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USDA

  The USDA Loan is a mortgage option available to some rural and suburban homebuyers. USDA Home Loans are particularly favorable to those living in rural or low-income areas. USDA Loans offer $0 money down, lenient eligibility requirements and competitive interest rates - due to the loan being guaranteed by the USDA. USDA stand alone as the only mainstream zero money down program available to borrowers that have not served in the military.

FHA

  A FHA loan is designed to help borrowers with lower credit scores or less cash than would ordinarily be needed for a down payment. FHA loans are designed only for primary residence purchases only. FHA loans are considerably easier to qualify for than conventional mortgages.

Conventional

  A conventional loan is issued by a private lender, such as a bank, credit union or other financial institution. It typically has stricter credit requirements than a government-backed loan. That's because the lender takes on more risk without a guarantee from a government agency if a borrower cannot pay. There are however some versions that will allow for both a lower down payment and even reduced mortgage insurance.

VA

  A VA loan is a mortgage loan that’s issued by private lenders and backed by the U.S. Department of Veterans Affairs. It helps U.S. veterans, active duty service members, and widowed military spouses buy a home. Rates are typically low, down payment can be $0 and there is no monthly mortgage insurance. . 

  There are four main types of Federally funded or nationally available down payment programs.

1. Grants, which are essentially gifts that never have to be repaid.
2. Loans (second mortgages) that have to be paid down along with with your main mortgage.
3. Loans (second mortgages) with deferred payments, which only have to be paid when you move, sell, refinance.
4. Loans (second mortgages) that are forgiven over a set number of years (often five, but up to 15 or 20), and only need repaying if you move, sell, refinance.

 Some DPA loans are interest-free, some have lower rates than your first mortgage, and others require the same or a higher rate than that.  The most common of these is the Federal Home Loan Grant. 

  The Virginia Housing Development Authority has a program just for first-time buyers. It offers a non-repayable grant of up to 2.5 percent of the home’s purchase price.

To qualify, you’ll need a minimum credit score of between 620 and 660, depending on the type of mortgage you choose. And your household income and the purchase price of your home must be below specified limits.

  Find out more about these down payment assistance grants on the VHDA website. And read HUD’s list of other homeownership assistance programs in the state.

 Most Virginia counties have some type of bond program that gains and loses funding throughout the year.