Virginia Housing will be introducing a name change and enhancements to our conventional programs in September 2020. We are issuing this advance notice to provide our lenders adequate time to prepare for the changes. This notice is only being sent to Virginia Housing Secondary and Operations Contacts - please share with others in your organization as appropriate.
Virginia Housing Conventional Program
To offer more options to our business partners, the Fannie Mae HFA Preferred with Reduced MI program will be renamed the Virginia Housing Conventional program. Fannie Mae’s Desktop Underwriter (DU) will continue to be an acceptable AUS and Freddie Mac’s Loan Product Advisor (LPA) will now also be an option as well. A few program highlights are:
- Up to 97% LTV for new or repeat buyers (first-time homebuyer required if originated with an MCC, Plus Second Mortgage, or DPA Grant).
- Purchase and limited cash out refinance options available.
- Fannie Mae’s DU and Freddie Mac’s LPA with reduced mortgage insurance options(Charter MI). Approve/Accept Eligible required.
- Minimum 640 credit score.
- Flexible down payment sources allowed, including gifts, our DPA Grant and Plus Second Mortgage.
- LLPAs apply when the borrower’s qualifying income exceeds Fannie Mae / Freddie Mac 80% AMI limits.
- Virginia Housing’s income limits and the conforming loan limit apply (Sales price limit only applies if originating with an MCC, Plus Second Mortgage, or DPA Grant).
Virginia Housing Conventional No MI Program
- Up to 97% LTV for new or repeat buyers, no mortgage insurance required (first-time homebuyer required if originated with an MCC, Plus Second Mortgage, or DPA Grant).
- Purchase and limited cash out refinance options available. Fannie Mae’s DU Approve Eligible findings required (see below for one exception).
- Minimum 660 credit score.
- Flexible down payment sources allowed, including gifts, our DPA Grant and Plus Second Mortgage.
- Fannie Mae’s 80% AMI limit does not apply. DU will render a decision of Approve Ineligible if the qualifying income exceeds 80% AMI, which is acceptable as long as the only reason for ineligibility is due to income exceeding 80% AMI.
- Virginia Housing’s income limits and the conforming loan limit apply (Sales price limit only applies if originating with an MCC, Plus Second Mortgage, or DPA Grant).
- Conventional No MI no longer requires special lender delegation! If you are delegated on other programs like Government and Conventional, you are now delegated on the Conventional No MI too!
Click for Draft Virginia Housing Conventional No MI Program Guidelines and Procedures
Click for Draft Virginia Housing Conventional Program Guidelines and Procedures
Documentation Changes
The following Virginia Housing documents have been revised to reflect the Conventional name change. All will be available on our website or in Mortgage Cadence in September.
- Award Letter (for DPA Grant and Plus Second Mortgage, Mortgage Cadence generates for both Conventional and FHA first mortgage financing)
- Obligation Letter (for DPA Grant and Plus Second Mortgage, Mortgage Cadence generates for only FHA first mortgage financing)
- Underwriting Submission Checklist (for non-delegated loan submissions)
- Loan Stacking Form (for submission of all closed loan packages)
- Program Disclosure and Borrower Affidavit (Exhibit E)
- The Exhibit E is attached since some of you include it in your system generated origination package. We hope providing this to you before the program release is beneficial. It is acceptable to begin using this updated Exhibit E immediately (replacing the Exhibit E2) and we will communicate when this must be used soon.
Click for Programs Disclosure and Borrower Affidavit EX-E
Estimated Program Release
We estimate the new Virginia Housing Conventional and Conventional No MI programs will be available on or about September 15, 2020. A separate notice with final details will be issued to all Virginia Housing lender contacts prior to the release date.