The following comes from the Virginia Housing Department Authority. This is a great program for first-time homebuyers who meet the income and credit score minimums. Take a read and call or email us if you have any questions or need more information!
________________________________________________________________________________________________________________________
VHDA Loan Program Enhances $8,000 Tax Credit for First Time Homebuyers!
Recently, several housing finance agencies in other states created special short-termsecond loans by “monetizing” the new $8,000 first-time homebuyer federal tax credit to assist
homebuyers needing down payment and closing cost assistance.
The Virginia Housing Development Authority looked at the idea of “monetizing” the new
homeownership tax credit, but decided that a program it already has in place – the FHA PLUS
program – provides better value for borrowers without the hassles.
FHA PLUS is a program designed to assist qualified borrowers who need down paymentand closing cost assistance. A second mortgage (the PLUS) is added to a FHA first mortgageloan. Because VHDA is quasi-governmental, it was grandfathered under the recent FHA
regulation changes and allowed to continue offering down payment and closing cost assistance.
The program is one of the few available that allows borrowers to exceed a 100% LTV.
The program offers several benefits to borrowers. First, it’s flexible because FHA PLUS
is based on five percent of the sales price. Using VHDA’s average sales price of $160,000, a
homebuyer could borrow up to $8,000 for down payment and closing costs, the same amount
available through the new tax credit. But while the tax credit is limited to $8,000, VHDA
customers could borrow more than that amount for higher sales prices. For example, someone
purchasing a home in a higher cost area for $250,000 could borrow up to $12,500 using FHA
PLUS.The $8,000 federal tax credit can then be used to fund home improvements, furniture, etc.
Homebuyers also have the option of using their $8,000 tax credit to pay off or pay down their
FHA PLUS second mortgage next year, with no prepayment penalty. By using this newgovernment benefit to reduce their debt, borrowers will have the opportunity to put themselves in
a stronger financial position.
FHA PLUS also offers the same term for both loans – 30 years, which allows for smallermonthly payments, and the interest can be deducted. By contrast, the new down payment
assistance programs in other states have terms as low as 10 years, thereby doubling the monthly
payments for the second loan.
It is important to note that VHDA, as with all state housing finance agencies, has
maximum income limits on its loan programs. These income limits vary from those required by
the new tax credit – sometimes substantially. Therefore, some borrowers may be eligible for the
new tax credit, but ineligible for VHDA’s FHA PLUS program. VHDA’s income limits can befound at:
http://www.vhda.com/vhda_com/Template_app.asp?VHDA_COM_PAGE_NAME=Limits
For more information about VHDA’s FHA Plus program, visit vhda.com or call 1-877-
VHDA-123.
FHA PLUS Facts
• No down payment required.
• Flexible credit qualifying.
• Includes second mortgage to fund down payment and closing costs.
• Fixed rate for 30 years on both mortgages.
• Loans serviced by VHDA.
• FHA’s standard appraisal guidelines accepted.
• Completion of VHDA’s Homeownership Program is required.
About VHDA
As the state’s housing finance agency, the Virginia Housing Development Authority
(VHDA) provides a variety of innovative low-interest loans for Virginians who want to purchase
homes or to build, renovate or refinance rental housing. These loans are designed to meet the
varied needs of today’s housing markets, from high-cost, high-growth areas to older cities
grappling with revitalization issues and slow growth communities. Visit VHDA at
www.vhda.com.
White Shop, Culpeper - Announcing a price reduction on 19413 OLD MILL RD, a 1,920 sq. ft., 1 bath, 3 bdrm single story. Now 
MLS® $119,900 USD - BANK SAYS THIS MUST GO!.
Property information
Fox Mountain Lane, Culpeper - Announcing a price reduction on 18387 Fox Mountain Lane, a 2,350 sq. ft., 1 bath, 3 bdrm single story "Ranch". Now 
MLS® $159,000 USD - Reduced!.
Property information
Southridge Village, Culpeper - Announcing a price reduction on 764 RIPPLEBROOK DR, a 1,645 sq. ft., 2 bath, 3 bdrm single story. Now MLS® $175,000 USD - Big price drop!.
Property information
Culpeper County, Virginia - Announcing a price reduction on Merrimac Rd North, a lot / land "Rolling pastures". Now MLS® $825,000 USD - Mountain views!.
Property information
Southridge Village, Culpeper - Announcing a price reduction on 764 RIPPLEBROOK DR, a 1,645 sq. ft., 2 bath, 3 bdrm single story. Now MLS® $190,000 USD - Big price drop!. This is a great home for anyone looking for low maintenance living in a nice part of town. Close to shopping, schools, hospital, and route 29...it's good for commuters too!
Call us today for details or to schedule a showing.
Property information
A short sale can be an excellent solution for homeowners who must sell and owe more on their homes than they are worth. Unfortunately, a number of myths about short sales have developed, and it is important to understand the reality of this process should you find it meets your current needs.
