Government

FHA: The Federal Housing Administration (FHA), which is part of the U.S. Dept. of Housing and Urban Development (HUD), administers various mortgage loan programs. The FHA can help people to obtain a loan with little or no down payment. The FHA does not supply the loan; it simply insures the loan to limit the risk to the lender.

The FHA loan guidelines are more relaxed than conventional loan guidelines; this includes less strict regulations about job requirements, use of alternative credit, and debt to income ratios.

VA: VA loans are guaranteed by the U.S. Dept. of Veterans Affairs. The guaranty allows veterans and service persons to obtain home loans with favorable terms, usually without a down payment. The U.S. Department of Veterans Affairs does not make loans, it guarantees loans made by lenders. VA determines your eligibility and, if you are qualified, VA will issue you a certificate of eligibility to be used in applying for a VA loan.

VHDA: VHDA is a self-supporting, not-for-profit organization created by the Commonwealth of Virginia in 1972, to help Virginians attain quality, affordable housing. VHDA provides mortgages, primarily for first-time homebuyers and developers of quality rental housing. The use no state taxpayer dollars, but raise money in the capital markets to fund their loans. They also teach free homeownership classes, and help people with disabilities and the elderly make their homes more livable. VHDA works with lenders, developers, local governments, community service organizations and others to help put quality housing within the reach of every Virginian.

Since their founding, VHDA has committed financing for more than 174,500 single family homes and 135,000 multifamily units.

USDA: Section 502(aka: USDA) loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Applicants for direct loans from HCFP must have very low or low incomes. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI.