More Moderate Income Households Now Eligible For Loudoun's Homeowner Loan Program

LOUDOUN COUNTY, VA — Earlier in September, the Loudoun County Board of Supervisors approved an expansion of its homeownership loan programs to address rising costs of down payments for houses.

The approval makes changes to the Down Payment/Closing Cost Assistance Program and Public Employee Homeownership Grant Program and creates a new program, the Down Payment/Closing Cost Plus Program. According to the county, the programs help first-time homebuyers with moderate income buy a home in Loudoun County.

In the Down Payment/Closing Cost Assistance Program, the maximum loan amount is increasing from $25,000 to $70,000 — or 10 percent of the sales price if less than $70,000. It is also changing from a 30-year loan to a 15-year forgivable loan with no interest. The down payment assistance is for first-time homebuyers who earn between 30 to 70 percent of the area median income, which is $46,450 to $108,300 regardless of family size.

For the Public Employee Homeownership Grant Program, the maximum loan amount is increasing from $10,000 to $25,000 and will continue to be a forgivable loan over a five-year period. The program is offered to full or part-time employees who work at least 20 hours per week for Loudoun County government, courts, constitutional officers and Loudoun County Public Schools. Eligible households make 30 to 70 percent of the area median income, or $46,450 to $108,300.

The new Down Payment/Closing Cost Plus Program will serve households making 70 to 100 percent of the area median income, or $108,300 to $154,700 regardless of family size. The maximum loan amount is the lesser of $70,000 or 10 percent of the sales price. The loan is forgivable with a 15-year period and no interest.