Last Updated: 2010-07-16

Mortgages Loans

This is a 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 (NHS) 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. Homeowners are able to borrow up to one hundred and twenty 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 the Neighborhood Housing Services of Richmond website.

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 website or by calling (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 website or by calling (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 website or by calling (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 (804)231-4449 or visit the SCDHC website.

Virginia Supportive Housing (VSH)

Home by 5 Program

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 (804)788-6825 ext. 205 or visit the Home by 5 Program website

Virginia Housing Development Authority (VHDA) Loan Programs

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 (800)227-8432, visit the VHDA website, 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 (800)227-8432, visit the VHDA Step Rate website 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 (800)227-8432, visit FHS Plus loans on the VHDA website 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 (800)227-8432, visit the VHDA website 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 Bank of America Neighborhood Advantage website or call Bank of America at (804)788-3352 or (804)330-8090.

PNC Mortgage Loan Program

PNC Mortgage has a wide variety of mortgage loans created by national organizations such as Fannie Mae or Freddie Mac, as well as statewide 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 the PNC Mortgage website or call (877)508-3339.

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 (877)937-9357.

HUD/FHA Programs

For more information call the HUD Home Ownership Center at (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 Single Family FHA Mortgage website or call a HUD-approved lending institution.

Neighbor Next Door 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 Neighbor Next Door Sales Program website or visit the HUD Contact website.

Veteran Administration Programs (VA)

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 (800)933-5499 or visit them online at the Veterans Administration Loan Guaranty website.

First Time Homebuyer Loans

This is the list of programs for first time home buyers to help with the purchase of a first home. For complete details and information on participation in these programs, contact the organization directly.

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 website or by calling the Housing Authority at (804)780-4361.

Neighborhood Housing Services of Richmond (NHSR)
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 website or by calling the Housing Authority at (804)780-4293.

Federal Home Loan (FHL) Bank Atlanta
First Time Homebuyer Program

A major challenge to any potential homeowner is the ability to accumulate enough savings to pay for down payment and closing costs. For low-income families, the ability to save enough funds may seem insurmountable. The Bank's First-Time Homebuyer Program (FHP) is designed to address the funding needs of families who earn 80 percent or less of the area median income and are seeking to become homeowners. Specially designed for first-time home purchasers, the FHP provides matching funds for down payment and closing costs. No more than three dollars of FHP subsidy funds can be used for each dollar of a household's cash funds. Each family must compete a mandatory homebuyer-counseling program prior to receiving FHP assistance. Member financial institutions are encouraged to involve non-profit organizations in the activities of their first-time homebuyer program. For more information contact the local member bank.

Virginia Housing Development Authority (VHDA)
Home Repair Loans

VHDA offers low interest rate fixed loans for home improvement through the HUD Title 1 Home Improvement Program. Loans are available in amounts up to $25,000. For more information on this loan call VHDA at (804)782-1986.

Second Mortgages or Home Improvement Loans

Second Mortgages (Deeds of Trust) or Home Improvement Loan Programs

This is the complete list of all second mortgage or home improvement loans programs available to help with the renovation, rehabilitation, and upgrading costs associated with a home. For complete details and information on participation in these programs, contact the organization directly.

Elderhomes
Citywide Home Rehabilitation Loans

This loan, like the Citywide Home Rehabilitation grant, is to help with upgrading or replacing major structural systems such as, roofs, electrical systems, heating and air conditioning systems, plumbing as well as lead based paint removal of owner occupied homes. The loans are for a maximum of $28,000. The resident must also be at or below eighty (80) percent of the medium income level for the city and is available to home owners citywide. For more information on this loan program call ElderHomes of Richmond at (804)233-2827.

Neighborhood Housing Services of Richmond (NHSR)
Home Improvement Loans

This loan is for residents of the Neighborhood in Bloom communities. The loans are for up to $30,000 for the upgrading of electrical and/or plumbing systems, to install a new roof, paint your house or whatever you want. The loans are for terms of one (1) to thirty (30) years at a fixed rate of five (5) percent. The loans are restricted to low and moderate income households and all North Plan District residents (except census tract 102 and 104) are welcome to apply. NHS of Richmond also provides qualified contractor and construction management services. For more information on this loan call NHSR at (804)329-2500 ext. 20 or visit on the web at the Neighborhood Housing Services of Richmond website.