Myth #1 – The Bank Would Rather Foreclose than Bother with a Short Sale This is one of the most common misconceptions. The reality is that banks do not want to foreclose on your property because the foreclosure process is incredibly costly. Banks, investors, and even the federal government have all publicly stated that if a person is qualified for a short sale, the deal needs to be considered. Overwhelmingly, banks receive more on their investment through a short sale than a foreclosure. The qualifications for a short sale include: 1.Financial Hardship – There is a situation causing you to have trouble affording your mortgage. 2.Monthly Income Shortfall – “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage. 3.Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
Myth #2 – You Must Be Behind on Your Mortgage to Negotiate a Short Sale While this may have previously been the case, today lenders are looking for verifiable hardship, monthly cash flow shortfall, or pending shortfall and insolvency. If you meet these three requirements and believe that you soon may be unable to afford your mortgage, act immediately. Any delay could limit your options. Do not wait until the countdown clock to foreclosure has started and you have even less time left.
Myth #3 – There is Not Enough Time to Negotiate a Short Sale Before My Foreclosure This is a myth that probably hurts homeowners the most. Many do not realize that foreclosure is a process, and that there is time to make decisions that may result in better outcomes. The foreclosing party—in most cases a lender—can stall a foreclosure up to the final day of the process. Today, many lenders will stall a foreclosure with as little as a phone call from you explaining that you are trying to sell, and almost all lenders will stall a foreclosure with a legitimate contract. For real estate professionals who understand foreclosures and short sales, there is time available until the foreclosure process is complete.
#4 – Listing My Home as a Short Sale is an Embarrassment It is understandable to have reservations about letting the world know that you owe more on your home than it is worth. However, according to recent estimates, one out of five homeowners in the U.S. is in the same situation. You are to be congratulated for admitting you need help, taking action, and finding a professional who can work with you toward a solution. With recent estimates showing 40-60% of U.S. sales will be short sales or foreclosures, you are not alone. Myth #5 – Short Sales are Impossible and Never Get Approved This is a complete falsehood. Are short sales more difficult to execute? Yes. Do you, as a homeowner, need to learn about a new process? Yes. Are they impossible? Absolutely not. For example, agents with the Certified Distressed Property Expert® (CDPE) Designation receive thousands of short sale approvals on a monthly basis. These professionals have undergone extensive training in methods to help homeowners in distress and process short sales. While there are no guarantees in any transaction, more and more short sales are being approved regularly. This is far from an impossible process.
Myth #6 – Banks are Waiting on a Bailout and Not Accepting Short Sales You may have heard this, but the reality is that banks (and the U.S. government) are trying to do anything they can, within reason, to avoid foreclosing on properties. It is preposterous to believe they would deny a short sale in hopes that some future legislation would pass and pay them for losses. Today, more banks are aggressively pursuing short sales and working with agents who understand how to process them. Freddie Mac recently hosted a national training Webinar for real estate agents where they expressly stated the organizational goal of “eliminating distressed assets through modification or short sale.”
Myth #7 – Buyers are Not Interested in Short Sale Properties This is a myth that potential sellers hear all the time. Thankfully, this is just not true. In fact, many agents are getting calls from buyers who say they only want to look at foreclosure and short sales. For buyers, short sales and foreclosures have become synonymous with “good deals.” More specifically, international buyers are targeting these properties. Listing with an experienced agent who is educated in the short sale process will provide you with a great chance of quickly seeing a contract on your property. In conclusion, Agents with the CDPE Designation have been trained in all aspects of the short sale process, and know how to deal with the parties involved in foreclosures. Finding a CDPE can explain what options you have, and get you on the path to recovery.
The Butters Team are Full-Time RE/MAX Professionals and CDPEs. We proudly serve the Culpeper area including the counties of Rappahannock, Orange, and Madison.
Orange County, Virginia - Announcing a price reduction on Grasty Lane, a lot / land "Gorgeous RIverfront!". Now MLS® $999,950 USD - MAJOR PRICE REDUCTION.
Property information
• 1,456 sq. ft., 2 bath, 3 bdrm manufactured home - MLS® $110,000 USD - Great price!
Reva, Culpeper - Come to the country! Great price for move-in ready home on 2 acres in beautiful Reva! Nice 3 bedroom/2 bath home priced well under assessement is ready for quick sale. Open floor plan has spacious living room with wood burning FP. Elevated homesite sits back from state road ensures your peace & quiet. Surrounded by family farms...lots of room for gardening or mini-farm.
Property information
Country living, Culpeper - Announcing a price reduction on 16215 Raccoon Ford Rd, a 968 sq. ft., 1 bath, 2 bdrm single story. Now MLS® $124,900 USD - REDUCED!.
Property information
Rixeyville, Culpeper County - Announcing a price reduction on Spring Hollow Lane, a wonderful 14.85 acre parcel in serene Rixeyville. Now MLS® $185,900 .
Property in0ormation
Reva, Culpeper - Announcing a price reduction on 14177 HILL HAVEN LANE, a 1,056 sq. ft., 2 bath, 3 bdrm single story. Now MLS® $157,439 USD - Reduced!.
Property information
Madison County, Virginia - Announcing a price reduction on Lillards Ford Rd, a lot / land "Nearly 15 acres". Now MLS® $199,000 USD - REDUCED!.
Property information
Reva Park, Reva - The single story at 7153 OAK DR, REVA, VA has been sold.
Property information
Waverly, Warrenton - Announcing a price reduction on 7269 Waverly Dr, a 5,870 sq. ft., 3 bath, 4 bdrm single story. Now MLS® $475,000 USD - .
Property information