VHDA has changed the calculation of “Household Income” to determine eligibility for VHDA mortgage loans and Mortgage Credit Certificates.
From the VHDA:
“Maximum Household Income will be based upon the income of all borrowers and all non-borrowers taking title to the property.
The income of other household members who will not be on the loan or will not take title to the property will no longer be included in Household Income.
All borrowers and all non-borrowers taking title must meet all Mortgage Revenue Bond eligibility requirements including first time homebuyer, inclusion of income and execution of affidavits.”
What does the VHDA change mean for you?
Now more people can potentially qualify for a VHDA loan.
Why? For example, if your client has a teenager who makes money at a summer job, we no longer need to count the money from the summer job as part of the household income.
That means the total household income will now be lower, which could make it easier for the first-time homebuyers in Virginia Beach, Norfolk and Chesapeake, to obtain a VHDA loan (which has income limitations).
Make sense? If you have any further questions, email me!