NOW Loan Program

NHS has a first mortgage product that allows home owners to purchase or re finance 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, call NHSR at (804)329-2500 ext. 20 or visit the Neighborhood Housing Services of Richmond website.

Low Payment Improvement Loans

This loan is for residents of the Neighborhood in Bloom communities. The loans are generally do not exceed $6,000 and are for the upgrading of electrical and/or plumbing systems, to install a new roof, paint your house or whatever you want. The loans are for terms of one (1) to thirty (30) years at a fixed rate and at and repaid at $25 per month. The loans are restricted to low and moderate income households and all North Plan District residents (except census tract 102 and 104) are welcome to apply. NHS of Richmond also provides qualified contractor and construction management services. For more information on this loan call NHSR at (804)329-2500 ext. 20 or visit on the web at the Neighborhood Housing Services of Richmond website.

Virginia Housing Development Authority (VHDA)
Home Repair Loans

VHDA offers low interest rate fixed loans for home improvement through the HUD Title 1 Home Improvement Program. Loans are available in amounts up to $25,000. For more information on this loan call VHDA at (804)782-1986.

Home Repair Grants

This is a list of all grants available to help with the renovation, rehabilitation, and upgrading costs associated with a home. The grants are available only in specific neighborhoods. The grants may also have age and income restrictions. For complete details and information on participation in these programs, contact the organization directly.

ElderHomes Programs
Emergency Home Repair Program

ElderHomes offers grants that average $2,500 for home repair to qualified applicants throughout City of Richmond. Contact ElderHomes at (804)233-2827 for specific details on the grant and to see if you qualify.

Volunteer Home Repair
Tax Lien Release Program

ElderHomes offers assistance and the materials for minor home repair to seniors and their familes. Contact ElderHomes at (804)233-2827 for specific details on the grant and to see if you qualify.

Weatherization

ElderHomes offers grants of up $2,200 per household for the weatherization of their owner occupied home. These emergency assistance grants are for the very low-income households throughout the city and are targeted at reducing future utility bills. Contact ElderHomes at (804)233-2827 for specific details on the grant and to see if you qualify.

Virginia Housing Development Authority (VHDA) - VHDA TaxCredits

Low Income Housing Tax Credits

The Federal Low-Income Housing Tax Credits (LIHTC) program is sponsored by the US Treasury Department and administered by VHDA in Virginia. The program provides a federal income tax credit to private individuals, investors or corporations who participate in the construction or redevelopment of low-income housing. The credits are taken annually over a period of 10 years. The program may reduce payable taxes by up to $25,000 of non-passive income. For more information on the steps required for this tax credit call VHDA at (800)227-8432 or (804)343-5663 or visit the VHDA web site.

Code Enforcement Repair

ElderHomes offers assistance for owner occupants who have been cited for code violations who need financial help to fix the problems. Contact ElderHomes at (804)233-2827 for specific details on the grant and to see if you qualify.

Low-Income Housing Energy Assistance Program (LIHEAP)

ElderHomes offers energy assistance home repair grants (primarily heating related) to very low-income households through out the City of Richmond. The limit on the grant is $2,200 per household. Contact ElderHomes at (804)233-2827 for specific details on the grant and to see if you qualify.

Citywide Home Rehabilitation Grant

This grant, like the Citywide Home Rehabilitation loan, is to help with upgrading or replacing major structural systems such as, roofs, electrical systems, heating and air conditioning systems, plumbing as well as lead based paint removal of owner occupied homes. The grants are for a maximum of $28,000. The resident must also be at or below eighty (80) percent of the medium income level for the city and is available to home owners citywide. For more information on this grant program call ElderHomes of Richmond at (804)233-2827.

Neighborhoods in Bloom (N.I.B.) Rehabilitation Program

ElderHomes offers forgivable grants to $28,00 to owner occupants with incomes at 80% or less of Area Median Income for the rehabilitation of their homes in the six Neighborhood in Bloom areas. Funds can be used for substantially upgrading or replacing the major structural systems i.e., roofs, electrical systems, heating and air conditioning, plumbing as well as lead based paint. Contact ElderHomes at (804)233-2827 for specific details on the grant and to see if you qualify.

Neighborhood Housing Services of Richmond (NHS of Richmond)

Emergency Home Repair Grants

This grant is available in the Barton Heights Neighborhood. The program is restricted to people over the age of sixty who are in need of basic home repair. It is designed to help with the repair and correction of building code violations, health and safety issues. For more information on this loan, call NHSR at (804)329-2500 ext. 20 or visit the Neighborhood Housing Services of Richmond website.

