A Guide For First-Time Home Buyers In West Virginia

West Virginia is a breathtaking state. While famous for its rugged landscape and plethora of outdoor activities, West Virginia has a wide variety of housing options for every lifestyle. West Virginia also offers many loan programs and grants to first-time home buyers. If you’re a first-time home buyer hoping to buy a home in West Virginia, keep reading to see if one of these programs might be right for you.

West Virginia Homeownership Stats

Here are a few important statistics on West Virginia home buyers:

Some of the benefits of buying a house in West Virginia include affordable housing and a low cost of living. If you want to stretch your budget, buying a home in West Virginia could be a great option for you.

Does West Virginia Have A First-Time Home Buyer Program?

The state of West Virginia offers assistance programs for first-time and repeat home buyers through the West Virginia Housing Development Fund (WVHDF). The goal of this fund is to increase homeownership and housing in general for persons and families of low- and moderate-income in the state of West Virginia.

West Virginia First-Time Home Buyer Programs

There are several programs in the West Virginia Housing Development Fund that might be able to assist first-time home buyers in West Virginia. See which of these you might qualify for.

WVHDF Homeownership Program

The WVHDF Homeownership Program  is a 30-year, fixed rate mortgage loan where up to 100% of the purchase price of the home can be financed. There is also a down payment assistance program.

To be eligible for the WVHDF Homeownership Program, home buyers must:

• Have income under the set limit – varies by county
• Home price must be under the set limit – varies by county
• Home may be a single-family structure, townhome, condominium, or manufactured home
• Home must be located in West Virginia
• Property included with the home cannot exceed five acres
• Home must be existing or new construction - construction loans are not available
• If the home to be purchased is in Barbour, Berkeley, Boone, Brooke, Cabell, Greenbrier, Hancock, Harrison, Jefferson, Kanawha, Marion, Marshall, Mason Mercer, Monongalia, Morgan, Ohio, Putnam, Raleigh and Wood counties, the buyer cannot have owned a home in the previous three years
• Buyers must participate in a home buyer education class

West Virginia First-Time Home Buyer Down Payment And Closing Cost Assistance

There are several down payment assistance programs and grants available for WV residents. While many of these programs offer 0% down payments and closing cost assistance, there is usually at least some sort of closing cost that buyers will have to pay out of pocket.

WVHDF Homeownership Program DPA

The WVHDF Homeownership DPA program, which offers a first-time home buyer loan program, also offers a down payment assistance program. This program provides down payment and closing cost assistance.

• Up to $7,500 for loans with a loan-to-value ratio greater than or equal to 90% of the purchase price
• Up to $10,000 for loans with a loan-to-value ratio less than 90% of the purchase price

To be eligible for the WVHDF Homeownership Program, home buyers must:

• Have income under the set limit – varies by county
• Home price must be under the set limit – varies by county
• Home may be a single-family structure, townhome, condominium or manufactured home
• Home must be located in West Virginia
• Property included with the home cannot exceed 5 acres
• Home must be existing or new construction – construction loans are not available
• If the home to be purchased is in Barbour, Berkeley, Boone, Brooke, Cabell, Greenbrier, Hancock, Harrison, Jefferson, Kanawha, Marion, Marshall, Mason Mercer, Monongalia, Morgan, Ohio, Putnam, Raleigh and Wood counties, the buyer cannot have owned a home in the previous 3 years
• Buyers must participate in a home buyer education class

WVHDF Movin’ Up Program DPA

The WVHDF Movin’ Up DPA Program was designed to help moderate-income home buyers purchase a new home. You do not have to be a first-time home buyer to participate in this program. This is a down payment assistance program that allows home buyers to finance up to 100% of the purchase price of their home.

To be eligible for the WVHDF Movin’ Up DPA Program, home buyers and the home must meet the following requirements:

• The statewide income limits are set at $130,560 for a one or two-person household and $152,320 for a household of three or more.
• Home price must be under the set limit - varies by county
• Home may be a single-family structure, townhome, condominium, or manufactured home
• Home must be located in West Virginia
• Home must be existing or new construction – construction loans are not available
• Buyers must participate in a home buyer education class

Additional First-Time Home Buyer Mortgage Options In WV

Once you determine how much house you can afford, it’s time to find a mortgage. There are several nationwide first-time home buyer loans that would apply to home buyers in West Virginia:

• FHA loans
• VA loans
• USDA loans

FHA loans

FHA loans are a federal loan program that allow home buyers to secure a mortgage with only 3.5% down payment, assuming that the borrower has a credit score of 580 or higher. This loan can be for the entire value of a home and FHA loans can be made for people with slightly lower credit scores with a higher down payment. This is a great option for home buyers without a lot of savings for a down payment.

VA loans

VA loans are available exclusively to members of the military and their family members. VA loans are available for up to the full value of a home – no down payment necessary. Even if there is no down payment, there is often a VA funding fee which is between 1.25% – 2.5% of the loan value.

