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VHDA - 100% - even in todays mortgage market - No Mortgage Insurance ~ No Second Mortgage
By robertearl | August 24, 2007
VHDA stands for Virginia Housing Development Authority. Check out this new program that they are offering…
Flex Alt Interest Only - Pilot Program
100% No Mortgage Insurance ~ No Second Mortgage
VHDA’s newest program offers the security of a 30-year fixed rate loan with several affordable financing features that make homeownership possible for more Virginia residents.
VHDA’s Flex Alt Interest Only Pilot program offers the option of paying only the interest portion of the payment during the first 7 years of the loan. Combined with the elimination of the expense of traditional mortgage insurance payments or high interest rate second mortgages, the Flex Alt Interest Only creates significantly lower monthly payments during the first 7 years. Loan payments increase in the 8th year of the loan when the principal payments begin and then stay fixed for the remaining 23 year term. Borrowers have the option to make payments toward the principal at any time with no penalty. This puts the borrower in control of their payments.
The maximum loan for the Flex Alt Interest Only is limited to 100% of the lesser of the sales prices or appraised value. This program is available for home purchase transactions only. As with other VHDA Flex Alt programs, repeat homebuyers as well as first-time homebuyers are eligible and higher income limits apply. There are no sales prices limits but the maximum loan limits is $417,000.
Payment Comparisons
$350,000 sales price ~ 100% loan ~ $350.00 taxes and insurance
Conventional 30 year fixed rate w/ M.I. $2,845.00 P.I.
VHDA Flex Alt Interest Only w/o/ M. I. $2,427.00 min. payment
Working with The Earl of Real Estate Team and our trusted Mortgage Partners can save you $418.00 per month?
Special Thanks to Mike Roche at Countrywide Home Loans for the information.
Topics: Northern Virginia Real Estate, Robert Earl, VHDA |