First time home buyer West Virginia programs are among the best in the United States. With all of the economic opportunity and natural beauty that is already in West Virginia, the incentives mentioned below may give you enough reason to move.
What is the state agency in West Virginia for home buying assistance?
The West Virginia Housing Development Fund (WVHDF) is command central for state sponsored programs and assistance when it comes to real estate. The WVHDF works with federal agencies to make first time home buying simpler and cheaper for people who may not have the best financial record or credit score. In order to reap the full benefits of the state program, however, you must understand how the federal programs work alongside it.
What is the Homeownership Program in West Virginia?
The Homeownership Program does not specifically state that it is meant for first time home buyers; however, the criteria for eligibility matches the federal government’s definition of a first time home buyer. As long as an individual has not owned a home within the past three years as a primary residence, that person qualifies as a first time home buyer for federal loan programs. The one difference that West Virginia bploys is that it only implbents this three year requirbent in certain counties. That county list is available here. Fannie Mae also has some options for West Virginia first time home buyers with its HomeReady program.
For the most part, in order to qualify for the West Virginia Homeownership Program, you must qualify for one or more of the federal insurance and subsidy programs from the Federal Housing Administration (FHA), the United States Department of Veterans Affairs (VA) or the United States Department of Agriculture (USDA). Loans may also be insured by a private insurance company and qualify. There are no state programs for upgrading properties or for new construction; however, you may still be able to finance a purchase and an upgrade using the FHA 203k federal program.
Properties that are eligible must be on less than five acres within the jurisdiction of West Virginia, and the property types that are eligible are quite extensive:Â new double-wide mobile/manufactured homes;Â single, detached, existing, stick-built, or modular homes; and townhouse, duplex, or condominium units.
How do the federal programs work with the West Virginia Homeownership Program?
The FHA, the VA, and the USDA programs that subsidize loans will give you most of the financial relief in West Virginia. As long as you have a credit score of at least 640 with a relatively clean financial record for big assets and a consistent source of income, you will be able to qualify. However, VA loans are only available to veterans, their spouses, and certain reservists. USDA loans are only available to eligible properties that are usually in areas that are less populated. You will need to qualify for one of these loans in order to take advantage of the additional features that the state may be able to offer you.
What is the down payment and closing cost assistance program?
Although the state of West Virginia does not offer as many direct incentives as some other states, there is direct down payment and closing cost assistance that is available from the state. Alongside one of the aforbentioned federal loan programs, this assistance can fill in almost all of the holes that you need filled in order to get into a West Virginia home for the first time.
First of all, you must qualify for the Homeownership Program, meaning that you must qualify for one or more of the aforbentioned federal programs along with the income, property type, and property value requirbents of the state. Your loan to value ratio then becomes the most important criteria in determining how much money you can get from this program.
What is the loan to value ratio?
Your loan to value ratio is the amount of money that you have borrowed over the total value of the home. It helps to determine the percentage of the down payment that you are actually paying when you put down cash up front. If your loan to value ratio is greater than 90 percent, then you can get up to $10,000 from the down payment assistance program. If your loan to value ratio is less than 90 percent, then you can receive assistance for up to $15,000. Basically, the West Virginia down payment assistance program rewards you up to $5000 if you bring more than 10 percent of the total value of the home in cash up front. The down payment loan is on a 15 year term with an interest rate of 2.5 percent.
The money that you receive from this program can be applied to the down payment or to the closing costs. You may also be able to transfer up to six percent of the closing costs over to the seller depending on the federal program that you qualify for.
What are housing vouchers?
West Virginia is a participant in the United States Department of Housing and Urban Development (HUD) housing voucher program. This program can help first time home buyers get into HUD eligible properties that are located in West Virginia.
2 Point Highlight
Properties that are eligible must be on less than five acres within the jurisdiction of West Virginia, and the property types that are eligible are quite extensive: new double-wide mobile/manufactured homes; single, detached, existing, stick-built or modular homes; and townhouse, duplex, or condominium units.
Basically, the West Virginia down payment assistance program rewards you up to $5000 if you bring more than 10 percent of the total value of the home in cash up front.