Neighborhood Ownership Works (NOW) Grants

The NOW grant program is available to assist anyone interested in financing a home in the City of Richmond. Offering competitive rates, and no upper income restrictions, these grants are available for home purchases, renovations, and refinancing with renovation. The grants are available up to $3,000. For more information on this grant call NHSR at (804)329-2500 ext. 20 or visit the Neighborhood Housing Services of Richmond website.

Forgivable Loan Programs

ElderHomes Corporation Programs - Citywide Home Rehabilitation Loans

This loan, like the Citywide Home Rehabilitation Grant, is to help with upgrading or replacing major structural systems such as, roofs, electrical systems, heating and air conditioning systems, plumbing as well as lead based paint removal of owner occupied homes. The loans are for a maximum of $28,000. The resident must also be at or below eighty (80) percent of the medium income level for the city and is available to home owners citywide. For more information on this loan program call ElderHomes of Richmond at (804)233-2827.

Downpayment and Closing Cost Assistance

This is a list of down payment and closing cost assistance programs available to help reduce the cost to purchase a home. For complete details and information on participation in these programs, contact the organization directly.

ElderHomes Corporation

Closing Cost Assistance

ElderHomes offers grants to cover closing costs for person whose income is 80% or below the area median income for the City of Richmond. Contact ElderHomes at (804)233-2827 for specific details on the grant and to see if you qualify.

Neighborhood Housing Services (NHS) of Richmond

Down Payment and Closing Cost Assistance

Down payment and closing cost assistance grants and loans are available in all low-moderate income census tracts and minority census tracts in the City of Richmond who are using NHS other loan products. Loans payments are as low as $50 per month for homebuyers who need down payment or closing cost funds. For more information on this grant or loan ,call NHSR at (804)329-2500 ext. 20 or visit the Neighborhood Housing Services of Richmond website.

Housing Opportunities Made Equal, Inc. (HOME) Programs - Down Payment and Closing Cost Assistance

HOME offers grants of up to $5000 for down payment and closing cost assistance to qualified applicants. Contact HOME at (804)354-0641 for specific details on the grant and to see if you qualify.

Tax Credit Programs

This is the complete list of all tax credits available to help reduce the costs associated with purchase, refinancing, rehabilitation, and other costs of a home. For complete details and information on participation in these programs, contact the organization directly.

City of Richmond - Office of the City Assessor

Tax Abatement Program for Rehabilitated Real Estate

The city offers partial abatement of real estate taxes for qualifying rehabilitated or replaced structures. For properties that qualify, the initial increase in real estate taxes caused by rehabilitation or replacement will be excused for ten to fifteen years, depending on the district. The program has also been extended to include properties that are rehabilitated by Disadvantaged and Minority Businesses (MBE or DBE). The DBE and MBE properties maybe located anywhere in the city. Property owners must apply to the program and for full information including provision for qualifying for this partial tax exemption program, or to get an application, contact the Assessor's Office.

Virginia Department of Historical Resources

Tax Act Program

The Tax Act Program gives Virginia the authority to allow owners of historic properties to receive a 20% federal rehabilitation tax credit and a 25% state tax credit if they rehabilitate the property. Only "income producing" property as defined by the IRS is eligible for the federal tax credit, owner occupied singe family homes are not eligible. The property must be listed on the National Register of Historic Places and The Virginia Landmark Register. Specific requirements for the types of property, the use of the property and all other requirements can be found in the "Rehabilitation Tax Credits - A Taxpayer'S Guide" published by the department. Properties that are not on the list of Historic Places or in a Historic District and were built prior to 1936 are eligible for a 10 percent federal tax credit. For more information on the program or to receive the enrollment forms, call (804)367-2323 or visit the DHR website.

Virginia Housing Development Authority (VHDA) - VHDA Tax Credits

Low Income Housing Tax Credits

The Federal Low-Income Housing Tax Credits (LIHTC) program is sponsored by the US Treasury Department and administered by VHDA in Virginia. The program provides a federal income tax credit to private individuals, investors or corporations who participate in the construction or redevelopment of low-income housing. The credits are taken annually over a period of 10 years. The program may reduce payable taxes by up to $25,000 of non-passive income. For more information on the steps required for this tax credit call VHDA at (800)227-8432, call (804)343-5663 or visit the VHDA website.

