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Sponsor Partnership and Revitalizing Communities (SPARC)

** SPARC IS CURRENTLY AVAILABLE **

SPARC (Sponsoring Partnerships And Revitalizing Communities)

SPARC is a low interest mortgage program available to first-time homebuyers using a Virginia Housing Development Authority (VHDA) loan product for their first trust mortgage. The VHDA has provided the Fairfax County Department of Housing and Community Development (DHCD) $12.5 million of funding to be used to help eligible first-time homebuyers purchase homes in Fairfax County. Half of these funds, 6.25 million, is available for loans at one half percent (.50%) below the current VHDA rate. The remaining 6.25 million is available at the prevailing FHA Plus rate for the VHDA. FHA Plus is a VHDA-financed, FHA-insured home loan program designed to assist qualified borrowers who need down payment and closing costs assistance. 

How does SPARC work?

SPARC funds are awarded to Fairfax County DHCD, however, the County cannot directly loan this money to homebuyers. VHDA loans are reserved through private mortgage lenders. Fairfax County DHCD is responsible for insuring these funds are being loaned to eligible buyers for eligible home purchases. The funds allocated in Round 8 are limited to government insured loans only.  These funds are available until June 30, 2010 or until all funds have been committed.

How do I use SPARC to purchase a home? 

The first step in borrowing SPARC funds to buy your home is to find your home. Once you have found a home and signed a sales contract, you will need to apply for your mortgage. When you meet with your lender to complete your mortgage application, you should notify your lender that you intend to use Fairfax County's SPARC program to finance your mortgage.

Your lender will need to fax Fairfax County DHCD a form requesting that some of the County's SPARC funds be used to finance your home purchase. In addition to the reservation form, the lender will need to submit 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 requires classroom training)
• SPARC Household Demographic info sheet (see Lender Information to download)

All reservations are reviewed within 2 business days of receipt.

How do I apply for SPARC? 

The SPARC application process is actually part of your mortgage application process. All reservation forms must be submitted by a mortgage lender and funds are only reserved for pending sales on properties with a ratified sales contract. SPARC funds cannot be reserved in anticipation of a purchase at some indeterminate future date.

Because of these restrictions, the only application step for eligible buyers interested in using SPARC is informing their mortgage lender. If your lender has questions or needs a copy of the reservation form, have them visit our website and click on the 'LENDER INFORMATION' link in the Quick Links tool bar.

SPARC Eligibility

SPARC funds are available if you and the home you are purchasing meet the following eligibility requirements:

• You must be using a VHDA loan product for your first trust mortgage.
• You must live and/or work in Fairfax County (Fairfax and Falls Church Cities excluded).
• You cannot have owned a home for the past three years.
• You must have a valid VHDA Homeownership Education certificate. (SPARC requires classroom training)
• The home you are buying must be located within Fairfax County (Fairfax and Falls Church Cities excluded).
• The home you are buying must cost $408,100 or less.
• The home you purchase must be you primary residence (you cannot buy vacation, second, or investment properties).
• Your gross annual household income must not exceed:
  • $86,900 or less if there are 1 or 2 persons in your household; OR
  • $100,000 or less if there are 3 or more persons in your household.
    
    

1/2% SPARC
Household Size	Maximum Income
1 or 2	$86,900
3 or more	$100,000

By meeting these eligibility requirements, the interest rate on your SPARC loan will be ½% below the interest rate of the VHDA loan you are using. 

FHA PLUS

FHA Plus is a VHDA-financed, FHA-insured home loan program designed to assist qualified borrowers who need down payment and closing costs assistance.  Borrower(s) must have cash available equal to a minimum of 1% of the sales price.  The second mortgage is limited to 5% of the lesser of sales price or appraised value.  The interest rate for the first and second (both VHDA-financed) mortgage is slightly higher than VHDA's standard fixed-rate programs. The terms are 30 years.  The combined total of the two loans cannot exceed the VHDA sales price limit.  VHDA standard sales price and income limits apply.  The standard FHA application/disclosure along with FHA PLUS program disclosure and application are required.  Additional information concerning the FHA PLUS program may be obtained by contacting your local VHDA originating lender or by contacting VHDA’s originations department. 

VHDA Eligible Loans

The VHDA offers a variety of loans programs which are eligible for use with the SPARC program. Learn more about the VHDA's loan programs or visit the VHDA web site at www.vhda.com.

 

Fairfax County is committed to nondiscrimination on the basis of disability in all County programs, services and activities. Special accommodations will be provided upon request. Please allow seven working days for preparation of materials. For information call 703-246-5101 or 703-385-3578 (TTY).