Effective with locks on or after Tuesday, September 7th, VHDA is updating their DPA (Downpayment Assistance) Grant program guidelines in order to make it a sustainable program and will require the following:
- All borrowers must contribute a minimum of 1% of the sales price for each transaction.
- These funds may come from borrower contributions or other acceptable funds in accordance with the program guidelines. Gifts are acceptable.
- The maximum grant amount will be 2.50% for FHA loans and 2.00% for Fannie Mae loans.
- The minimum credit score will be 640 (for all borrowers).All borrowers must have a credit score to be eligible.
- The maximum debt to income ratio will be 41.00%.
- All loans must receive an AUS approval (Reminder: FHA with gift funds may not be run through LPA, only through DU). Manual approvals will not be accepted.
Again, these new guidelines become effective with all new VHDA loans locked beginning September 7, 2016. As always, a fully executed contract is required prior to locking loans and
reserving DPA Grant funds.
If you have any questions, call me! Always available for questions and scenarios!