West Virginia Mortgage Overview
West Virginia is one of the least expensive
places to live, making it easy for first-time homebuyers to buy a home. Whether
you have a large down payment or no down payment, there are ways to buy a home
in West Virginia.
Here are the top loan programs for
West Virginia conventional loans
the traditional loan most people think about with a mortgage. You don't need a
20 percent down payment though, you can get a loan with 3 percent down if
you've never owned a home or 5 percent if you have. Conventional loans require
a 660 credit score and low debt to income ratio of around 36 percent to
qualify. You will pay PMI if you put less than 20 percent down, but only until
you owe less than 80 percent of the home's value.
West Virginia FHA loans
FHA loans are for
borrowers with lower credit scores. FHA loans require just a 3.5 percent down
payment with a credit score as low as 580. You can also get a loan with a 500 -
579 credit score but you must make a 10 percent down payment. FHA loans have
mortgage insurance that lasts for the loan term.
West Virginia VA loans
VA loans are for
veterans or current military members. VA loans offer 100 percent financing, but
you only need a 620 credit score. VA loans have flexible debt ratio guidelines and
are lenient about other qualifying factors. VA loans have an upfront funding fee
but not mortgage insurance.
West Virginia USDA loans
USDA loans are for borrowers
in a rural area who can't get any other loan. It's for low to moderate-income
families. USDA loans require a 640 credit score and a max 41 percent debt
ratio. You must live within the USDA boundaries, but many areas of West
Virginia are 'rural.'
Programs in West Virginia
If your income doesn't
exceed the stated income
maximums for the area and the property's value doesn't exceed the limits,
you may be eligible for a 30-year fixed rate mortgage with 100 percent of the
sales price as your loan. You may also use down payment assistance to cover the
Down Payment Closing Cost Assistance
also get down payment and/or closing cost assistance of $7,500 for loans with a
90 percent or higher LTV or $10,000 for loans with an LTV less than 90 percent.
Movin' Up Program
The Movin' Up program isn't
just for first-time homebuyers, but it provides down payment assistance to help
you buy a larger home if you outgrew your home or buy your first home.