VA loans also have some of the lowest closing costs of any loan. This is a great option for members of the military without a lot of savings for a down payment who may be moving around or just starting out in a permanent location.

USDA loans

USDA loans were created to help encourage home buyers to move to rural areas. These loans can cover 100% of the home’s value – meaning no down payment necessary. However, they are very limited. The home must be in a designated rural area and the household income cannot exceed 115% of the median income in the area where the home is located.

This loan is a great option if you have a low to medium income and want to buy a home in a rural area. If you’re able to work remotely and are looking to move out of the city, this could be an option for you.

First-Time Home Buyer Programs In West Virginia By Location

The West Virginia real estate market is, like most of the country, very strong at the moment. While prices are high and home buying is so competitive, it is important to be aware of all of the programs available to home buyers in their house hunting process. The following places in West Virginia offer city specific first-time home buyer programs and assistance.

Charleston

Charleston is the capital city of West Virginia and a popular city to live in. Charleston offers a home buyer assistance program in the form of a HOME Blend loan. This loan covers up to 20% of the home purchase price. This loan is a 10-year loan that is forgiven monthly at a 0% interest rate.

To be eligible for the HOME Blend loan, homeowners must:

• Invest a minimum of $500 cash
• Have an acceptable credit score
• Participate in a home buyer education program
• Qualify for a mortgage for 80% of the home’s purchase price with a qualified lender
• Have a maximum loan amount of $128,000
• Fall under the income limits
• Cannot have owned a home in the previous 3 years

The home must:

• Have a sale price equal to or less than the appraisal value
• Pass an inspection
• Be an existing home – no construction loans

If you are interested in moving to Charleston, be sure to check out the Charleston real estate trends and Charleston homes for sale.

Huntington

Huntington is a city on the Ohio river where West Virginia, Ohio, and Kentucky meet. Huntington’s various housing programs include a home buyer assistance program. This program offers non-interest-bearing loans that can be used for down payments and closing costs. The loan is for up to 25% of the property’s purchase price, not to exceed $25,000, and is to be repaid over a 15-year term.

To be eligible for the Cabell-Huntington-Wayne Housing Consortium Homebuyer Assistance Program, home buyers must:

• Not have owned a home in the previous 3 years
• Have an income under the set limit
• Have stable income and have been employed for at least 1 year
• Attend mortgage counseling
• Be prequalified by an approved lender
• Contribute at least $1,000 toward the investment
• Provide a credit score report
• Occupy the home as a primary residence for the life of the loan

The home must fall under a price limit and be located in Huntington, West Virginia.

If you are interested in moving to Huntington, be sure to check out the Huntington real estate trends and Huntington homes for sale.

Martinsburg

Martinsburg is located in the tip of West Virginia’s eastern panhandle and is a great place to consider moving if you prefer a rural area. Martinsburg’s home buyer assistance program offers a deferred no-interest loan to be used for down payment and closing costs. This loan can be up to $14,500 over a 5-year term. This is a zero-interest loan with no repayment if the buyer remains in the home for 5 years.

To be eligible for the Eastern Panhandle HOME Consortium of West Virginia Homebuyer Assistance Program, buyers must:

• Not have owned a home in the 3 prior years
• Have an income under the set limit
• Keep the home as a primary residence for the duration of the loan (5 years)
• Provide at least $500 of their own funds towards the purchase.
• Obtain a mortgage through a qualified lender
• Complete a home buyer education program
• Purchase a home within Berkeley, Jefferson or Morgan County. Home price limits vary by county.

If you are interested in moving to Martinsburg, be sure to check out the Martinsburg real estate trends and Martinsburg homes for sale.

FAQs About Buying Your First Home In West Virginia

Here are a few frequently asked questions from first-time home buyers in West Virginia.

What credit score is needed to buy a house in West Virginia?

Most home buying programs require a credit score of at least 620. A few programs require a credit score above 660.

How can I buy a house in West Virginia with no money down?

There are a few options for zero-down payment homes in West Virginia. If you qualify for a VA loan or FDA rural property, those programs each offer zero down loans. Otherwise, you will need to qualify for a down payment assistance program to bridge the gap.

How much do you have to put down on a house in West Virginia?

There are a few programs that will enable you to buy a home with no down payment, though you will still owe some closing costs. If you do not qualify for a zero down payment program, the lowest down payment would be with an FHA loan, which has a 3.5% minimum down payment.

What statewide and regional first-time home buyer programs are available in West Virginia?

The West Virginia Housing Development Fund offers a first-time home buyer program and down payment assistance. The U.S. Department Of Agriculture Rural Housing program may work if you are purchasing a rural home. Finally, if you meet the qualifications and are willing to put in physical labor, Habitat for Humanity offers home builds to those who could not otherwise afford them.

The Bottom Line

West Virginia is a beautiful state with a low cost of living and low real estate costs. It could be the perfect place for you to become a first-time home buyer, with the assistance of one of their first-time home buyer programs. If you are ready to move, start the mortgage approval process today.