Mortgage Loans
This is a complete list of Mortgage Loan Programs available
for the consumer. Read through all of the programs and if you
feel you need further explanation please contact the respective
agencies for complete information. Mortgage Loans on real estate
in Virginia are legally referred to as Deeds of Trust.
Local Community Development Corporation(CDC) Lenders
The following section contains a list of local non-profit agencies that also
provide funding for the purchase of a new home. The agencies
over varies terms and rates for their mortgages that are designed
to help first-time and low-income buyers in the City of Richmond.
Neighborhood Housing Services (N.H.S.) of Richmond Programs
Neighborhood Ownership Works (NOW) Loan Program
NHS has a first mortgage product that allows home owners to purchase
or refinance and rehabilitate their home with competitive
rates and flexible terms. Home owners are able to borrow up
to one hundred and twenty (120) percent loan to value. It
allows home owners in depressed real estate markets within
the City to borrow above appraisal to renovate homes. Construction
management services are included. This offer can be combined
with down payment and closing cost assistance. For more information
on this loan program call NHSR at (804) 329-2500 ext. 20 or visit on the web at the Neighborhood
Housing Services" of Richmond web site.
Richmond Redevelopment and Housing Authority (RRHA)
Housing Choice Voucher Homeownership Program
The Housing Choice Voucher Homeownership Program permits
eligible participants in the HCVP (Section 8) the option
of purchasing a home with their HCVP assistance rather than
renting. The home must pass an initial Housing Quality Standards
(HQS) inspection conducted by RRHA and an independent home
inspection before RRHA may approve the purchase by the family.
Applicants for this program must meet certain guidelines,
which maybe obtained from them at the RRHA
web page or by calling the Housing Authority at (804)
780-4361.
Market Rate Homeownership Program
RRHA works with private developers to make newly constructed, high-quality, market-rate
homes affordable for low- and middle-income families. RRHA creates financing
packages that offer one or more of the following: grants, assistance with down
payments and closing costs. These market-rate homes are located in neighborhoods
throughout the city of Richmond. The homes, valued between $100,000 and $150,000
are made affordable by financing packages that may include grants and assistance
with down payments and closing costs. More information on these homes maybe obtained from them at the RRHA
web page or by calling the Housing Authority at (804)
780-4918.
HOPE VI Homeownership Program
HOPE VI, a program that is revitalizing the Blackwell neighborhood in south Richmond, will bring 188 new,
well-constructed single-family detached houses to Blackwell, along with apartments
and other community and family services. Additionally, 120 single-family homes will
be constructed in other neighborhoods in the city of Richmond - Randolph, Fulton, Carver, Old Manchester and Churchhill.
Through RRHA's homeownership program, low- and moderate-income families will purchase these homes.
The 3-, 4- and 5 -bedroom homes offer modern amenities and charming details such as porches, picket fences and back yards.
Construction is underway. Additional information on these homes and the HOPE VI Program maybe obtained from them at the RRHA web page or by calling the Housing Authority at (804)
780-4293.
Southside Community Development and Housing Corporation (SCDHC)
The Home Ownership Program (HOP)
Southside Community Development and Housing Corporation (SDHDC) seeks to expand opportunities for attractive,
safe and affordable housing by constructing new homes, and rehabilitating older homes for Southside residents.
The Home Ownership Program (HOP) was established as a means to that important beginning. The HOP provides new
and rehabilitated homes within Southside for first time homebuyers who meet the HUD income qualification guidelines
and who have a satisfactory credit history. A minimum down-payment is required for SCDHC homes. For more information on
this program call SCDHC at (804) 231-4449.
Virginia Supportive Housing (VSH)
Home by 5 Program
HomeBuy5 is a holistic homeownership program of Virginia Supportive Housing that moves families from homelessness to
homeownership within five years. Participants are assigned a certified credit counselor to help them develop a realistic
monthly spending, debt reduction and savings plan. Once a family has successfully completed the first three phases of
the program they enter into a Lease-Purchase contract with HomeBuy5 on a home that they have chosen within their price range.
During this time a portion of the rent is deposited into a special savings account called an IDA (Individual Development
Account). At the end of the Lease-Purchase contract the funds in the account are matched dollar per dollar up to $2,000.00
by HomeBuy5 to be used for the down payment. After a family has successfully secured an affordable mortgage loan and
purchased the property from HomeBuy5 they are required to attend Post-Purchase counseling workshops as well as home
maintenance workshops when available. Several volunteer opportunities exist within this program. For more information on
this program call Salathia Johnson at (804) 788-6825 ext. 205, .
Virginia Housing Development Authority (V.H.D.A.) Loan Programs
The following programs are actual mortgage options available through
a VHDA approved lender. For a complete list of VHDA lender click here. For a current
interest rate for VHDA lending, you can click here to visit the VHDA interest rate site.
Fixed Loan Rates Loan Program
The Authority offers thirty (30) year fixed rate loans at interest
rates below standard conventional loan programs. The loans
are available though VHDA-approved lending institutions. The
fixed rate loans are available as conventional uninsured or
with private mortgage insurance, FHA, or VA development loans.
For more information on the steps required for this program
call VHDA at 1-800-227-8432, visit the VHDA
web site, or call VHDA approved lending institution.
Step Rate Loan Program
The Step Rate Loan Program increases housing affordability with
reduced interest rates for the first to years of the loan.
The loan's interest rate is slightly higher, usually one-half
(0.50) percentage higher. This set interest rate is then reduced
by two (2) percent the first year, by one (1) percent the
second year and remains fixed for the years 3-30. The program
is open to everyone but VHDA annual income limits and sales
price restrictions do apply. For more information on the steps
required for this loan call VHDA at 1-800-227-8432,
visit the VHDA web site or call a VHDA-approved lending institution.
