Saving enough money to cover the required down payment and closing costs for the purchase of a home is one of the biggest hurdles that potential first time homebuyers face. Therefore, BRHN offers a closing cost and down payment assistance program in the form of second mortgage deferred loan.
The HOMEownership Down Payment Assistance Program makes purchasing a home more affordable for low-to-moderate income families and individuals by offering assistance in the form of down payment and closing costs to eligible borrowers.
HOME Loans are zero percent interest, non-amortizing second mortgage loans, which means you do not make any monthly payments. You repay the loan if you sell the home, transfer ownership, refinance the first mortgage, or cease to occupy the home. Recipients of the HOME loan will not repay the loan as long as they continue to live in the home.
You may qualify for this loan if your income is at or below 80% of the (AMI) adjusted for household size. The program offers up to 10% of the purchase price of the home, to assist with down payment and closing costs.
Your down payment, closing costs (costs and fees that are part of receiving a home loan) and prepaid costs (set-up of escrow accounts for future payments of taxes and insurance) are three primary costs associated with the actual process of purchasing a home. Recognizing that coming up with the funds to cover these costs is often a major stumbling block for many low- and moderate-income homebuyers. The program offering down payment and closing cost assistance targets individuals and families whose income is at or below 80% of the Area Median Income. For example, a homebuyer meeting the income eligibility may receive 10% of the purchase price of a home to go toward the down payment plus up to $2,500 to pay for the cost of closing; i.e., attorney’s fee, title insurance, taxes, etc.
Mortgages are originated through an approved VHDA-approved lender.