Solutions: Buying a Home with a Minimal Down Payment (Part 2)

If you’re a Virginia resident who wants to buy a home but you don’t have money saved up for a down payment and closing costs, there is a good possibility that you’re not out of the game yet.  The VHDA (Virginia Housing Development Authority) exists “to help put quality housing within the reach of every Virginian.”

The VHDA finances the FHA Plus Loan.  The FHA Plus is designed for home buyers who don’t have sufficient savings for a down payment and closing costs.  You do have to have some savings: 1% of the sales price of the home.  So if you’re looking to buy a $200,000 home, you’ll need to pony up $2,000.  That’s a lot less than the 20% conventional down payment.

Here are a few of the basics, straight from the VHDA website:

Program Details

  • Borrower(s) must have cash available equal to a minimum of 1% of the sales price.
  • The 30-year fixed interest rate for the first and second (both VHDA-financed) mortgage is slightly higher than our standard fixed rate programs.
  • FHA’s standard qualifying guidelines apply (Minimum 620 credit score).
  • Borrowers must complete a VHDA-approved Homeownership Education class.
2 Facts You Might Not Know

1.Part of my job as a Buyer’s Agent is to help home buyers navigate through the confusion of figuring out financing solutions to buying a home.  Have a question about the FHA Plus loan or financing in general?  Give me a call or send me an email.
2. If you’re a Buyer, it doesn’t cost you a thing to hire me as your Buyer’s Agent.  The Seller pays the commission for both the Seller’s Agent and the Buyer’s Agent when a house is sold.  (Yes, Real Estate is sort of confusing that way… but if you’re a buyer, that’s great news for you!)


Jay McGee used to live in Southeast Asia, doing language research and literacy development. Now he’s a Real Estate Agent with Keller Williams Realty. He gives a microloan to somebody in a developing country every time someone in Richmond buys or sells their home with him.

Speak Your Mind


HOPE International