Low Down Home Loan

What is Low Down Home Loan?

Low Down Home Loan is a repayable second loan for homebuyers in Statewide, West Virginia.

• WVHDF statewide HFA Low Down Home Loan with $5,000 forgivable 0% second (5-year forgiveness). Pairs with Movin' Up bond-funded 30-year fixed first mortgage. Open to first-time AND repeat WV homebuyers. Statewide.
• WVHDF Low Down Home Loan provides a $5,000 forgivable second mortgage paired with WVHDF's Movin' Up or HOME-MAP 30-year fixed first mortgage (FHA, VA, USDA-RD, or HFA conventional). The $5,000 second is a 0% deferred non-amortizing soft second forgiven over 5 years of continuous owner-occupancy (20% per year). No monthly payment. If the borrower sells, refinances, or vacates the home before the 5-year forgiveness period ends, the unforgiven balance is due in full. Statewide HFA bond program. 640 minimum FICO. 45% max DTI. Income limits up to $57,040 (1-2 person low-cost county) - $102,100 (3+ person targeted/higher-cost). Purchase price up to $300,000 statewide non-targeted / $350,000 in federally targeted census tracts. WVHDF homebuyer education required.
• Funding comes from State and Bond.

How much assistance does it provide?

Low Down Home Loan offers up to $12,000 in assistance.

• Buyer contribution: No mandatory borrower minimum contribution from WVHDF; first-mortgage agency overlays may impose minimum (e.g., FHA 3.5%, conventional 3% can be fully covered by combined first + Low Down second).
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Low Down Home Loan is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by 0% deferred forgivable second mortgage. Forgiven 20% per year over 5 years of continuous owner-occupancy. Unforgiven balance due in full on sale, refinance, transfer of title, payoff of the first mortgage, or non-owner-occupancy during the 5-year forgiveness period. No monthly payment.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Low Down Home Loan is open to buyers who will live in the home as their primary residence.

What are the income limits?

Low Down Home Loan limits household income to $102,100.

• 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.

What kind of home can it be used for?

Low Down Home Loan caps the purchase price at $350,000.

• Eligible property types include Single-family detached, 2-unit owner-occupied (1-unit only for some products), condominium (project-approved), townhouse, PUD. Per first-mortgage overlays.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Low Down Home Loan names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Low Down Home Loan serves buyers purchasing in Statewide, West Virginia.

• The program targets specific areas: Federally designated targeted census tracts (per IRS Section 143) where higher income limits ($102,100) and acquisition-cost limits ($350,000) apply.

How do you apply?

Applications for Low Down Home Loan 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 WVHDF-approved homebuyer education provider network (HUD-approved housing counseling agencies, eHome America, Framework). Required prior to closing..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Reserved through WVHDF lender portal at time of rate lock by approved participating lender., 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.