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Virginia Housing Plus Second Mortgage

Making the down payment for your first home can be challenging. The Virginia Housing Plus Second Mortgage pairs two mortgages together to cover the cost of your down payment, and can also cover part of the closing costs for eligible borrowers.

Get To Know This Mortgage

  • What Is It?

    The Virginia Housing Plus Second Mortgage pairs an eligible Virginia Housing first mortgage with a Virginia Housing second mortgage that covers the down payment. For certain credit qualified borrowers it will cover all or a portion of the closing costs. This is a 30-year, fixed-rate loan with no prepayment penalty, and if you qualify, you’re also eligible for a Mortgage Credit Certificate (MCC).


  • Eligibility Requirements

    To receive a Plus Second Mortgage, a homebuyer must:

    • Be a first-time homebuyer or repeat buyer purchasing in Areas of Economic Opportunity
    • Have an FHA or Conventional / Conventional No MI loan from Virginia Housing
    • Have a household income within Virginia Housing’s income limits - If a homebuyer does not qualify for the grant funds, this loan’s higher income limit might be the right solution
    • Be within Virginia Housing’s sales price / loan limits
    • Have a minimum of 1% of the sales price documented and available to be used towards closing costs/prepaid items or to be held in reserves (or a combination of the two)

  • How Does It Work?

    The amount of the second mortgage will depend on your credit score and the type of first mortgage you receive, but the maximum will be 5% of your home’s purchase price. If you qualify, you can borrow 1.5% more than the sales price. You can also finance part of your closing costs using this loan if you have a credit score of 680 or higher.