Looking for a zero down home loan? The VHDA loan continues to be a great option, but it’s even better when the State of Virginia gives you a grant instead of loan you the extra cash for your loan.
Zero Down Home Loans – How does a VHDA Loan Work?
With a regular VHDA loan, you get one loan from your bank, and one loan from the state that pays what would normally be your down payment. There is both an FHA and Conventional option. For the FHA option, the minimum down payment would normally be 3.5%, so the state lends you that 3.5%. For the Conventional option, the minimum down payment would normally be 5%, so the state lends you that 5%. Either way, this is still a zero down home loan, since you’re not out of pocket any money.
Grant Money is Back!
Periodically, the state sets aside a certain amount of money in its budget for grant money that goes toward the 3.5% and 5% down payments. This money is an actual grant, not a loan, so it doesn’t need to be paid back! Typically, the state will offer this grant money until they reach a certain limit in their budget for the fiscal year. At that point, they’ll stop the grant program and revert back to the loan program for the VHDA loan.
Long story short, this is a great time not only to get a zero down home loan, but to also literally get free money from the state toward your home purchase.
One of the important things to remember with VHDA loans is that there are income limits involved with this program. Call me at 703-462-0700 or email me at DarrenRobertsonHomes@gmail.com to find out if you qualify for this type of loan.