West Virginia is known as the Mountain State because it sits entirely within the Appalachian region. It is a unique state for many reasons; most notably being that it was only one of two states formed during the American Civil War. Its unique geographic location means it is often included in several different territorial regions pending on the topic being discussed. It can be considered part of the South, the mid-Atlantic region, the Central Midwest, and even the Northeast.
Despite its lack of wide open spaces and dense population, the state of West Virginia is still home to some 1.8 million people. That means there are plenty of first time home buyers in the state who might need assistance to purchase their first home. The good news is that there are a handful of programs available to the state's residents. The bad news is that they are not nearly as widespread and numerous as they are in other states.
First time home buyers in West Virginia should consult with a real estate agent about lending options and first time home buyers programs that might be available to them. In lieu of a real estate agent buyers can contact a mortgage lender or the state's housing entity, the West Virginia Housing Development Fund.
West Virginia Housing Development Fund (WVHDS)
The West Virginia Housing Development Fund is a public entity very similar to housing agencies in other states. They exist to ensure there is an ample supply of safe and affordable housing for residents and development opportunities for builders in the state. The agency fulfills its mission by providing financing assistance not only to home buyers, but also to builders who are willing to assist in developing land for low and moderate income individuals. The fund provides first time home buyer assistance in the form of two types of loans.
Mortgage Revenue Bond Program
The more common of the two programs is known as the Mortgage Revenue Bond Program. This program provides a fixed-rate mortgage for a term of either 25 or 30 years. Loans can be obtained for up to 100% of the total purchase price, and under certain circumstances, borrowers may be eligible to receive additional assistance to pay for closing costs or down payment. To be eligible, a home buyer must meet the definition of a first time home buyer as someone who has not owned a home within the previous three years, in 20 specified counties.
Certain restrictions apply including maximum income and the sales price limits. Both of these limits are determined according to the average in the geographic area where the house is being purchased. Also, properties must be located in the state and must be used as the primary residence of the home buyer for a specified amount of time. Borrowers must have a decent credit rating and must demonstrate sufficient income to make monthly mortgage payments.
Home Ownership Assistance Program
West Virginia's Homeownership Assistance Program is a little more difficult to obtain, primarily because it has benefits the previous program does not. This program offers closing costs and down payment assistance upfront to qualified individuals. First time home buyers will also have the option of selecting a 15-year loan of up to $15,000 with a five year deferment period. During the first five years the interest rate would be 0% with no monthly payments due. The remaining 10 years of the loan is fully amortized but still at 0% interest for qualified buyers.
There are obvious income and purchase price restrictions for this program. