Please note that this program is being offered to certain priority categories who purchase foreclosed properties. Please see information for the Silver Lining Initiative below.

 

FAIRFAX COUNTY’S SILVER LINING INITIATIVE
Frequently Asked Questions

On June 30, 2008 the Fairfax County Board of Supervisors made a commitment to assist first-time homebuyers to purchase foreclosed homes in the County.  The Fairfax County Department of Housing and Community Development (HCD) will begin implementation of the program on August 1, 2008 and anticipates assisting 100 first-time homebuyers to purchase foreclosed homes across the County within the next two years.

What is the Silver Lining Initiative?
The Silver Lining Initiative is a partnership between you and Fairfax County that can help bring the dream of buying a home within reach.  The Home Equity Loan Program (HELP) is a loan for up to $91,767 (loan amount is determined by your household income and the price of the house) that can be used to close the gap between an affordable first mortgage and the sales price of a market rate home. Please see the income limits in the box below.

Who can participate in the Silver Lining Initiative?
Priority for the program will be given to households currently on the existing First-time Homebuyers waiting list, Fairfax County Public Schools and Government employees, and current HCD clients who are working towards homeownership as part of a special initiative.  Once outreach has been completed to these three groups, the program will open up to others if funds are still available.

How does HELP work?
Once your HELP application is approved, HCD issues you a Preliminary Award Letter indicating how much HELP funds you are eligible to borrow.   By combining your HELP amount with the amount that your mortgage lender has pre-approved you to borrow, you will be able to purchase a home on the market with a higher sales price than using just a first mortgage pre-approval.

How much can I borrow and what are the terms?
Loans made under the Silver Lining Initiative will require a 15-year balloon. The loans will be extended another 15 years only if the homeowner continues to income qualify.

The maximum possible amount of assistance available is $91,767 if you are within the income limits. However, the actual amount of a HELP loan is based on the sale price of the home you purchase and your household income.  You will also need to have assets on-hand equal to 1 percent of the sales price of the home you purchase and you cannot receive money back at your settlement.

How do I qualify for the program?

• You must fall within one of the three priority areas listed above (see above: Who can participate in the Silver Lining Initiative?).
• You must buy a bank-owned, foreclosed home.
• You cannot have owned a home for the past three years (all adult family members).
• You must complete a certified homebuyer education class (all adult family members).
• You must live and/or work in Fairfax County (Fairfax City and Falls Church City excluded).
• You must receive a current conditional pre-approval for a first mortgage with term meeting HELP guidelines (see below: What are HELP eligible first mortgage loans and lenders?).
• You must have 1 percent of the sales price for downpayment and closing costs.
• The home you are buying must be located within Fairfax County (Fairfax and Falls Church Cities excluded).
• The home you purchase must be you primary residence (you cannot buy vacation, second, or investment properties).
• You may qualify for a HELP second trust of up to $91,767, if your gross annual household income is within the limits in the chart below.  The home you are buying cannot cost more than $362,790

• If your gross annual household income is above these limits, but is within the limits in the chart below, you may qualify for a HELP second trust of up to $73,100.  In this case, the home you are buying cannot cost more than $385,000.  The income limits according to family size are:

 

What are HELP eligible first mortgage loans and lenders?
Because of the terms and program requirements, there are limitations on the types of first mortgages that may be combined with HELP funds to purchase.  Likewise, only lenders who are compliant with HELP underwriting rules can be used as your first mortgage lender.  If your lender is not familiar with HELP rules and underwriting guidelines, they will need to contact the Homeownership Staff at 703-246-5087.

Ineligible first mortgages include: interest only loans, adjustable rate mortgages (ARMs), or balloon loans.  First trust financing must be fixed rate loans which can qualify according to FHA, VA, VHDA, or 35/41 conventional ratio standards.

How do I apply?
If you are interested in applying for a HELP Preliminary Award Letter, you will need to attend a HELP Orientation.  HELP Orientations are on the following dates and are limited to 50 households attending.  Due to space only one household member may attend.

Wednesday September 17, 2008	7-8:30	3700 Pender Drive
Thursday October 16, 2008	7-8:30	3700 Pender Drive
Thursday November 20, 2008	7-8:30	3700 Pender Drive

To register on or after August 1, contact Homeownership staff at 703-246-5087 between the hours of 1 p.m. to 4 p.m., Monday through Friday.

At your HELP Orientation you will receive a HELP application and instructions. This application must be submitted with the appropriate documentation.  Incomplete applications will be returned via mail. Once your complete application and materials are reviewed by Homeownership Staff, you will be contacted for a one-on-one meeting to review program rules and receive your HELP Preliminary Award Letter.