Good News From VHDA! or is it? 2nd Trust Pays Down Payment and Closing Costs!

VHDA recently announced higher income and sales price limits for our area. The Washington-Arlington-Alexandria MSA is now $450,000 sales price limit and $120,900 income limit for up to 2 persons and $140,000 for a 3 or more person households. The VHDA FHA Plus program provides a second trust loan for down payment and closing costs. Buyers must show at least $1000 into the transaction or reserves and attend home ownership class.

I guess there are some buyers that would benefit from this type of loan ( when seller won't or can't pay some or all of closing costs for example). I would hope most borrowers could contribute $1000.00 and attend a class in order to quaalify to buy a home up to $450,000.00. Still feels a little risky to me, but I'm working with some customers that might be helped by this type of loan, so think I'll look into this more thoroughly.