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Virginia Housing Plus Second Mortgage Information for Lenders

This loan pairs two mortgages together to cover the cost of a down payment and can also cover part of the closing costs for eligible borrowers.

Learn About This Mortgage

  • What is It?

    The Plus Second Mortgage pairs one of our eligible first mortgages with a second mortgage that covers the down payment. For certain credit-qualified borrowers, some closing costs may also be covered. This is a 30-year, fixed-rate loan with no prepayment penalty.

  • Eligibility Requirements

    To receive a Plus Second Mortgage, a homebuyer must:

    • Be a first-time or repeat buyer
    • Have a non-bond or bond FHA/Conventional or non-bond Conventional No MI loan from Virginia Housing
    • Have a household income within Virginia Housing’s income limits - If a first-time 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 the homebuyer’s credit score and the type of first mortgage they receive. Buyers with credit scores below 680 can borrow the full amount of the required down payment. Buyers with credit scores of 680 and above can elect to borrow an additional 1.5% above the purchase price to cover closing costs.

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