The Norfolk Now Homeownership Program allows qualified participants the chance to purchase a home with a low mortgage interest rate and provides for up to 20% of the sales price in down payment and closing cost assistance.

The Norfolk Now Homeownership Program allows qualified participants the chance to purchase a home with a low mortgage interest rate and provides for up to 20% of the sales price in down payment and closing cost assistance.  The Norfolk Now program is a combination of two existing programs:  HOME, a Department of Housing and Urban Development (HUD) program and SPARC, a Virginia Housing Development Authority (VHDA) product.  The SPARC program offers an interest rate reduction on your VHDA mortgage up to 1% below VHDA’s going rate.  The HOME program offers down payment and closing cost assistance up to 20% of the sales price to first-time home buyers as secondary financing.

Program Benefits:

• Down payment & closing cost assistance of up 20% of sales price.
• Assistance is forgivable and non-payable provided the purchased property is the borrower's principal residence for a specific term based on the amount of assistance.
• SPARC Interest Rate Mortgage Loan that is ½% to1% below the published VHDA rate.
• Assistance provided on qualifying new or existing homes anywhere in the City of Norfolk.
• Home buyer will receive a one-year homeowners warranty at no additional expense.

Program Requirements:

• Must be a first-time homebuyer.
• Fall under HUD HOME program maximum income guidelines based on household size.
• 1 person household = $36,450
• 2 person household = $41,700
• 3 person household = $46,900
• 4 person household = $52,100
• 5 person household = $56,250
• 6 person household = $60,450
• 7 person household = $64,600
• 8 person household = $68,750
• Complete a VHDA Homeownership Class and obtain certificate.
• Obtain a 30-year, fixed rate VHDA mortgage loan approval (click here for the NDRC Lender Connection).
• Have at least $3,000 in savings (borrower must make a minimum contribution of at least 1% of the sales price from their own funds).
• Purchase a single family home within the City of Norfolk > (click here for the NDRC Real Estate Ambassadors).
• A certified housing inspection is required and the home must meet HUD Housing Quality Standards.  The buyer will be required to pay a $250 fee for this home inspection.  This fee is reimbursable at closing.  The purchase agreement must be written to provide a satisfactory home inspection.  If any items are found not to meet HUD Housing quality Standards these items must be corrected prior to closing.

Program Process:

1. You must complete a VHDA Homeownership Class and obtain certificate.
2. You must be approved for a VHDA fixed term mortgage by a VHDA approved lender.
3. You must have a verifiable saving of at least $3,000.
4. Once you have met these requirements you or your lender will need to fax a copy of your approval letter, VHDA class certificate and a bank statement indicating at least $3,000 in savings to the NDRC (757-441-1301) to start the application process.  Once your approval letter is received, NDRC will send it to NRHA and NRHA will send you an application.
5. You will need to complete the application and return it to NRHA.  Once received by NHRA, they will contact you to schedule an appointment and conduct an income verification and affordability analysis.  Once this process is complete you will be notified if you are approved for the program.  If approved, you will be informed of how much of a house you can afford, how much assistance you qualify for and how much of a mortgage you will need.
6. Once approved for the program you can find a real estate agent and begin looking for a home.  DO NOT write an offer/contract/purchase agreement for home purchase prior to program approval.  This may make you ineligible for assistance.
7. Once an offer has been made on a home NHRA (Les Weidner, 757-314-1668) must be contacted to schedule a home inspection.
8. Once under contract on a home your lender will need to fax a SPARC reservation form to NDRC (757-441-1301).

The City's homeownership programs are streamlined for those buyers that are credit worthy and ready to begin the home buying process. If you have credit issues, do not know where to start and/or would like someone to guide you through the often complex home buying process, contact HomeNet. Although HomeNet offers the same financial assistance as the City of Norfolk, this program also offers in-depth comprehensive homeownership, pre and post purchase couseling, homeownership and education classes, credit repair, and assistance developing a strategic plan to assist you overcome any barriers to homeownership. Please contact Sydney Pettyford at 757-314-4202 or spettyford@nrha.norfolk.va.us.

The City of Norfolk and Norfolk Redevelopment and Housing Authority are partners in the Norfolk Now Homeownership Program, working hard to make home ownership an affordable reality.

For more information contact the

NDRC at 757-664-6770.

To find out more on the VHDA Homeownership Class as well as to find a complete listing of VHDA approved lenders please visit www.VHDA.com.