FHA Plus Loan Program
FHA Plus is a VHDA-financed, FHA insured home loan programs to
assist qualified buyers who need down payment assistance.
Minimum borrower contributions is one (1) percent of the sales
price. You can also apply for a second mortgage; which requires
three (3) percent of the sales price or the appraised value,
which ever is lower. The interest rate is one half (1/2) percent
above the VHDA standard rate. The program is open to everyone
but VHDA annual income limits do apply. For more information
on the steps required for this loan call VHDA at 1-800-227-8432,
visit the VHDA
web site or call a VHDA-approved lending institution.
1st Choice Interest Only Loan Program
This program offers low payments for the first 7 years of the loan.
The borrower can pay interest only (no principal) and no mortgage insurance to save up to 25% in initial payments.
Payments increase in the 8th year. Good credit and stable employment history is required. For
more information on the steps required for this loan call
VHDA at 1-800-227-8432, visit the VHDA
web site or call a VHDA-approved lending institution.
Local Banks/Lenders
Bank of America-Neighborhood Advantage Loan Program
Bank of America offers loan rate discounts to purchasers of
homes in low-to-moderate income census tracts within the City
of Richmond. Other eligibility criteria exist and should be
explored directly with the bank. For more information on this
loan visit their web
page or call Bank of America at (804) 788-3352 or (804) 330-8090.
Bank of America-Neighborhood Champions Loan Program
Bank of America offers this new flexible mortgage financing option with no income restrictions. The
loan program requires as little as $500 or even no money down. This program is
for school teachers, police officers, firefighters and medical workers who want to buy a
home in the community they serve. Other eligibility criteria exist and should be
explored directly with the bank. For more information on this
loan visit their web
page or call Bank of America at (800) 900-9000 or (804) 330-8090.
National City Mortgage-Rehabilitation (203 K) Loan Program
National City Mortgage offers the 203 K mortgage that allows
customers to purchase or refinance and include the cost of
repairs and improvements all in one convenient mortgage. For
more information on this loan program visit their web
page or call National City at (804) 288-1050 or toll free at (877) 216-2039.
National City Mortgage-Homestyle Loan Program
National City Mortgage has a wide variety of mortgage loans
created by national organizations such as Fannie Mae or Freddie Mac,
as well as State-Wide bond programs providing funding for households
that meet certain income and/or residential qualifications. These
loans offer the benefit of a low down payment and a low interest rate.
If you have good credit, but have difficulty with the requirements of standard mortgages,
ask us about special first-time home buyer financing and education programs.
For more information on this loan program visit their web
page or call National City at (804) 288-1050 or toll free at (877) 216-2039.
National City Mortgage-Homestyle Jumbo Loan Program
National City Mortgage offers the Homestyle Jumbo
mortgage that is designed to assist our customers
whose needs exceed conforming loan limits. For
more information on this loan program visit their web
page or call National City at (804) 288-1050 or toll free at (877) 216-2039.
Wells Fargo Home Mortgage-Purchasing and Renovation Lending Program
Wells Fargo Home Mortgage Company offers a variety of renovation
lending programs. Renovation lending allows a borrower to
wrap the purchase money and renovation funds into one loan.
All renovation programs can re finance and renovate too. Renovation
lending is a variety of options involving conventional, FHA,
jumbo and equity lending products that were previously unavailable.
For more information on the programs that meet your needs
please call Richard Day at (804) 378-4940 or
toll free at 1-800-566-3557.
HUD/FHA Programs
For more information call the HUD Home Ownership Center at 1-800-440-8647
FHA Loans
If you're interested in buying a home and you meet their credit
qualifications, you may be eligible for a low down payment
of 3 percent. On a $50,000 home, that's a down payment of
$1,500, compared to $5,000 - $10,000 for most conventional
loans. You may also wrap your closing costs and fees into
the mortgage. HUD-insured loans are available citywide for
single family homes and 2-unit, 3-unit and 4-unit properties.
To get a HUD-insured loan, you need to apply to a HUD-approved
bank, mortgage company or savings and loan association. There
are no limits to the amount of funds available for FHA loans.
For more information on the steps required for this loan visit
the HUD
web site or call a HUD-approved lending institution.
Good Neighbor Sales Program
The program offers police officers, fire fighters, EMS and teachers a 50 percent
discount on HUD-owned, single family homes in certain designated
revitalization areas. For example if the home is listed on HUD for $200,000, the
program participant can buy it for $100,000. To be eligible, the participants must be employed
full-time and agree to make the homes their sole residence
for three years following the purchase or they must repay the discount. In addition,
teachers, fire fighters and EMS parties must work in the areas in which the homes are
located. To make a HUD home even more affordable, you may apply for an FHA-insured mortgage
with a down payment of only $100 and you may finance all closing costs.
For more information on the steps required for this loan visit
the HUD Good Neighbor Sales web site or call the Fulfillment Center at 1-800-225-5345.
VA Programs (Veteran Administration)
VA Guaranteed Loans
The advantage of a VA guaranteed loan is that the buyer may
not need to make a down payment, and that the lender receives
a certificate of guaranty from VA to protect against loss
from foreclosure. In this way the VA guaranty takes place
of a down payment which is normally required by lenders to
make a loan an acceptable risk. The VA guarantee does not
affect the rate of the loan, it is still a market rate loan
and the borrower is still subject to regular credit approval.
For more information on VA Guaranteed Loans, the process or
a list of VA lending institutions call 1-800-933-5499 or visit them online at the
VA web page.
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