The Suffolk Redevelopment and Housing Authority in partnership with the City of Suffolk assists in creating homeownership opportunities by providing downpayment and closing cost assistance for first-time homebuyers through the HOME Downpayment and Closing Cost Assistance Program. First-time Homebuyers can receive up to $14,500, if approved.
Buyer Eligibility Guidelines
Must not have owned a home in the last three years
Income cannot exceed 80% of Area Median Income
Buyer must complete VHDA First Time Homebuyers Class in person and provide signed certificate
Attend at least 2 one-on-one sessions with a HUD Certified Housing Counselor
Buyer must contribute at least 1% of the sales price ($500 minimum)
Must not have entered into a ratified sales contract prior to receiving eligibility notice
Property Eligibility Guidelines
Must be the buyer’s primary residence
Single family detached, attached or manufactured homes qualify
Must pass a Housing Quality Standards inspection
Must be free of lead-based paint hazards
Must be in Suffolk
Copy of recent pay stubs for all employed household members covering a 60 day period
Copy of statement of Social Security, SSI, annuities, or pension verification
Copy of Department of Child Support Enforcement statement of monthly payments for last 12 months or copy of divorce decree stating such payments
Copy of alimony payments or divorce decree stating such payments
Copy of statements of interest, dividends, and other net income of any kind from real or personal property
Terms of Downpayment and Closing Cost Assistance Program
A promissory note, deed of trust and homebuyers agreement must be signed for the grant amount.
Grant funds are in the form of an amortized, “forgivable loan.” Twenty percent of the total amount of the loan funds is forgiven annually. After the fifth year, no balance remains.
If the homebuyer does not remain in the home for the five-year affordability period, then the amount remaining will be recaptured at closing of the sale or transfer of the property.
The homeowner may repay without penalty.
If the homeowner sells, transfers, leases, deeds or conveys all or part of the property or any interest within five years of the date of closing, the note is in default. Upon sale or transfer of the property, title transfer, or death of the qualifying person, repayment of the existing benefit amount remaining would be required in accordance with the security instrument.