- A. The authority may make or finance mortgage loans on authority real estate owned (REO) condominiums pursuant to the loan program provisions set forth in 13VAC10-40-230 (mortgage loan programs funded by taxable bonds), except as altered by the provisions of this section.
- B. The new mortgage requirement shall apply to REO condo loans (refinances are not permitted under this program).
- C. For purposes of subdivision 2 of 13VAC10-40-230, the income limits for applicants for REO condo loans shall be (i) for applicants with a household size of one person, 120% of the greater of the applicable area or statewide median family income and (ii) for applicants with a household size of two or more persons, 150% of the greater of the applicable area or statewide median family income.
- D. The requirement in subdivision 4 of 13VAC10-40-230 that a condominium unit must be approved by Fannie Mae or Freddie Mac or satisfy the requirements for their financing shall not apply.
- E. The maximum loan amount for REO condo loans shall be 97% of the lesser of the sales price or appraised value.
- F. The minimum credit score shall be 660 for all applicants, regardless of loan-to-value ratios.
- G. The maximum debt ratios for REO condo loans shall be 35% and 45%.
Statutory Authority
§ 36-55.30:3 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 35, Issue 14, eff. March 4, 2019.