VHDA is changing the amount available for the second mortgage of the FHA Plus Program.

First time home buyers in Virginia need to know!!!! 

 

From VHDA

 

VHDA is changing the amount available for the second mortgage of the FHA Plus Program.

 

·         Borrowers with credit scores between 620 and 679 (or those with no credit score with acceptable non-traditional credit) will be eligible for a second mortgage at a maximum of 3.5% of the lesser of sales price or appraised value.

 

·         Borrowers with credit scores of 680 and greater will continue to be eligible for a maximum second mortgage of 5% of the lesser of sales price or appraised value.

 

·         The applicable credit score will be the lower of the middle scores of all borrowers.

 

·         Maximum second mortgage amount will be based on the credit score available at the time of loan commitment. No increase to the loan amount will be allowed for improved credit scores after loan commitment.

 

·         When making a loan reservation beginning May 1, 2010, a credit score for all loan programs will be required to be input in the reservation system. If the score changes it will be updated at the time of loan commitment.

 

These changes are effective with reservations beginning May 1, 2010.

 

For more information on VHDA visit VHDA.com

 

 

 

Thank you,

 

Edward Deanes

 

 

This information is accurate as of the date posted and is subject to change without notice. All of the views and comments are mine and do not represent Wells Fargo.