the down payment will need to come from the borrower funds or acceptable gift.
- The minimum credit score on FHA will be 640 (previously 620).
- The maximum DTI will be 41% (previously 45%).
These changes will affect how much people may qualify for and how much they may receive in grant assistance. If you have buyers who are on the fence, this is the time to let them know about the changes.
Featured photo: CafeCredit.com (Flickr)