Virginia Housing and Community Development Corporation

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**Policy Statement for the Virginia Individual Development Account (VIDA) Program**

The Virginia Individual Development Accounts (VIDA) program helps qualified individuals save for a down payment on a home. Eligible participants receive training, support and match funding on their savings. The current match rate is $10 for every $1 the participant saves, earning up to $10,000 in match to be used towards down payment and closing costs.

Applicants are required to open their account with a $100 deposit and deposit a minimum of $40 each month until under contract to purchase a home. Participants must make a minimum of four (4) deposits before funds may be withdrawn for down-payment and must complete their purchase within twenty-four months of enrollment. Individuals seeking to enroll in the VIDA program must adhere to the following criteria:

1. Enrollment in the VHCDC Home Ownership Assistance Program:
Individuals must be enrolled in the VHCDC Home Ownership Assistance Program and must be in full compliance with its terms and conditions.  All enrollees will satisfy the following:

  1. First-Time Home Buyers College (12 hours or more)
  2. Two (2) Pre-Purchase Housing Counseling Sessions
  3. Three (3) Consecutive Months of Personal Financial Statements (verified by statements)
  4. Communicate Progress (Work Plan Tasks, Savings, Debt Resolution, etc.) Monthly

2. Recommendation by VHCDC Housing Counselor:
Participants must be recommended for participation by a VHCDC Housing Counselor, indicating their readiness and suitability for the program. Counselors shall ensure the following:

  1. Net Worth is Less than $10,000 (VIDA Balance Sheet)
  2. No Open Collections, Judgements, or Charge-offs
  3. Household Spending Plan Provides Ample Funds for Contribution to VIDA Savings
  4. Two (2) Years Earned Income

3. Demonstration of Ability to Purchase a Home:
Participants must demonstrate the ability to purchase a home within 24 months of enrollment in the VIDA program. The Housing Counselor shall use his/her best judgment to determine participant readiness.  Participants must demonstrate sufficient funds ($2,500) available for the following:

  1. Emergency Savings - $1,000 (May be satisfied from available credit, retirement, etc.)
  2. Mortgage Application Fee / Credit Report Fee - $75 (Lender may waive)
  3. Earnest Money Deposit - $500
  4. Home Inspection & Appraisal - $1,000

4. Earned Income:
Eligible individuals must have earned income from full-time employment, part-time employment, or self-employment.  This will be verified by prior two (2) years federal income tax returns.

5. Household Income Limits:
The household income of participants must not exceed the 2024 Adjusted Household Income Limits for their Metropolitan Statistical Area (MSA).  This will be verified by prior two (2) years federal income tax returns.

6. Verifiable Net Worth:
Participants must have a verifiable Net Worth Less Than $10,000 at the time of enrollment in the VIDA program.  This will be verified by the TRI-Bureau Credit Report, prior two (2) years federal income tax returns, bank statements, and other documentation, as required.

These criteria ensure that participants are financially prepared and eligible to benefit from the savings incentives and financial education provided by the VIDA program. The program aims to empower individuals to achieve sustainable homeownership and financial stability.

**Implementation and Compliance **

  1. Compliance with these eligibility criteria will be verified at the time of application and periodically throughout participation in the program.
  2. VIDA program administrators and VHCDC Housing Counselors will provide guidance and support to participants to ensure they meet the program requirements and successfully achieve their homeownership goals.

This policy statement outlines the foundational requirements for participation in the VIDA program, as administered by Virginia Housing and Community Development Corporation, reflecting our commitment to promoting homeownership opportunities and financial empowerment in Virginia.

>>>>> See the Virginia Individual Development Account (VIDA) Program Overview <<<<<

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