The HOMEownership Down Payment and Closing Cost Assistance (DPA) program provides flexible gap financing for first-time homebuyers at or below 80 percent of the area median income (AMI) to purchase homes that are safe, decent and accessible. The down payment assistance is provided in the form of a grant with a mandatory “affordability period” for the applicant to continue to occupy the house as their primary residence.  An income eligible homebuyer may receive up to 10 percent or 15 percent (within approved areas) of the sales price, plus up to $2,500 to pay for the cost of closing (e.g. attorney’s fee, title insurance, taxes as needs demand). Individuals seeking DPA assistance from VHCDC must comply with the following...

1. Enrollment in the VHCDC Home Ownership Assistance Program:
Individuals must be enrolled in the VHCDC Home Ownership Assistance Program and must be in full compliance with its terms and conditions.  All enrollees will satisfy the following:

• First-Time Home Buyers College (15 hours or more)
• Two (2) Pre-Purchase Housing Counseling Sessions
• Three (3) Consecutive Months of Personal Financial Statements (verified by bank/brokerage account statements, pay-check stubs, and credit reports)
• Communicate Progress (Work Plan Tasks, Savings, Debt Resolution, etc.) Monthly
• The household income of participants must not exceed the 2024 Adjusted Household Income Limits for their Metropolitan Statistical Area (MSA) - See VIDA chart.  This will be verified by prior two (2) years federal income tax returns.
• Debt-To-Income Ration Less Than 45%
• No Open Charge-Offs, Collections or Judgements

2. Recommendation by VHCDC Housing Counselor:
Participants must be recommended for participation by a VHCDC Housing Counselor, indicating their readiness and suitability for the program. Applicants shall submit the following to their Counselor:

• VHCDC Release of Information Form
• Letter of Pre-Approval from a Mortgage Lender, including Good Faith Estimate
• Documentation of Gifts from Individual(s), along with Letter of Gift
• Documentation of Down-Payment Assistance Grants
• Documentation of Closing Cost Assistance
• Purchase Agreement (Ratified)
• Appraisal Report
• Two (2) Years Earned Income
• Paycheck Stubs (3 months)
• W2 (2 most recent years)
• Federal Income Tax Returns (2 most recent years)
• Self-Employment Documentation to include YTD Profit & Loss, Schedule K’s, Federal Income Tax Returns (3 most recent years)
• SSI and SSDI (if applicable)
• Child Support and Spousal Support/Alimony Documentation (if applicable)
• Retirement Income (if applicable)
• Bank and Brokerage Account Statements (3 months) for all Occupants

NOTE: HOMEownership Down Payment and Closing Cost Assistance (DPA) is provided in the form of a second mortgage loan (forgivable based upon the amount awarded). All applications are processed on a first-come, first-servved basis and subject to funding availability. Please allow 21 to 30 days for processing. Additional terms and conditions apply.

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