A few months back, I shared a limited-time mortgage program for civil servants in which they could earn $8,000 towards the purchase of a home.
If you missed the news last time, there’s good news: There are still plenty of grants available.
In fact, out of the original 125 “8K” grants from the Virginia Housing Development Authority (VHDA) and the Federal Home Loan Bank (FHLB) of Atlanta, there are about 95 left.
How do you qualify for the $8,000 Community Heroes grant? Keep reading.
For starters, you must be a first-time homebuyer. That means you cannot have owned or occupied a primary residence in the last three years. You must also be an educator, work in a law enforcement agency or a fire/first responder agency (some restrictions apply).
For the Community Heroes grant, you must meet minimum and maximum household income limits. For example, a household of two in Hampton Roads needs to make annually between $56,651-$84,974. The income limits are based on household size and vary from city to city.
You can apply the grant to either your down payment or closing costs.
In addition, you are required to work with a mortgage company affiliated with the VHDA and the Federal Home Loan Bank (FHLB) of Atlanta. The grant is only applicable for FHA and Fannie Mae conventional loans through the VHDA. The borrower must have one percent of their own funds (or other allowable sources) in the transaction. This community heroes grant cannot be combined with other VHDA grants but in some cases may be combined with other grant programs.
Finally, the community heroes grant is considered a gift and not a lien against the property. That means there’s no need to repay the money.
Recently, I helped a client in Virginia Beach obtain the “8K” grant. She’s a middle school teacher who always wanted to own a home. The grant covered the closing cost and even some of the down payment. She was thrilled to save her own money instead of paying for closing costs.
It’s also important to note that VHDA offers two other grants outside of the community heroes grant program. One is called Down Payment Assistance (DPA) and the other is Closing Cost Assistance (CCA). To qualify for either one, the household income for two or fewer people in Hampton Roads must be less than $72,300. For a household of three or more, the income must be less than $84,300.
The DPA grant covers 2-2.5% of the purchase price based on the loan program (either FHA or conventional).
The CCA grant covers 2% of the purchase price. The grant applies to VA and USDA loans and can only be used for closing costs. The VA and USDA loan programs typically don’t require a down payment.
The VHDA offers several ways to help you purchase a home. But remember, there are only about 95 “8K” grants left, and Virginians across the state are eligible.
Jump on the program now and put yourself on the path 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.