Lender Information

Fairfax County DHCD staff appreciates the work each lender does in helping us assist first time homebuyers realize the American Dream. This page summarizes the rules, procedures, and criteria for each of our financing programs. However, if you have specific questions not answered by this web page, please contact our office at 703-246-5087.

One characteristic shared by all of our financial programs is that availability of funds is limited. Once a funding pool is depleted the related program is effectively closed until replacement funds can be secured. Because of these funding limits, all funds are available on a first-come, first-serve basis. While we will make every attempt to accommodate you and your client, we cannot issue letters or other documentation that makes a guarantee of assistance. Funds committed only upon receipt of a ratified sales contract. If you have questions regarding the availability of funds for a specific program, please contact our staff at 703-246-5087.

In addition, please note that once SPARC funds are reserved, they are removed from Fairfax County DHCD’s pool of available funds. Unused funds can only be returned to the funding pool by the original reserving lender. Because these funds are limited, please be sure to cancel any reservations for loans which do not go to closing so the funds can be used to help other homebuyers.

Please select the program you are interested in to jump to that section of the page:

SPARC
(Sponsoring Partnerships and Revitalizing Communities)
Starting August 1, 2008 reservations will be accepted towards the allocation of $16,000,000 that has been awarded to Fairfax County. This includes $12 million of 1/2% below the current VHDA interest rate and $4 million at 1% below the applicable interest rate.

Home Stride
No Home Stride funds were allocated for FY 2009.

HELP
(Homebuyer Equity Loan Program)
Please note that this program is being offered to certain priority categories who purchase foreclosed properties. Please see information for the Silver Lining Initiative.

• The buyer(s) must be using a VHDA loan product for their first trust mortgage.*
• The buyer(s) must live and/or work in Fairfax County
  (Fairfax and Falls Church cities excluded).
• The buyer(s) must not have owned their primary residence during the past three years.
• The buyer(s) must have a valid VHDA Homeownership Education certificate.
• The home purchased must be located within Fairfax County (Fairfax and Falls Church Cities excluded).
• The home purchased must have a sale price of $408,100 or less.
• The home purchased must be purchased as a primary residence (no secondary or investment purchases).
• The buyer(s) must have a gross annual household income of:
  • $86,900 or less for households of 1-2 person(s); OR
  • $100,000 or less for households of 3 or more persons

* Flex/Alt and 1st Choice Interest Only loan programs are not eligible for use with SPARC funds.

Reserving Funds
All reservations are made by a lender. Funds are available for reservation on a first-come, first-serve basis. Funds cannot be reserved in anticipation of a home purchase; only for pending purchases initiated by a ratified sales contract. To reserve funds, a SPARC Round 7 Reservation form must be submitted with copies of the following documentation:

• Your Ratified Sales Contract
• Your loan application (called a Uniform Residential Loan Application)
• Your valid VHDA Homeownership Education certificate
• SPARC Household Demographic info sheet (see below to download)

Reservations and their supporting documentation must be faxed to:

Reservations will be reviewed within two (2) business days of receipt. After a reservation is approved by Fairfax County DHCD, the approved reservation form will be returned to the reserving lender via fax. This approved reservation must then be faxed to the VHDA to the attention of Debra Bailey at 804-783-6728. After forwarding a reservations to the VHDA, please contact Debra Bailey at 1-877-428-9218 for the status of an individual reservation.

Please note, funds that are reserved but are not used prior to the end of the 60-day lock in period are removed from the pool of available funding. Reserved funds can only be released by the original reserving lender. If a reserving lender has outstanding reserved funds, Fairfax County DHCD reserves the right to hold the reservations such lenders until previously reserved funds are released.

SPARC Household Demographic info sheet (PDF)

Round 7 SPARC Reservation Form (PDF)

VHDA Current Rates

Homebuyer Equity Loan Program (HELP)

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 extending 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.  Registration for a HELP Orientation will begin on August 1, 2008 and will be limited to the first 150 households that fall within one of the priority areas.  To register on or after August 1, contact Homeownership staff at 703-246-5087 between the hours of 1 p.m. to 4:00 p.m., Monday through Friday.

At your HELP Orientation, which will be scheduled for September 2008, 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.