SCDHC HOMEownership Down Payment & Closing Cost Assistance Program

SCDHC HOMEownership Down Payment & Closing Cost Assistance Program is a deferred second loan for homebuyers in Richmond; Petersburg; Emporia, Virginia, administered by Southside Community Development & Housing Corporation (SCDHC). Southside Community Development & Housing Corporation (SCDHC), a HUD-approved housing counseling agency and the largest single-family nonprofit housing developer in the Richmond MSA, administers the Virginia DHCD HOMEownership Down Payment & Closing Cost Assistance Program (federally funded by HUD HOME) as a regional provider for the Crater/Southside region (Brunswick, Charles City, Dinwiddie, Emporia, Greensville, Petersburg, Prince George, Southampton, Sussex) and the Richmond metro (Henrico, Chesterfield, City of Richmond). The DPA is a deferred, no-payment, no-interest second loan that helps income-eligible first-time homebuyers at or below 80% AMI cover down payment and closing costs. Assistance is provided up to 10% of the sales price (up to 15% in DHCD-designated high-cost/economically depressed localities), plus up to $2,500 toward closing costs, to a maximum of $40,000. The loan is secured by a deed of trust for a 5-year (assistance of $1,000-$14,999) or 10-year ($15,000-$40,000) affordability period and is fully forgiven if the buyer keeps the home as their principal residence through the period. SCDHC also offers homebuyer education, one-on-one counseling, and a VIDA matched-savings program. Up to 10% of sales price (15% in high-cost areas) toward down payment. Up to $2,500 toward closing costs. Deferred 0% loan, no monthly payments. Fully forgiven after affordability period. HUD-certified homebuyer education and one-on-one counseling. Funding comes from U.S. HUD HOME Investment Partnerships Program, administered by Virginia DHCD.

SCDHC HOMEownership Down Payment & Closing Cost Assistance Program offers between $1,000 and $40,000 in assistance. Award tiers: Up to 10% of sales price for standard localities; up to 15% for DHCD-designated high-cost/chronically economically depressed localities. Homebuyer contribution: Borrower must contribute 1% of the sales price from personal funds if income is 50%-80% AMI; if income is below 50% AMI, contribution is $500. The 1% may include appraisal, insurance, third-party inspection fees, credit report, and closing costs (receipts required). SCDHC pre-screen asks for at least $2,000 in savings. The program can be combined with VIDA, ARS (Acquire/Renovate/Sell), Virginia Housing DPA, Virginia Housing SPARC, FHLB programs, USDA programs, Freddie Mac/Fannie Mae assistance, lender/employer/housing-authority programs. Amounts are the program's published maximums, not an offer — Southside Community Development & Housing Corporation (SCDHC) determines any individual award.

SCDHC HOMEownership Down Payment & Closing Cost Assistance Program is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Sale or transfer of title (voluntary or involuntary), or failure to occupy as principal residence (rented/vacant), during the affordability period triggers recapture/repayment of the entire outstanding HOME investment from available net proceeds. The assistance is recorded in Second (silent second / deferred loan recorded behind first trust mortgage) position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

SCDHC HOMEownership Down Payment & Closing Cost Assistance Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: First-time homebuyer = never owned a home OR has not held primary ownership in a principal residence within the most recent 3-year period. Mobile homes titled as personal property and investment/inherited property not occupied as principal residence in the last 3 years still qualify the buyer as first-time. On credit, the program states: SCDHC's own screening states a credit score above 640. The underlying DHCD HOME DPA program requires a median FICO of 620 with at least 3 open, current trade lines (alternative credit considered with 3 trades). A homebuyer education course is required, through HUD-certified homebuyer education course through Virginia Housing, NeighborWorks, or a HUD-certified agency; SCDHC provides its own HUD-approved homebuyer education workshops and counseling. Residency requirement: Property must be in SCDHC's DHCD-assigned service area (Crater/Southside counties and Richmond metro localities listed). Loan TERM: deferred second with 5-year affordability period for assistance of $1,000-$14,999 and 10-year affordability period for $15,000-$40,000; no payments and 0% interest; fully forgiven at end of affordability period; not assumable. Borrower must complete HUD-certified homebuyer education and one-on-one counseling, have a 90-day minimum work history, pay off collections totaling $1,000+ and all judgments before closing, and have cash assets below 10% of the sales price. No cash back to buyer at closing.

SCDHC HOMEownership Down Payment & Closing Cost Assistance Program limits household income to 80% of the area median income, which varies by county and household size. Total household income at or below 80% of HUD Area Median Income (AMI) for the locality and household size, per HUD's annually updated HOME income limits. SCDHC's own pre-screen also asks that annual income be at least $40,000. Exact dollar limits vary by jurisdiction and household size; see DHCD/HUD HOME income limit tables (Unconfirmed: SCDHC does not publish a per-household-size dollar chart on its site). The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

SCDHC HOMEownership Down Payment & Closing Cost Assistance Program caps the purchase price as follows: Home value may not exceed 95% of the area median sales price (HUD 203(b) limits), established annually by HUD per locality. Eligible property types include Single-family detached (one unit), Duplex/Triplex/Fourplex (assisted unit individually sold and deeded, owner-occupied, no other units owned as rentals), Townhome, Condominium, Modular home, and Manufactured home (post-June 15, 1976; permanent utility hookups; on owned land or long-term lease). New construction is eligible. Manufactured homes are eligible.

SCDHC HOMEownership Down Payment & Closing Cost Assistance Program serves homebuyers purchasing in Richmond; Petersburg; Emporia, Virginia.

Applications for SCDHC HOMEownership Down Payment & Closing Cost Assistance Program go through Southside Community Development & Housing Corporation (SCDHC), which publishes the current terms and the application steps on its own site. Funds are reserved through First come, first served; funds reserved only after the buyer is pre-approved by a lender and meets DPA eligibility. Workshop registration and online application via SCDHC. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.