Yesterday, I attended a forum on grant programs that are available in the area.  It was a very interesting forum, because it made me aware of some of the grant programs that are available for first time homebuyers.  Although I have worked with a number of homebuyers who have utilized the grant funds over the years to get into their first home and I have advised many of my homesellers whose homes could potentially qualify for a buyer using grant funds, I was still amazed at how many options exist out there for the first time homebuyer.  So below, I am going to summarize some of the things that I learned there.  This post will not go into detail on the specifics of the program; however, if you do wish additional information on the programs, give me a call and I would be happy to refer you to a lender who can explain your options to you and see if there is a program that will work for you and your situation!

• Housing Opportunities Made Equal (HOME):  They offer down payment & closing costs programs for homes in City of Richmond, Chesterfield County, Henrico County and some statewide programs.  There may be a maximum income limit and there may be some additional guidelines the buyer must meet.  Additionally, HOME may also make below-market mortgage loans to some families and they also offer pre-purchase counseling & homebuyer education programs.  You may wish to visit their website at www.phoneHOME.org for more information.

• Southside Community Development Housing Corporation (SCDHC):  They offer down payment & closing cost assistance forgivable loan programs for homes in City of Richmond, Chesterfield County and Henrico County.  Their programs have an income limitation, must be for a first time homebuyer who will be occupying the home as their principal residence, and the buyer must contribute at least 1% of the sales price to the transaction.  The lenders that must be used must be a VHDA lender.  Additionally, Southside Community is also a developer and is currently developing a neighborhood in Chesterfield County/southside City of Richmond, which has a significant amount of grant funds available for the buyers.  You may wish to visit their website at www.scdhc.com for more information on what they do.
  
•  Virginia Housing Development Authority (VHDA):  These are loans that are available for first time homebuyers in the state of Virginia.  The loans are fixed 30 year loans and are serviced by VHDA.  They offer a number of different programs with below market rates.  Additionally, VHDA offers a SPARC grant that can be used to help bring the VHDA rate even lower.  Two programs that are good for a homebuyer who has little money are the VHDA FHA Plus loan (where the Plus part of the loan is a 2^nd mortgage up to 5% of the sales price) and the VHDA Homebuyer Tax Credit Plus loan (where the Plus part of the loan is the homebuyer tax credit).  The VHDA loans will have income and sales price limitations and will require the buyer to complete a homebuyer education program.  VHDA offers conventional, FHA, VA and Rural Housing loans.  You may wish to visit their website at www.vhda.com for more information on what VHDA can offer.

• Federal Home Loan Bank of Atlanta Grants:  In April 2010, a few banks who are members of the Federal Home Loan Bank of Atlanta network will be getting funds in order to offer grant programs out to buyers who meet the qualifications.  This grant can be up to $10,000 but will be disbursed on a first come first serve basis.  The buyer will need to make a small contribution of their own funds and this grant program can be combined with other grant funds.  There is a homeownership education class required.  There is a maximum income limit to qualify for this program.  If interested, please let me know and I would refer you to a lender I have used for many years who will be able to assist you with this grant program.

So here you have a summary of what may be available for you, should you be able to qualify.  As you can see, there are lots of options for the first time homebuyers, so give me a call and I will refer you to a lender who can let you know if you qualify for the grant programs, VHDA financing and what will need to be done in order to get these funds if you do qualify.  Not every lender can do the grants, so it is best to check the various websites, then call and talk to a lender to see just how you can use the resources that are available to you to get into your first home!  Let me know if you do have any questions!  It is still a great time to buy a home!  And remember, if you do decide that you want to go from renting to homeownership, and you still want to try to get your $8,000 tax credit, remember – you need to be on a contract by April 30, 2010 (only a little more than 2 months away) and you need to close on your new home no later than June 30, 2010!  So don’t delay!