State Tax Credit Rent Reduction Program

This program was designed to increase and preserve the supply of affordable housing for seniors and disabled people while helping property owners fill vacant units and/or offer reduced rents to current residents. In exchange for offering rent reductions of at least 15 percent below the rent charged for a comparable unit, the owner receives a credit on his or her state taxes that is equal to 50 percent of the annual value of the reduction. For example, if 10 units are reduced by $100 per month and are occupied for 12 months, the owner would receive a tax credit of $6,000. The owner cannot receive credits for reductions given prior to the property being approved by VHDA. For more information on the steps required for this program call VHDA at (800)227-8432, call (804)343-5663 or visit the VHDA website.

Loans and Grants for Businesses

For a list of business loan and grant programs available to help reduce the costs to purchase, refinance, rehabilitate and other costs associated with the purchase of a property, refer to the Department of Economic & Community Development's Incentive Programs section.

Tax Credits for Businesses

This is a list of tax credits available to businesses to help reduce the costs associated with purchase, refinancing, rehabilitation, and other costs of a home. For complete details and information on participation in these programs, contact the organization directly.

City of Richmond - Office of Real Estate Services

Tax Lien Release Program

This program is designed to help facilitate the private sale of tax delinquent properties in the city. The program is available to a property owner who meets the following criteria:

  1. The property is assessed at less than $50,000.
  2. City tax liens exceed 25% of the assessed value of the property.

Upon approval of the application, the city will release city tax liens in excess of 25% of the assessed value or contract price, whichever is greater.

The city will release 100% of all city tax liens if the owner donates the property to a designated housing agent of the city (i.e., RRHA or a community development corporation) or an approved non-profit organization. Certain conditions apply to both the buyer and the seller of the property. For more information on this program and its specific conditions needed to qualify call (804)646-3727.

Virginia Department of Historical Resources

Tax Act Program

The Tax Act Program gives Virginia the authority to allow owners of historic properties to receive a 20% federal rehabilitation tax credit and a 25% state tax credit if they rehabilitate the property. Only "income producing" property as defined by the IRS is eligible for the federal tax credit, owner occupied singe family homes are not eligible. The property must be listed on the National Register of Historic Places and The Virginia Landmark Register. Specific requirements for the types of property, the use of the property and all other requirements can be found in the "Rehabilitation Tax Credits - A Taxpayer'S Guide" published by the department. Properties that are not on the list of Historic Places or in a Historic District and were built prior to 1936 are eligible for a 10 percent federal tax credit. For more information on the program or to receive the enrollment forms, call (804)367-2323 or visit the DHR website.

Virginia Department of Housing and Community Development (VDHCD)

General Income Tax Credit

A ten-year General Income Tax Credit Program is designed to help a business reduce its state tax liability in an amount of 80% for one year and a reduction of 60% for each year over the next nine years. The program is only available for businesses in State designated Enterprise Zones. For more information on this program call VDHCD at (804)371-7030.

Real Property Improvement Tax Credit

The Real Property Improvement Tax Credit is available for businesses and is equal up to 30% of qualified zone improvements with a maximum amount not to exceed $125,000 within a five-year period. The program is only available for businesses in State designated Enterprise Zones. For more information on this program call VDHCD at (804)371-7030.

Investment Tax Credit

The Investment Tax Credit is a negotiated amount that is set by the department and is not to exceed 5% of the qualified zone investments. The program is only available for businesses in state-designated Enterprise Zones. For more information on this program call VDHCD at (804)371-7030.

Virginia Housing Development Authority (VHDA) - VHDA Tax Credits

Low Income Housing Tax Credits

The Federal Low-Income Housing Tax Credits (LIHTC) program is sponsored by the US Treasury Department and administered by VHDA in Virginia. The program provides a federal income tax credit to private individuals, investors or corporations who participate in the construction or redevelopment of low-income housing. The credits are taken annually over a period of 10 years. The program may reduce payable taxes by up to $25,000 of non-passive income. For more information on the steps required for this program call VHDA at (800)227-8432 or (804)343-5663, visit the VHDA website.

State Tax CreditRent Reduction Program

This program was designed to increase and preserve the supply of affordable housing for seniors and disabled people while helping property owners fill vacant units and/or offer reduced rents to current residents. In exchange for offering rent reductions of at least 15 percent below the rent charged for a comparable unit, the owner receives a credit on his or her state taxes that is equal to 50 percent of the annual value of the reduction. For example, if 10 units are reduced by $100 per month and are occupied for 12 months, the owner would receive a tax credit of $6,000. The owner cannot receive credits for reductions given prior to the property being approved by VHDA. For more information on this program call (800)227-8432 or (804)343-5663, or visit the VHDA website.

