HUD Maximum Annual Income Requirements| Family Size | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Income | $36,450 | $41,700 | $46,900 | $52,100 | $56,250 | $60,450 | $64,600 | $68,750 |
Down Payment & Closing Cost Assistance:
Currently there is assistance available for residents of Virginia Beach, (City of Virginia Beach Municipal & School employees are exempt from the residency requirement) who are first time home buyers (defined as not owning a home within the last 3 years) who earned 80% or less of the area median family income (see chart above) and who have attended a VHDA or Homeworks of Virginia certified Homeownership Education Seminar and pre-purchase financial counseling. Buyers receive down payment and closing costs assistance of up to $25,000 per household. The funds are made available through the VBCDC, or the State of Virginia. Let me be specific here in that this is not a grant. It is basically an interest free loan secured by a Deed of Trust on the property. It must be paid back!
It will be recorded as a second lien on the property (mortgage loan = 1st lien; down payment & closing cost assistance = 2nd lien). The caveat here is that the loan is interest free, and does not have to be paid back until you sell the home, vacate the home or upon the death of the owner.
I would advise any homebuyer taking advantage of this assistance to repay a portion of the 2nd lien every month just like you will need to do for your primary mortgage (1st lien). This will pay down both liens over time as you live there. If you do not do this, before you sell the home you will need to ensure you have enough equity in the home to pay off the remainder of the 1st lien and the entire 2nd lien created by this interest free, down payment & closing cost assistance loan.
Program Qualifications:
· Must be a first time home buyer (qualified as not owning a home in the last 3 years).
· Must have income that does not exceed HUD guidelines. (above chart)
· Must have enough income to afford the mortgage payment.
· Must have a good credit rating.
· Must have low fixed monthly debts.
· Must have the required down payment.
· Must have satisfactory work and rental history.
· Attend a homeownership class conducted by VBCDC.
For more information or to see if you qualify for any of these programs contact VBCDC:
Virginia Beach Community Development Corporation
2700 International Parkway, Suite 300
Virginia Beach, VA 23452.
Also Available:
The Virginia Beach Home Buyer’s Club is available through the city’s Department of Housing and Neighborhood Preservation. This is a community-based club of individuals and families with a common goal of homeownership. The club seeks to introduce the process of home buying and to prepare home buyers to easily maneuver through the process. Members of the club are motivated by their desire to own a home; committed to changing their habits to facilitate meeting their goals; are disciplined and responsible for their own success.
For more information or to find out the schedule of events/meetings, call the Department of Housing and Neighborhood Preservation at 757-385-5750 or email the office at housenp@vbgov.com . If you are a first time home buyer and would like professional assistance from a Real Estate Professional, please contact Ed Graybill at 757-201-0718 or contact me via email. 
