1.     FHA Plus Loan is a second mortgage loan for down payment and closing costs assistance which allows you between 3.5% and 5% of sales price. To become an eligible borrower, you have to contribute at least 1 % of the total sales price and to reach a credit score which varies between 620 - 679 and over 680 (according to the loan amount).

FHA Plus Loan requires you meet income and purchase price limits, according to the VHDA’s standard. You don’t have to be a first-time buyer, but the purchased home has to be your primary residence.

FHA Plus Loan requires you comply with the standard FHA application/disclosure, along with FHA Plus program applications and disclosure. You also have to own sufficient funds to pay standard mortgage application and closing fees.

FHA Plus Loan requires that payments for both the first and the second mortgage be due on the same date and paid to the same servicer.

FHA Plus Loan requires you complete a pre-closing homebuyer education and earn a certification and the necessary knowledge as a homebuyer. The course is available both for in-person and online classes. You are also advised to contact a specialized lender who will guide you through the application and buying process.

 

2.     Mortgage Credit Certificate is a tax credit for first-time homebuyers who can receive up to 20 % of the annual mortgage interest paid for their first home purchase. If you become an eligible borrower, you are allowed to benefit of this dollar-for-dollar credit against your federal income tax liability. The other 80 % can still be used for tax deduction.

Mortgage Credit Certificate can be used for the life of your mortgage, as long as you live in the home and this is your primary residence. The first-time homebuyer requirement is waived if you purchase your home in a federal targeted area.

Mortgage Credit Certificate requires you meet the maximum household income limits and your purchased home has to be below the maximum sale price or the loan limits.

Mortgage Credit Certificate requires you live in your home for at least 9 years; otherwise you may be subject to the federal recapture tax.

Mortgage Credit Certificate requires you complete a pre-closing homebuyer education and earn a certification and the necessary knowledge as a homebuyer. The course is available both for in-person and online classes. You are also advised to contact a specialized lender who will guide you through the application and buying process.