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Virginia Housing is pleased to announce both the first-time homebuyer requirement and inclusion of income in the household is no longer required for non-borrowers on title! This applies to MCCs, the Plus Second Mortgage, and Government programs (FHA, VA, RHS). Note: Inclusion of all household member income still applies to the Virginia Housing Grant programs.

Unsure what this means? Here’s an example to help explain:

John & Susan Smith are buying a home. John is the only person that applied for a Virginia Housing FHA loan with Plus Second Mortgage and MCC. Both he and Susan will take title to the property even though Susan is not a borrower. In this scenario all of John’s income is considered for household income purposes, but Susan’s income is not since she is not a borrower. If this transaction included a Virginia Housing Grant in lieu of the Plus Second Mortgage then Susan’s income would be considered for household income purposes.

Effective Date

This is effective immediately!

Documentation Changes

The Programs Disclosure and Borrower Affidavit (Exhibit E) has been updated to reflect this change and is available for use here. We understand some Originating Lenders include Exhibit E in their system generated origination package and it may take some time for this to be implemented. Originating Lenders are encouraged to use the updated Exhibit E immediately even if their system has not yet been updated. If the old Exhibit E is used then it is the Originating Lender’s responsibility to cross through applicable areas in the Exhibit E regarding non-borrower on title. After a short period of time the new Exhibit E will be required by Virginia Housing.

All impacted program guidelines and resources available on Virginia Housing’s website have been updated.

Disclosure and Borrower Affidavit (Exhibit E)

Household Income Matrix


Please contact Underwriting@VirginiaHousing.com.