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West Virginia First-Time Home Buyer Programs of 2019

July 3, 2019
Finding the Right Mortgage, Mortgages
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The West Virginia Housing Development Fund works with dozens of lenders to provide affordable housing for West Virginia residents. It not only facilitates home loans with favorable interest rates but can make the dream of a no-down-payment mortgage come true.

And yet, there is even more homeownership help to tap. Check out federal loan programs offering first-time home buyers low down payments and easy qualifying as you look into  WV Housing Development Fund options.

National first-time home buyer programs

A good starting point is to investigate the low- or no-down-payment loans available from these federally backed mortgage programs.

Conventional mortgage

National program

Best for

Low down payment

Limited mortgage insurance premiums

What you need to know

First-time home buyers can get a conventional home loan with as little as 3% down if the mortgage meets requirements set by Fannie Mae and Freddie Mac. And if you put at least 20% down, you won’t have to pay mortgage insurance. Most lenders require a minimum credit score of 620 to qualify for a

 

FHA loans

National program

Best for

Low credit score

Low down payment

What you need to know

This is the go-to program for many first-time home buyers with lower credit scores. The Federal Housing Administration allows down payments as low as 3.5% for those with credit scores of 580 or higher. The FHA will insure loans for borrowers with scores as low as 500 but requires a 10% down payment

 

VA loans

National program

Best for

Military

Low down payment

What you need to know

Guaranteed by the U.S. Department of Veterans Affairs, these mortgages are available to military members, veterans and surviving spouses. If you qualify, you’ll see benefits such as no minimum credit score and no down payment or mortgage insurance, but you'll likely have to pay a VA funding fee.

 

USDA loans

National program

Best for

Low down payment

Rural

What you need to know

A USDA home loan is a zero-down-payment mortgage for eligible rural and suburban home buyers. USDA loans are issued by the U.S. Department of Agriculture through the USDA Rural Development Guaranteed Housing Loan Program. There are income limitations, which vary by region. Applicants with credit

 

WVHDF highlights and eligibility requirements

These WVHDF programs are for first-time home buyers and West Virginia residents. A first-time buyer is defined as not having had an ownership interest in a home during the past three years. An exception to that ownership-interest requirement is available in certain counties or if you’re an eligible veteran.

Additional details vary by program, but here are some basics:

» MORE: Tips for first-time home buyers

Highlights

  • WVHDF offers 30-year fixed-rate home loans.
  • With 100% financing available, you may qualify without a down payment.
  • Offers down payment and closing cost assistance up to $10,000 in the form of a separate, very-low-interest loan.

Eligibility

  • County limits apply to a borrower’s household income.
  • The purchase price of the home must also comply with local guidelines.
  • A home buyer education course is required.

» MORE: Calculate your monthly mortgage payment

WVHDF first-time home buyer programs

Down Payment/Closing Cost Assistance Program

State program

Read more

at WVHDF

Best for

Low down payment

Down payment assistance

Closing cost assistance

What you need to know

Offers $7,500 in a separate, very low fixed-rate 15-year loan to apply to closing costs if your down payment is 10% or less. If your loan-to-value is less than 90% of the purchase price — meaning you can put down more than 10% — you can borrow up to $10,000 in closing cost assistance.

 

USDA 502 Direct Loan Program

State program

Read more

at WVHDF

Best for

Rural

Low-income borrowers

Low down payment

What you need to know

For low- and very-low-income borrowers looking to buy in rural areas of West Virginia, this program allows 100% financing — and monthly payment assistance. Eligibility factors determine the amount of the subsidy you might receive. Income limits apply, and there are specific guidelines for the

 

HOME Leverage Loan Program

State program

Read more

at WVHDF

Best for

Home affordability

Low down payment

What you need to know

If you qualify for a mortgage but the amount you're eligible to borrow is less than the purchase price, this program can bridge that gap. It's a 0% interest second mortgage up to $14,999 that you don't have to repay — the principal is forgiven on a pro rata basis monthly.

 

Summary: 2019 West Virginia first-time home buyer programs

  • The Down Payment and Closing Cost Assistance program offers low-interest-rate loans to help you clear the upfront money hurdle.
  • The USDA 502 Direct Loan Program allows no down payment and provides payment assistance.
  • The HOME Leverage Program helps bridge the gap between what you can qualify to borrow and the purchase price of a home.

These programs are implemented by WVHDF authorized lenders. For full details on any program, visit the WVHDF website.

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