City of Alexandria Announces New Financing Opportunity for First-Time Homebuyers
The City of Alexandria Office of Housing is pleased to announce the availability of Community Homeownership Revitalization Program (CHRP) funds to provide first-time homebuyers with permanent financing for their home purchase. CHRP funding supports the City of Alexandria’s efforts to increase affordable homeownership for income-qualified first-time homebuyers. This funding is made possible by the Virginia Housing Development Authority (VHDA) and applies only to VHDA mortgages. CHRP funds reduce VHDA mortgage loans 1% lower than VHDA’s published First-Time Homebuyer mortgage interest rate. CHRP financing is an allocation; and not a grant or a loan. It does not require re-payment. However, CHRP allocations are only reserved for individual homebuyers after the buyer has a ratified sales contract.
Homebuyers do not have to participate in the City’s Flexible Homeownership Assistance Program to use CHRP funding; but they may eligible. Those interested should contact the Office of Housing. Homebuyers may also be eligible for VHDA’s Down Payment Assistance Grant and should work with their lender to apply for funds.
To qualify for a City of Alexandria-sponsored CHRP allocation, the prospective homebuyer must meet the following criteria:
- Live or work in the City of Alexandria for 6 months prior to request for CHRP funding;
- Have an annual household income at or below 100% of Area Median Income (which ranged from $82,100 for a household of one to $126,600 for a household of five in 2018);
- Be a first-time homebuyer,
defined as someone having had no ownership interest in real property in
the past three years (exceptions may be granted based on circumstances
regarding a termination of prior ownership);
- Receive a first trust VHDA mortgage from a City of Alexandria designated “Participating Lender”; and
- Purchase a home located within the corporate limits of the City of Alexandria.
To provide City of Alexandria-sponsored CHRP funding, the prospective lender must meet the following criteria:
- Be a VHDA lending partner and provide homebuyer with a VHDA first trust mortgage that meets VHDA loan requirements;
- Obtain designation from the City of Alexandria as a “Participating Lender”. To become a Participating Lender, mortgage institution must agree to provide loans per City of Alexandria requirements; as well as, successfully provide financing to at least 1 first-time homebuyer participating in the City’s Flexible Homeownership Assistance Program; and
- Provide required documentation on behalf of borrower to City staff/VHDA to reserve the necessary CHRP funds for individual home purchases (includes 1003, CHRP Reservation Form, Demographic Information Addendum, and verification of Alexandria residency or employment).
Process for Requesting a CHRP Allocation
Lenders and homebuyers who wish to use CHRP funding should contact the City of Alexandria Office of Housing at 703.746.4990 and speak with Vicente Espinoza (email@example.com) or Brandi Collins (firstname.lastname@example.org).
Affordable For-Sale Units
To receive email alerts when affordable for-sale units become available, please sign up for the City’s eNews Affordable Housing Opportunities notices or contact us at 703.746.4990
Neighborhood Stabilization Program: Through this program, the City and its
nonprofit partner Rebuilding Together Alexandria, acquire and fully renovate
distressed properties and offer these homes for sale to income-eligible,
first-time homebuyers. No units are available at this time.
Set-aside Homeownership Program: This program provides a limited number of affordable, resale-restricted units in some newly constructed homeownership developments. The units are priced at levels affordable to low- and moderate-income first-time homebuyers and have long-term affordability requirements. No units are available at this time.
Resale Restricted Homeownership Program: This program helps market resale-restricted units
purchased with City assistance. The units are priced at levels affordable to
low- and moderate-income first-time homebuyers and have long-term affordability
Virginia Housing Development Authority: VHDA offers free classes for first-time homebuyers on an ongoing basis throughout Northern Virginia. Classes are held in English and Spanish. Successful completion of VHDA pre-purchase training gives first-time homebuyers access to VHDA's below-market interest rates. Participants in the City’s homeownership program are required to complete a VHDA pre-purchase training class. To learn more or to register for an upcoming class, click here.
City: The City offers free training opportunities covering a range of topics. To learn more, contact Brandi Collins or Vicente Espinoza at 703.746.4990.
Closing Cost and Downpayment Assistance
Flexible Homeownership Assistance Program: This loan program provides no-interest, deferred payment downpayment and closing cost assistance to first-time homebuyers purchasing a home through the Affordable Set-Aside Homebuyer Program, Neighborhood Stabilization Program, and Resale Restricted Homeownership Program. Two income tiers are used to determine the amount of assistance available to participants. Participants must be approved for a mortgage by one of the Program’s participating lenders. To learn more, download our Program description here, contact Vicente Espinoza (email@example.com) or Brandi Collins (firstname.lastname@example.org), at 703.746.4990.
Additionally, the City of Alexandria offers the Employee Homeownership Incentive Program (EHIP) to employees of the City of Alexandria and the Alexandria City Public Schools which provides an interest-free, deferred payment loan of $10,000 for home purchases in the City of Alexandria. To apply or learn more, contact Vicente Espinoza at email@example.com.