First-Time Homebuyer Assistance Programs for 2022 in West Virginia
Last Updated on May 31, 2022 by Danielle McDonald
Mortgage Assistance for Homebuyers in West Virginia
The West Virginia Housing Development Fund offers the HOMEownership Program to assist individuals in achieving their homeownership dreams. This program also gives eligible homebuyers a fixed-rate mortgage loan for up to 100% of their home’s purchase price. Additionally, it is available with or without down payment assistance.
Two options are available for individuals who qualify for the HOMEownership program’s down payment assistance.
- A mortgage with a loan to value ratio greater than 90% or more can be eligible for $7,500
- A mortgage with a lower loan-to–value ratio can get $10,000.
Borrowers should meet the income requirements depending on the county’s income limits. All applicants must prove that they have a stable income and maintain an acceptable credit score. They must also not purchase a home that exceeds the county’s maximum price. All buyers who are buying a home in non-targeted areas such as: Barbour and Berkeley, Brooke, Greenbrier, Hancock, Harrison, Jefferson, Kanawha, Marion, Marshall, Mason Mercer, Monongalia, Morgan, Ohio, Putnam, Raleigh, Wood counties, must meet the first-time buyer requirements. Any person who owning a principal residence during the three-year period that ends on the closing date of the loan program is a first-time buyer.
All property must be in West Virginia and serve as the buyer’s primary residence. The HOMEownership Program includes single, detached, existing and stick-built homes, as well as duplexes, townhouses, condominium units and new mobile/manufactured double-wide homes. Five acres is the maximum amount of property that is transferrable with a home transaction. The HOMEownership Program also requires Homebuyer Education/Counseling to obtain conventionally insured loans or uninsured loans. The guidelines for Homebuyer Education/Counseling are the same as government-insured loans (FHA and VA)
Movin’ Up Program
Through the Movin’ up Program, the West Virginia Housing Development Fund is committed to helping moderate-income people achieve their homeownership dreams. This program isn’t just for first-time homebuyers. It is also available to those who have outgrown or want to make a move.
Movin’ Up offers buyers the option of down payment assistance and a home loan at a 4.25 percent/4.751% APR. For loans that have a loan to value greater than 90%, you can borrow $5,000. Loans with a lower loan-to–value ratio than 90% are eligible for $8,000.
The location of the home should be in the State of West Virginia. Movin’ Up only funds single-family structures, townhomes, and units in approved Planned Unit Developments.
Lender requirements may require applicants to have mortgage insurance. All types of insurance are accepted by the West Virginia Housing Development Fund, including FHA and VA insurances, RD insurance, and private mortgage insurance.
Movin’ Up is available for conventionally insured loans. The guidelines for Homebuyer Education/Counseling are the same as the government-insured loans (FHA, VA and USDA).
All applicants must be within the income limits. These are $113,760 for a single or two-person household, and $132,720 if there is a three-person household. They consider all income from the household members on the note or taking title to the property.
HOMEownership Down Payment and Closing Cost Assistance Program
The HOMEownership Down Payment and Closing Cost Assistance Program assists first-time homebuyers in Virginia to purchase decent homes. The Virginia Department of Housing and Community Development provides long-term, affordable housing for low-income families through this program.
Homebuyers must be eligible for credit and have income below 80 percent. This is based on the size and location of their property. They must be first-time buyers who have completed a HUD-certified homeowner education course. The applicant must pay 1% of the sale price if their income is between 50-80 percent of the AMI. Applicants with lower incomes than 50% will have to pay $500.
They allow one unit for a single-family property. In Two-unit properties, where one unit is the primary residence and the other is the home rental unit. They also allow townhouses and condominiums. However, manufactured housing must have permanent utility hookups. The manufactured housing must be on land owned by the owner of the manufactured housing unit, or land for which he has a lease for at least the applicable period.
VHDA Down Payment Assistance Grant
To help people get out of the renters’ trap, the Virginia Housing Development Authority (VHDA), offers the Down Payment Assistance Grant (DPA). They realized that not everyone who can afford their monthly mortgage payments has enough money to pay a down payment.
This is similar to the down payment first-time homebuyer assistance programs in Washington.
The DPA grant provides potential homebuyers with 2 – 2.5 percent of their purchase price. This also grants them the opportunity to make homeownership a reality. However, this grant can only be used in conjunction with VHDA eligible VHDA. These include VHDA Fannie Mae, both the Reduced MI purchase program and VHDA FHA. The DPA grant can’t be used with any other down payment assistance programs, including FHA Plus.
All applicants must be first-time buyers (those who haven’t owned or occupied a primary residence within the last 3 years), except if they are buying a home in a Target Area. The minimum credit score requirement for FHA loans is 620, Fannie Mae No MI is 660, and Fannie Mae Reduced MI is 640. The ratio of debt to income for an applicant must not exceed 45%. The income of applicants’ households must also be below the program limits. All household members must have earnings, no matter if they are borrowers or not.
The applicant must make the home his/her primary residence and live there at least one year.
Except if the property is located in a Target Area, all applicants must attend and complete a homebuyer education course. Before approval, they must take a VHDA, HUD Approved Counseling Agency, or Fannie Mae Framework course. Additionally, the Homebuyer Education Certificate lasts for two years.
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