First Time Home Buyer

 Programs in Virginia

Complete First Time Home Buyer Programs Available in Virginia.

The state agency created by the legislature in Virginia to offer first time home buyer programs is the Virginia Housing Development Authority. Here is a summary of the current first time home buyer programs that are offered:

1st Choice Program

1st Choice helps more first-time homebuyers compete in today’s competitive market!

Initial monthly payments are reduced by 25% or more the first 7 years!

1st Choice:
• Fixed rate conventional 30-year loan
• Interest-only payments for the first 7 years
• No mortgage insurance is required
• Required principal payments begin in 8th year

Qualified buyers pay ZERO down payment.

1st Choice is perfect for homebuyers who anticipate their income increasing and are
trying to purchase in rapidly appreciating markets.

1st Choice puts you in control of your payments. You can make principal payments at
anytime with no penalty.

Applicants must have a good credit history and stable employment history.

Step Rate Loan Program

VHDA's Step Rate loan program increases housing affordability with reduced interest rates for the first two years of the loan.

Lower payments
Less risk than adjustable rate mortgages
No buydown fees
To offset the lower rate, a slightly higher rate (0.50 percent above our standard rate) is charged during years 3-30. The interest rate is then reduced by 2 percent the first year, by 1 percent the second year, and remains fixed for years 3-30.

Flex Advantage

VHDA’s newest Flex product, giving homebuyers the advantage of an all-inclusive loan. Finance up to 104%, including the closing costs.

Financing for closing costs

Zero downpayment

No mortgage insurance

Lower monthly payments

Loan limits up to $417,000

For complete details on these first time home buyer programs available to Virginia residents, visit the Virginia Housing Development Authority website.

It is highly recommend that you also visit the First Time Home Buyer Grants page for free assistance with the down payment. This will make it possible for many people to qualify for a first time home buyer loan who wouldn't have qualified without the grant assistance.

Best Lender For First Time Home Buyer Loans

Unfortunately, some lenders do not like to work with first time home buyers (due to not having a track record), and prefer instead to only provide mortgages to people who have previously owned a home. If you do not need help with the down payment and are not in need of any state program, but simply want to apply for a mortgage, we recommend  ING DIRECT Orange Mortgage They have great rates, an easy online application, and welcome first time home buyers. Additionally they have not been as severely hurt by the subprime mortgage crisis and are still approving the majority of applications.

Other First Time Home Buyer Programs & Resources