Special Programs for Developers and Investors

Virginia Housing Development Authority (VHDA) - Multifamily Developer Program

For more than 30 years, VHDA has been financing, servicing and managing multifamily housing and processing and disbursing subsidies. The multifamily loan portfolio contains more than 1,100 closed loans. Additionally, the Multifamily Division administers more than $75 million in annual project based federal subsidy contracts, about $55 million in annual tenant based subsidy contracts and $13.5 million in annual federal Low-Income Housing Tax Credit Allocations. Applicants are encouraged to use the Multifamily Developer Funding containing complete lending parameters. Applications may be found on the VHDA web site or mailed upon request. You may direct all requests and questions to VHDA multifamily division at (804)782-1986.

FHA Programs

Mortgage Loan (Deeds of Trust) Programs

This is a list of FHA Mortgage Insurance Programs available for the consumer. Read through all of the programs and if you feel you need further explanation please contact the FHA listed agency for complete information or call the HUD Home Ownership Center at (800)440-8647

FHA Mortgage Insurance Programs Single Family Mortgage Insurance

The US Department of Houseing and Urban Development (HUD) developed this program to provide insurance for a person(s) to help purchase or re-finance a principal residence. Properties that contain between one to four units are eligible and up to 97% of the cost of the purchase is eligible for financing. The borrower is also able to finance closing costs and the up-front mortgage insurance premium into the mortgage. The borrower is still responsible for paying an annual premium. For more information on the steps required for this program visit the HUD FHA web page or call a HUD-approved lending institution.

Insured Loans for Rehabs

HUD insures loans to rehabilitate and make improvements on one- to four-unit homes that have been completed for at least a year. You may be eligible if you are an owner. There is no up-front mortgage insurance premium. Loans range from $5,000 to a maximum of $25,000. The loan may be used with a FHA loan to purchase the property. The program requires a five percent down payment for an owner occupant and a 15% down payment for an investor. For more information on the steps required for this program visit the HUD Rehab website or call a HUD-approved lending institution.

Rental Housing Insurance

This insurance program provides assistance to finance construction or rehabilitation of a broad range of rental housing. The insurance is for properties with five or more units. This programs is still available but is no longer used for new construction or substantial rehabilitation. It is the primarily insurance used for the HUD re-financing program. New construction and rehabilitation projects are currently insured under the Mortgage Insurance for Low and Moderate Income Buyers (see section below). For more information on the steps required for this loan visit the HUD Rental Insurance website or call a HUD-approved lending institution.

Mortgage Insurance for Rental Housing in Urban Areas

This insurance program is designed to assist developers of rental housing in Urban Areas that have been target for revitalization. The loans can be used for all types of rental units, including single family homes. The program covers new construction and revitalization in older neighborhoods. For more information on the steps required for this loan visit the HUD Mortgage Insurance web page or call a HUD-approved lending institution.

Mortgage Insurance for Rental and Cooperative Housing

HUD provides this program to assist private industry in the construction and rehabilitation or rental and cooperative housing for low- to moderate-income families. The program insures construction or substantial rehabilitation of projects with five or more units of multifamily rental or cooperative housing. Private developers can receive a maximum mortgage of 90% of the costs. For more information on the steps required for this loan visit the HUD Rental and Cooperative Housing web page or call a HUD-approved lending institution.

Mortgage Insurance for Purchase or Refinancing of Existing Multi family Rental Housing and Small Projects

This program is similar to the Mortgage Insurance for Rental and Cooperative Housing but is for smaller rehabilitation or for the re-financing of an existing mortgage. The program insures projects with five or more units of multifamily rental or cooperative housing. Private developers can receive a maximum mortgage of 85% of the costs. The mortgages are for a term of 10 to 15 years or 75% of the estimate life of the physical improvements. For more information on the steps required for this loan, visit the HUD Purchasing and Re-financing web page or call a HUD-approved lending institution.

Supplemental Loans for Multifamily Projects

HUD insures loans to pay for the improvements or additions to apartment projects. The loans under this program maybe used to either make additions and/or improvements to the property or to make energy conservation improvements. The loan amount may not exceed ninety (90) percent of the estimated value of the improvements, additions or equipment. For more information on the steps required for this loan visit the HUD Supplemental Loans web page or call a HUD-approved lending institution.

