The Fairfax County Redevelopment and Housing Authority (FCRHA) is collaborating with the Virginia Housing and Development Authority (VHDA) to assist qualified first-time homebuyers in purchasing a home in Fairfax County. VHDA has set aside $8 million in funding to buy down the interest rate by one percent for purchasers eligible for the funding.
The funds are available through the VHDA’s Community Sponsoring Partnerships and Revitalizing Communities (SPARC) program. Through SPARC, loans are made at a reduced interest rate (1 percent lower than the standard VHDA lending rate). This enhances the buying power of first-time homebuyers and reduces their monthly mortgage payment – allowing them a stronger opportunity to buy into Fairfax County’s housing market. The maximum sales price for new and existing homes under SPARC is $500,000.
Under SPARC, homebuyers must meet VHDA’s eligibility and underwriting requirements for its first-time homebuyer program. Loans are originated through the VHDA and their lending partners with the FCRHA serving as the Sponsor that approves the lender’s reservation of FCRHA allocated SPARC funding.
The FCRHA previously participated in a similar program with VHDA through $12 million in set-aside funding which has served 33 Fairfax County first-time homebuyers with an average purchase price of $363,000. When the VHDA advertised the availability of SPARC funds, the FCRHA approved an application for the set-aside funding to be designated for first-time home purchasing assistance within Fairfax County.
“Lender partners obtain a mortgage rate lock form executed by the FCRHA which confirms the borrower is eligible to obtain SPARC funding,” said Carol Erhard, Director of Fairfax County Department of Housing and Community Development (HCD) Homeownership programs. VHDA lenders in Fairfax County have been advised by VHDA of the FCRHA SPARC sponsorship, and they will also receive notification from HCD Homeownership staff that funds are available.