Virginia FHA Loan Financing
If you live in Virginia and you're thinking about purchasing your first home, you're not alone! Plenty of buyers are taking advantage of low housing prices and making the transition from renter to homeowner. But the process can be a confusing one, and financing can be one of the most difficult avenues to navigate. Thankfully, your decision can be made a little easier thanks to the Virginia FHA loan program.
FHA Loan Advantages
Targeted at buyers who may not otherwise qualify for a loan or are concerned about their credit scores for whatever reason, Virginia FHA loans can be a great choice for most first time homebuyers. The program has several different loan options and nearly every borrower can find a program that easily works for them, their finances, and their lifestyle. Interest rates are extremely competitive and there are very few points to pay on the loans. Additionally, since Virginia FHA loans are administered by a government agency, you can rest assured that the program is not one of the predatory loan options that are so common in recent years but instead ethical and well managed.
Credit terms for Virginia FHA loans are lenient, and even buyers who have a history of bankruptcy can still qualify for a loan if they've maintained excellent credit since the discharge. Even buyers with no credit experience can receive a loan. The FHA works with your lender of choice to provide the lender with a guaranty in order to make your loan less risky and to provide extra insurance that the loan will in fact be fulfilled.
FHA Loan Limits in Virginia
There are, however, limits to the amount of money a borrower can receive with a Virginia FHA loan. The current baseline maximum for a single family dwelling is $271,050 (this amount includes any closing costs which have been rolled into the loan) but the amount is adjusted for the cost of living in certain areas. For instance, the maximum in Albemarle County is $437,000 while Manassas (a suburb of Washington DC) has a limit of $729,750. The baseline limit is adjusted so that even borrowers in high cost of living areas can afford a starter home in reasonable condition. Check with your lender regarding the current limits for your particular area and situation.