1. MORTGAGE
FINANCING IN A NEW
AGE
Financing Options with VHFA

2. Why Choose VHFA?
√ Low VHFA rate using Conventional or
Government underwriting criteria
√ Set pricing/fees for Conventional Loans – no
add on fees for property, credit
score, occupancy, etc.
√ $625 savings on VT Property Transfer Tax –
exempt on the first $110,000
√ Lower PMI Rates
√ Local Lenders

3. Program Compliance
 First Time Home Buyer
 Federal Act Income
 Income and Purchase Price Limits
 Principal Residence
 New Mortgage
 No Other Real Estate Owned
 Appurtenant Land

4. First Time Home Buyer
 No ownership interest in
a principal residence
within last 3 years
 First time home buyer
counties – Addison,
Bennington, Chittenden*,
Grand Isle & Windsor
*except Census Tract 4

5. Federal Act Income
Purpose To determine program eligibility
Income included All income of the borrower(s)
All income of a borrower’s
spouse or civil union partner
(even if they are not liable for
the debt) or other co-owner
Controlling agency Internal Revenue Code
regulating MRB’s

6. Income & Purchase Price Limits
 Income Limits differ
by county & family
size
 Duplex - One
Statewide Purchase
Price Limit
 Refer to VHFA’s
website at
www.vhfa.org

7. Principal Residence
 Borrowers must occupy the property as their
full-time, year round principal residence within
60 days after the closing
No investment properties, recreational homes or if
more than 15% of the property is used for trade or
business

8. New Mortgage
 VHFA funds restricted to new
purchases, not to replace an existing
mortgage
 Exception – replacement of first
construction loan or bridge loan or other
temporary financing (must have an
original term of 24 months or less)

9. No other Real Estate Owned
 Borrower can not hold a
present ownership
interest in any other real
estate
 Exceptions – vacant
land, real estate that is
commercial or industrial
in character, a vacation
property unsuitable for
year-round occupancy or
a single-wide mobile
home in a park not
permanently affixed to
land

10. Appurtenant Land
 The amount of land must only be the amount
necessary to reasonably maintain the basic
livability of the residence and cannot provide a
source of income
Maximum = 15 acres

11. Federal Recapture Tax
? Why do we have it?
? What has to happen for this to apply?
? Who tells the borrowers?
? When and Where do they pay it?
? How does it get calculated ?
Max is 6.25% of Loan amount
? How do borrowers get reimbursed?

12. SendSend them to our
website…

13. Programs
 MOVE Program (MBS)
 Conventional
 Fannie Mae My Community Mortgage (MCM)
 Freddie Mac Home Possible (HP)
 Government
 Rural Development
 FHA
 VA
 Direct Loan Program

14. MOVE Program
Eligible MOVE Loans Advantages
 Conventional Loans –  Conventional or
Government
must meet underwriting w/VHFA
requirements of rates
Fannie Mae MCM or  Reduced pricing for
Freddie Mac HP Conventional MCM or
HP program
 Government Loans –  Variances to “normal”
must meet MCM/HP guidelines
requirements of RD,  VHFA Property Transfer
Tax Exemption
FHA or VA

15. MOVE Program
 Loans originated by local lenders
 Allows Participating Lenders to use Fannie or
Freddie automated underwriting systems
 All servicing is done by US Bank Home
Mortgage – Mortgage Revenue Bond Division

16. MOVE Program – Eligible
Properties
 Single family detached
 New or existing
 Duplexes
 Existing units only
 Must have been occupied as a
residence for at least five years prior to
date of Mortgage Loan
 Condominiums
 Fannie Mae, FHA, VA or RD approved

17. Condominiums & Eligible Mobile Home Parks
For the MOVE program, VHFA
will not keep a list of
condominium projects that are
Fannie, Freddie, FHA, VA or RD
approved.
For the Direct Loan Program
VHFA will review the
documentation and determine if a
project is eligible. Condominium
projects must meet all Fannie
guidelines, with the exception of
the pre-sale requirement.

18. Need more information...
 Visit www.vhfa.org
 Contact Bonnie Black at VHFA
 bblack@vhfa.org
 802.652.3427