There are resources for down payment assistance and closing cost assistance to help buy a home.
Down Payment Assistance
The Virginia Housing Agency (formerly Virginia Housing Development Authority) provides home buyers with grants to cover up to 15% of a home loan. The VHA is a self-supporting not-for-profit organization formed by the Commonwealth of Virginia to help Virginians with home ownership. The VHA provides home loans, down payment assistance, training, and more assistance to Virginia home buyers. Down payment assistance is provided via the VHA’s Down Payment Assistance Program. One of the qualifying criteria for applicants is that applicants cannot have held primary ownership in a home within the previous three years. (This is the definition of “first-time home buyer”, so don’t be deterred by that term with a misunderstanding that it means one never owned a home. It’s a confusing term, yes. But hopefully I just cleared it up for you.) The VHA Down Payment Assistance Program is administered by local providers across Virginia who will receive and process your application.
Closing Cost Assistance
A home buyer can receive funds from a third party such as a lender, a friend or family member, and others, to help cover closing costs. Some sellers will also provide closing cost assistance with what is referred to as Seller Concessions and this is cited in the residential sales contract. There are limits to the amount of such funds that can be used and those limits vary per type of home loan, yet the limits are generous. Don’t be shy about asking for help. Many lenders provide closing cost assistance, so contact multiple lenders and find one who will help.
Ask About It. There are many opportunities and resources for down payment assistance and closing cost assistance when buying homes. It can be quite challenging to identify them and to learn about them, unfortunately. Ask your lender and real estate agent for assistance. They should know a lot about this very important information. Feel free to contact us and we will be very happy to help. Our phone numbers and email addresses, and our Contact Us form, are located on each of our website pages.
