Maybe you're buying your first home in Virginia, or perhaps you're relocating to Virginia from another state. Either way, it's important that you educate yourself on Virginia home loans before shopping for a home and mortgage. This article explains what you'll need to know before buying a home in Virginia:
The median price of a home in Virginia is $ 125,400, and, recently, homes in Virginia have been appreciating at rates well above the national average. However, the rate of job growth in Virginia is below the national average. Additionally, income levels in many parts of Virginia are too low to purchase a median-priced home with a conventional loan.
Average interest rates on mortgages in Virginia are just slightly higher than the national average interest rate. Home prices in Virginia can vary very between zip codes. For example, in the summer of 2005, the median price of a home in Richmond, Virginia, was $ 335,000; however, the median price of a home in Roanoke, Virginia, was $ 220,000.
Virginia state law prohibits the issuance of high-cost closed-end fixed-rate second loans. Additionally, Virginia law does not require lenders to issue borrowers a written lock-in agreement. This means that stated interest rates and loan terms issued at the time of mortgage application are not set for any fixed period of time.
The Virginia Housing Fund has programs that stimulate homeownership for low-income, minority, immigrant, and disabled consumers. These programs are available to individuals and families with incomes at or below 50-60% of median household incomes and can not qualify for financing with a conventional mortgage.