Prosperity's News You Can Use
March 13, 2015
Bettering Our Business: VHDA Announces NEW Down Payment Assistance Grant!
In an effort to stimulate the Spring home buying season for first-time buyers in Virginia, the Virginia Housing Development Authority (VHDA) announced a new Down Payment Assistance (DPA) Grant program. Because the resources for this program are extremely limited, they will be targeted to those households earning no more than 80% of VHDA’s current income limits. In the Hampton Roads MSA, a family of 2 or fewer members would need a household income under $64,320. For a family of 3 or more, the income limit is $75,040.
Grants will be limited to 3% of the lesser of purchase price or appraised value. The borrower is under no obligation to repay the grant (No Note or Deed of Trust is executed for these funds).
The DPA Grant funds are available to borrowers obtaining a VHDA first mortgage (Conventional, FHA, or Fannie Mae NO MI) and may be used for down payment only.
Loan programs requiring no down payment (VA, USDA) are not eligible for a DPA Grant. In addition, these limited resources may not be used in conjunction with a FHA Plus mortgage or other down payment/closing costs assistance programs. Borrower(s) must meet all qualification requirements for first mortgage.
VHDA has set-aside $5 million for this DPA Grant program. These resources will be made available on a first-come, first-serve basis. Once funds have been exhausted there will be no additional allocation. Each request for DPA Grant funds must be allocated by VHDA no later than June 30, 2015.
If you have a client who you think may qualify for this program, please call me for further details!
Weekly Market Update
Mortgage bond prices finished the week higher, which pushed rates lower. Rates were stable the first portion of the week with no data. Greek economic turmoil dominated newswires as eurozone officials debated what to do next. Weaker than expected data Thursday morning helped rates fall. Retail sales fell 0.6% versus the expected 0.4% increase, which was very rate friendly.
The producer price index fell 0.5% versus the expected 0.3% increase. The core, which excludes volatile food and energy prices, fell 0.5% versus the expected 0.1% increase. Consumer sentiment came in at 91.2 versus the expected 95.8 reading. The European Central Bank began their bond-buying program, which caused some unusual volatility across the global financial markets. Mortgage interest rates finished the week better by approximately 1/4 to 3/8 of a discount point.
All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Licensed by the NJ Department of Banking and Insurance. Also licensed in Delaware, District of Columbia, Maryland, North Carolina, Pennsylvania, South Carolina, Virginia, and West Virginia.
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Article found at Realtor.org