First Time Homebuyers - Downpayment and Closing Cost Assistance

What is First Time Homebuyers - Downpayment and Closing Cost Assistance?

First Time Homebuyers - Downpayment and Closing Cost Assistance is a deferred second loan for homebuyers in Henrico County, Virginia.

• Henrico County's First Time Homebuyers Downpayment and Closing Cost Assistance Program provides up to $15,000 as a 0% interest deferred-payment second mortgage for first-time homebuyers purchasing primary residences in Henrico County. Funds are sourced from HUD HOME and CDBG pass-through dollars. Administered by Henrico County Department of Community Revitalization.
• Up to $15,000 in down-payment and closing-cost assistance for first-time homebuyers purchasing in Henrico County. Provided as a 0% interest deferred-payment second mortgage. No monthly payments.
• repaid upon sale, refinance with cash-out, transfer, or loss of primary-residence status.
• Funding comes from HOME, CDBG, Federal, and Local Government.

Do you have to pay it back?

First Time Homebuyers - Downpayment and Closing Cost Assistance is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Deferred 0% second-mortgage repayable in full upon sale, refinance with cash-out, transfer, or loss of primary-residence status.
• The assistance is recorded in 2 position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

First Time Homebuyers - Downpayment and Closing Cost Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

First Time Homebuyers - Downpayment and Closing Cost Assistance limits household income to 80% of the area median income, which varies by county and household size.

• Household income between $61,800 (1-person minimum threshold) and $116,500 (8-person maximum) at 80% AMI for Richmond MSA. Updated annually.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

First Time Homebuyers - Downpayment and Closing Cost Assistance caps the purchase price as follows: Tracks HUD HOME maximum sales price for Henrico County.

• Eligible property types include Single-family detached, Townhouse, and Condominium.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

First Time Homebuyers - Downpayment and Closing Cost Assistance serves buyers purchasing in Henrico County, Virginia.

How do you apply?

Applications for First Time Homebuyers - Downpayment and Closing Cost Assistance go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved housing counseling agencies serving Henrico County; HOME of Virginia and project:HOMES homebuyer-education classes accepted..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application through Henrico County Department of Community Revitalization; first-come, first-served subject to annual HUD HOME / CDBG funding allocation., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.