FREE Money for a Down Payment!

No Money Down Home Loans are Back!

The VHDA just announced that they plan to roll out a program that offers down payment grants for qualified first time buyers on Monday, March 14. That’s basically free money!Virginia Dollar Sign JS Realty

These non-repayable grants are for 3% (Conventional) or 3.5% (FHA) of the purchase price. When combined with a mortgage credit certificate (tax credit) this is a great way to purchase a home with no money down.

This program is designed to help first time home buyers (or buyers that have not owned a home in the past 3 years) realize the American dream of home ownership. Now, there are income and sales price limits, so this is not for everyone. However, this will enable home buyers who need help with the down payment to purchase a home.JS Realty New Home Buyer RulesHere are some of the parameters of this grant that buyers must follow:
-Intend to live in the home
-May not use home for trade or business
-Lot size limited to 2 acres (unless a waiver is obtained, which will allow up to 5 acres)
-Demonstrate creditworthiness
-Demonstrate stable income
-Take and complete VHDA’s Homeownership Education class

You can view the specific income and sales price limits to qualify for this grant here.  The income and sales price limits also vary depending on where in Virginia you live. This creates an opportunity for home ownership where it may not have been possible otherwise.

We want to help you make your dream of home ownership come true!

Take advantage of this amazing program! Contact Scott Koval and Sarah Taylor at the JS Realty Team for a personalized consultation.


Being a homeowner has lots of perks – you get a nice tax deduction, you are building equity in your home, and hey – you can paint the walls whatever color suits your taste!

There’s quite a lot of data to be found about loans, interest rates, and insurance costs. And it’s pretty easy to find out what a home will cost in the area you’d like to purchase in. But there’s not a lot of information on how much money you will need to pay “out of pocket” in order to actually buy a house. Everyone’s circumstances are different and you may have thousands of dollars saved up – or maybe just a few hundred.JS Realty No down payment Blackboard with 3d house

Typically, a borrower (that’s mortgage lingo for “person who applied for a loan”), will have to make a payment at closing which consists of a down payment and closing costs. There are instances where this amount can be zero – or very close to it! Let’s look at some cases where this would be true.

JS Realty House, Veteran, Military.The U.S. Department of Veteran’s Affairs (VA) guarantees VA loans and are available for eligible veterans, service members and surviving spouses (provided they do not remarry). VA loans can provide 100% financing and will even allow the VA funding fee to be added to the loan amount. This takes care of the need for a down payment. Closing costs can be covered by seller credits, lender credits or realtor credits which can result in a closing where no money is needed on the buyer’s part. VA loans don’t have the need to pay mortgage insurance.

JS Realty Mortgage application form with a calculator and house.Another scenario where a buyer can escape the need for a down payment is a loan from the Federal Housing Administration, known as an FHA Plus loan. Most FHA loans require a down payment of 3.5%. With the FHA Plus loan, there is a first mortgage based on 96.5% of the sales price and a second mortgage of 3.5% to 5% of the sales price. Again, if third party credits are available to pay the closing costs, no money is needed at closing. Unlike the VA loans, FHA loan have both upfront mortgage insurance premiums as well as monthly mortgage insurance payments.

JS Realty Farmhouse in a pastoral environmentA third loan option that has no down payment is a USDA loan. USDA loans are designed for lower-income borrowers and there are geographical restrictions regarding the purchased properties. The home purchased must be a primary residence and in a rural area that with a general population limit of 20,000 or less.

JS Realty Refinance Monney Calculator BillsConventional, conforming loans of $417,000 or less can be obtained for as little as a 3% down payment. Keep in mind that with a loan that has a loan-to-value of 97%, the cost of mortgage insurance will be higher on both single premium mortgage insurance as well as with monthly mortgage insurance when compared to loans with a down payment of 5% or more.

With conventional loans, mortgage insurance will be needed with any single mortgage loans with less than a 20% down payment.

Every borrower has unique loan scenarios based on credit scores, cash available for down payments and closing costs, eligibility for various loan types, etc. As a loan officer, I take great pride in fully understanding the specific needs of borrowers to allow me to offer the best possible mortgage loan solution. Please contact me for further information or assistance!

JS Realty Keith Harris
Keith Harris
NMLS # 838973

Keith Harris
Senior Loan Officer
Intercoastal Mortgage Company
Direct: (703) 259-0788
NMLS ID # 838973