In West Virginia, being a first-time homebuyer may qualify you for assistance. The West Virginia Housing Development Fund works with a variety of lending partners on programs for first-time homebuyers. They serve to provide affordable housing for residents of West Virginia. The WVHDF not only promotes home loans with positive interest rates, but it can make your dream of homeownership with a no-down-payment mortgage possible.
But, there are even more homeownership options to tap into. Take a look at the federal loan programs offerings for first-time home buyers below. Some have low down payments or easy qualifying options. So check out both the WV Housing Development Fund options and the federal choices to see what works best for your situation.
Federal first-time homebuyer programs
The West Virginia Housing Development Fund offers several loan and down payment assistance programs. But there are also additional resources to consider. Some national programs directed at low- to moderate-income potential homeowners include options for low — and even no — down payment requirements.
These loan options include:
A conventional mortgage is a home loan that is not guaranteed or insured by the federal government. But, conventional mortgages that conform to the requirements set by Fannie Mae and Freddie Mac often allow down payments as low as 3% for first-time buyers or lower-income home buyers.
The Federal Housing Administration mortgage is the program many first-time home buyers utilize. This is especially true if you have a lower credit score. An FHA loan lets you purchase with down payments as low as 3.5% for buyers with a credit score of 580 or higher. Mortgages through the FHA program are insured by the federal government for borrowers with scores as low as 500. But to do so requires a 10% down payment.
The U.S. Department of Veterans Affairs assists service members, veterans and their surviving spouses to buy homes. VA loans are particularly generous. They provide very competitive interest rates. They often require no down payment or mortgage insurance. And, there is no official minimum credit score, although most VA-approved lenders require scores of at least 640.
A USDA home loan is a zero-down-payment mortgage. These loans are for eligible rural and suburban home buyers in specified areas. USDA loans are issued by the U.S. Department of Agriculture through its USDA Rural Development Guaranteed Housing Loan Program. Loan qualifications include income limitations. And these vary by region. Applicants with credit scores of 640 or higher receive a streamlined process, while those with lower scores are required to meet more stringent underwriting standards.
WVHDF first-time homebuyer options and eligibility requirements
These WVHDF programs are for first-time home buyers and West Virginia residents. To qualify as a first-time buyer, you need to not have had an ownership interest in a home within the previous three years. In certain circumstances or under specific conditions there may be an exception to that ownership-interest requirement. This is particularly true in certain counties or if you’re an eligible veteran.
Details vary by program, but here are the highlights:
WVHDF offers 30-year fixed-rate home mortgages.
The WVHDF also offers down payment and closing cost assistance. This can total up to $10,000 and comes in the form of a separate, low-interest loan.
- Each county sets limits that apply to a borrower’s household income.
- The home’s purchase price must also fall within with local guidelines.
- A homebuyer education course is required.
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Let White Diamond Realty help you make your first-time homebuyer dream come true
At White Diamond, we are committed to helping you find the home that fits you best. If you qualify for one of these first-time homebuyer programs, we can assist you in finding that first home. Check out our other articles for new homeowners here. You can see some available homes in the West Virginia counties (Monongalia, Harrison, Taylor, Marion, and Preston) we serve here: