Loudoun Housing Funding Specifically

LOUDOUN COUNTY FINANCING PROGRAMS

For

FIRST-TIME HOMEBUYERS

Loudoun County offers first trust and down payment/closing costs financing programs to assist low to moderate income first-time homebuyers. The first trust loan programs are available through the Virginia Housing Development Authority (VHDA) and are known as SPARC loans, which stands for Sponsoring Partnerships and Revitalizing Communities. Loans are available only through VHDA-approved lenders and offer interest rate discounts from a VHDA 30-year fixed loan product.

The County offers a Down-payment/Closing Cost program (DPCC) which is currently undergoing revision. The program as it operates now is detailed below with updates to be made as soon as all changes have been approved by the Board of Supervisors.

General Requirements:

The general requirements apply to all programs with each individual program having its own specific parameters which are detailed below. No exceptions can be made.

· First-Time Homebuyer: Individuals, families or households must be first-time homebuyers or not had ownership interest in a home or other residential property within the last three (3) years anywhere within the United States, foreign land or country. Ownership interest includes but may not be limited to: ownership or purchase of a home or land; co-signatory on a mortgage loan; inherit home or land etc., regardless if they did or did not live on the premises.

· Income: Gross annual income must fall within the parameters of the program(s) being utilized. Income ranges are based on the Area Median Income (AMI) as determined annually by HUD and adjusted for family size.

· Assets: Borrower’s net worth must not exceed 50% of the selected property’s sales price.

· Citizenship: All individuals, families or households must be U.S. Citizens; U.S. non-citizen nationals (permanent resident alien); or qualified alien legally admitted to the United States and possessing a valid work permit and a social security card.

· Homebuyers Education: All borrowers must complete the VHDA Homeownership Education Program and receive a Certificate of Completion. Classes are available in Loudoun County, throughout the state of Virginia or may be taken online by contacting VHDA at www.vhda.com .

· Property: Homes purchased must be located within Loudoun County including the seven incorporated town limits. Homes may be single-family detached; single-family attached; townhouse; or condominium. The financing programs may not be used to finance investment or recreational properties; apartment or other multi-family complexes or for use in a trade or business.

· Business Use Restriction: The financed dwelling may not be used in any manner which would permit any portion of the cost of the dwelling to be deducted as a trade or business expense or if more than 15% of the total living area is to be used primarily in a trade or business.

SPARC for ADU’s:

This allocation of funds is to be used for the Affordable Dwelling Unit program only. Applicants must have attended an Intake session and received a “Certificate of Eligibility”. The homebuyer(s) certified for the program may use the funds for assistance with either new units or re-sale units. To be eligible for the ADU program, incomes must fall between 30% and 70% AMI, adjusted by family size, as determined annually by HUD (see income chart below). Households with incomes greater than 30% and lower than 60% AMI may qualify for 1% interest rate discount. Households with incomes greater than 30% and lower than 70 % AMI may qualify for ½% interest rate discount.

Funds are available first come-first served at the time of reservation. Funding is available from July 1, 2008 to June 30, 2009 or until all funds have been allocated. A signed, ratified sales contract is required prior to reservation in addition to documentation to be supplied by the lender. No advance reservations are accepted nor at any time will funds be held in anticipation of a contract being signed.

Only VHDA-approved lenders may offer this program and reserve funds. If you would like to use this program and are unsure if your lender is qualified to offer VHDA loan products, the VHDA website www.vhda.com has a list of approved lenders under Homeownership Services, subsection Buying a Home: Find a Lender. Click on Loudoun County for a list of local lenders. If your lender is VHDA-approved, have them email Loudoun County Department of Family Services at karen.thorson@loudoun.gov to request a SPARC lender information packet.

For more information on Loudoun County’s Affordable Dwelling Unit Program contact ADU Intake at 703-737-8043.

SPARC for FORECLOSED PROPERTIES:

This is a new allocation of funds from VHDA for Fiscal Year 2009 (FY 09). Incomes must fall between 30% and 80% AMI, adjusted by family size, as determined annually by HUD (see income chart below). Households with incomes greater than 30% and lower than 60% AMI may qualify for 1% interest rate discount. Households with incomes greater than 30% and lower than 80 % AMI may qualify for ½% interest rate discount.

Homes to be purchased must currently be a foreclosed property in one of 10 limited areas of the County. SPARC funds cannot be used to keep a home from going into foreclosure. The areas eligible for SPARC use are designated by census tract (see chart below). No exceptions can be made.

Additionally, all individuals, families or households must currently reside and/or work in Loudoun County for a minimum of the most recent 6 months. Documentation of residency and/or work will be required. Documents may include but are not limited to: Virginia Drivers License or Identification card: wage statements; utility bills; current lease agreement; or legal documents reflecting current residency. Returning military personnel who met the residency requirements prior to active-duty assignments must provide evidence establishing previous residency.

To determine if the foreclosed property you are interested in purchasing is located within one of the eligible census tracts, contact your realtor or lender and provide them with the list of tract numbers from the chart below. Realtors and Lenders may also contact karen.thorson@loudoun.gov for additional information.

Funds are available first come-first served at the time of reservation. Funding is available July 1, 2008 to June 30, 2009 or until all funds have been allocated. A signed ratified sales contract is required prior to reservation in addition to documentation to be supplied by the lender. No advance reservations are accepted nor at any time will funds be held in anticipation of a contract being signed.

ELIGIBLE CENSUS TRACTS

BROAD RUN/ COUNTRYSIDE	LEESBURG	STERLING/ DULLES	SUGARLAND RUN

6111.01	6105.01	6112.05	6112.04
6111.02		6113
		6114
		6115
		6116
		6117

DOWNPAYMENT/CLOSING COSTS PROGRAM (DPCC)

Note: Loudoun County’s DPCC program is currently undergoing revisions to the program.

At present, the program offers financing of up to $10,000 (based on the sales price of the home), and is repayable to the County in monthly installments over 10 years at an interest rate of 3%. It is recorded as a lien on the property along with your first mortgage. There is no prepayment penalty and may be paid off at any time before the ten years. Funds are available at loan closing for down payment and/or closing costs assistance only, they are not available to be used for earnest money.

Incomes must fall between 30% and 70% AMI, adjusted by family size, as determined annually by HUD (see income chart below). There is a one-time servicing fee of $200 paid to the County of Loudoun at closing. This fee cannot be financed. Additionally, homebuyers must contribute a minimum of $1,000 of your own funds towards the down-payment and closing costs prior to settlement. An application packet for this program may be obtained by contacting Karen Thorson at 703-777-0353 or via email at karen.thorson@loudoun.gov

AREA MEDIAN INCOME CHARTS

For

LOUDOUN COUNTY FINANCING PROGRAMS

# in Household	1	2	3	4
% of Median Income	1	2	3	4
80%	55,450	63,350	71,300	79,200
70%	48,500	55,400	62,400	69,300
65%	45,000	51,500	57,900	64,350
60%	41,600	47,500	53,500	59,400
50%	34,450	39,350	44,300	49,200
40%	27,700	31,700	35,600	39,600
30%	20,650	23,600	26,550	29,500
# in Household	5	6	7	8
% of Median Income
80%	85,550	91,900	98,200	104,550
70%	74,800	80,400	85,900	91,500
65%	69,500	74,600	79,800	84,900
60%	64,150	68,900	73,650	78,400
50%	53,150	57,050	61,000	64,950
40%	42,800	45,900	49,100	52,300
30%	31,850	34,200	36,600	38,950

Based on HUD's Median Income of $99,000 - Effective 02/13/08

Adjusted for Family Size

Loudoun County Department of Family Services

102 Heritage Way N.E., Ste 103

Leesburg, VA 20176

703-777-0353