Office of Housing and Community Development Offers Help to First-Time Homebuyers

The dream of home ownership might be within reach for people who thought they could never afford to buy a house.

The Prince William County Office of Housing and Community Development offers the First Time Home Buyer (FTHB) Program, which provides 20% or 30% down payment assistance to qualified low-to-moderate income households that currently live or work in Prince William County, to include the cities of Manassas and Manassas Park, and the towns of Dumfries, Quantico and Haymarket. An additional 3% is provided to assist with closing costs.

The FTHB Program is federally funded through the U.S. Department of Housing and Urban Development (HUD) and is administered by Prince William County Office of Housing and Community Development.

“The funds provided are secured by a 30-year deferred second Deed of Trust. There are no monthly payments,” said Community Development Analyst Angie Bassette. “The loan is completely forgiven if the homebuyer maintains the home as their primary residence for 30 years. If they decide to sell the property before the 30-year expiration of the affordability period, or if the home is no longer their primary residence, the loan becomes due and payable at that time.

The amount of down payment assistance is determined by the household’s total gross income compared to HUD’s Area Median Income Tables based on the number of household members.

“If the gross household income is at or below 60% of area median income based on household size, the down payment would be 30%. If the gross household income is between 60% to 80% of the area median income, the down payment would be 20%,” Bassette said.

Applicants must live or work in Prince William County, the cities of Manassas or Manassas Park or the towns of Dumfries, Quantico or Haymarket to be eligible for the program, which allows buyers to purchase a house with a maximum sales price of $399,000.

“If a household was eligible for the 30% down payment, plus the 3% closing cost credit, and they purchased a home for the maximum sales price limit of $399,000, the amount of assistance would be $131,670,” Bassette said.

Homebuyers are required to have 1% of their own funds in the transaction and a minimum credit score of 640 with no open judgments or collection accounts.

Before applying for the FTHB Program, applicants must complete three educational sessions through the Virginia Cooperative Extension (VCE)-Prince William: Smart Money Management two-hour virtual class, complete a financial assessment with one of the VCE HUD-Certified housing financial counselors and attend Virginia Housing’s Home Ownership Seminar.

The Smart Money Management class helps with strategies for money management, gives steps to help understand credit, teaches methods to create savings and helps people understand cash flow and set financial goals. This two-hour class is offered twice a month. The first class is typically held the second Tuesday of the month from 1 to 3 p.m., and the second class is typically held the third Wednesday from 7 to 9 p.m. Email [email protected] for registration information.    

The Homeownership Seminar is a six-hour session held on Saturdays that helps people learn about the process of buying a home, create a pre-purchase plan, choose the correct type of mortgage, develop a homebuyer checklist and learn what to look for in choosing a realtor and lender which must be approved by Virginia Housing, formerly the Virginia Housing Development Authority.

The Financial Assessment is a one-on-one session with a HUD-Certified housing financial counselor that helps show people where their money is going and compares income and expenses to assets and debt to help prepare an action plan. The session also teaches budget and savings tools and helps people compute their net worth. Contact the VCE office at [email protected] to learn more or to schedule an appointment.

Families paying rent for someone else’s property can expect annual increases in the rent amount, and they are always at risk of the landlord selling the home. When this happens, the family is forced to relocate, and the availability of decent and affordable housing is not easy to find in this high-cost area. Renters reap no rewards at the end of the lease term, whereas homeowners are investing in their future.

Homeownership provides housing stability for families. Studies have shown that this stability positively impacts health and well-being for all. Many children will do better in school when they have the sense of security that comes with housing stability.   

“Homeownership benefits families and communities alike. Neighborhoods with a higher concentration of owner-occupied homes reflect pride in homeownership, strengthening our communities and promoting a safer environment for all,” Bassette said.