Growing Equity Mortgage Insurance

HUD Growing Equity Mortgage Insurance enables a household with a limited income that is expected to rise to buy a home sooner by making mortgage payments that start small and increase gradually over time. The increased payments are applied to reduce the principal owed on the mortgage and thus shorten the mortgage term. Anyone who intends to use the mortgaged property as their primary residence and who expects to see their income rise appreciably in the future is eligible to apply this mortgage insurance. For more information on the steps required for this program visit the HUD Growing Equity web page or call a HUD-approved lending institution.

HUD-Insured Loans for Special Credit Risks

In some cases, HUD insures loans for people who have had credit trouble and do not meet the standard credit requirements to buy low cost homes. Down payments can be as low as three percent, and closing costs can be wrapped into the mortgage. To get a HUD-insured loan for special credit risks, 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 this type of FHA loan. For more information on the steps required for this program visit the HUD FHA web page or call a HUD-approved lending institution.

Home Equity Conversion Mortgage Program

The Home Equity Conversion Mortgage Program (HECM) can enable an older home owning family to stay in their home while using some of its built up equity. The program allows such a household to get an insured reverse mortgage-a mortgage that converts equity into income. Because older persons can be vulnerable to fraudulent practices, the program requires that persons receive free reverse mortgage housing counseling from a HUD-approved reverse mortgage counseling agency before applying for a reverse mortgage. FHA insures HECM loans to protect lenders against loss if amounts withdrawn exceed equity when the property is sold. For more information on the steps required for this program visit the HUD Reverse Mortgages website or call HUD-approved lending institution.

Property Improvement Loan Insurance

HUD insures lenders against the losses on home improvement loans through this program. The program is designed for light to moderate of properties, as well as the construction of non-residential buildings on the property. The program only insures loans and does not apply to interest rates. The maximum insured loan amount for single family or non-residential structures is $25,000. The maximum insured loan amount for multi family properties in the program is $12,000 per family and $60,000 per structure. For more information on the steps required for this program visit the HUD Property Improvements web page or call a HUD-approved lending institution.

Fannie Mae Programs

This is a list of Fannie Mae programs that are designed to help individuals and families become homeowners. For more information on Fannie Mae's Programs or on locations of Fannie Mae lenders call the Fannie Mae Fulfillment Center at (800)471-5554.

ElderHomes Programs

The Community Home Buyer's Program

This program is Fannie Mae's signature affordable housing product. This low five-percent down payment mortgage is a 15- to 30-year fixed-rate mortgage with 33/38 debt-to-income ratios. No cash reserves are required, and the income limit can be removed if the borrower purchases his or her future home in a designated central city or in an eligible minority or low-income census tract. Homebuyer education is required, but can be waived in certain circumstances. Post-purchase early delinquency counseling is recommended, but not required.

The 3/2 Option

This mortgage product makes it easier for low and moderate-income borrowers to obtain the required five-percent downpayment for a 15- to 30-year fixed rate mortgage. With the 3/2 Option, borrowers only need three-percent from their own funds for the down payment, and two-percent can come from either a gift from a family member, or a grant or unsecured loan from a non-profit organization, public agency. Under certain conditions, secured financing from a public agency or non-profit organization will suffice. No cash reserves are needed at closing. Homebuyer education is required, and post-purchase delinquency counseling is recommended, but not required.

Fannie Mae's Community HomeBuyer's Program Start-Up Mortgage

This mortgage is a 30-year fixed-rate mortgage that is designed to help homebuyers with modest incomes qualify more easily for a mortgage loan. Fannie Mae's Community Home Buyer's Program Start-Up Mortgage is a graduated payment mortgage where interest-only payments are dues the first year. Afterwards, monthly payments (not the interest rate) increases 2 percent each year until the loan becomes fully amortizing. When the loan becomes fully amortized, the monthly payment will be fixed for the remainder of the loan's term. A five-percent down payment is required and must come from the borrower's own funds. The debt-to-income ratios are 33/36, and one month's payment reserves are needed at closing. Face-to-face homebuyer education and post-purchase early delinquency counseling are required.

This is a print version of the webpage. The navigation of the site has been removed through the print css. If you require a printout of the page as it looks in your browser, please use screen capture.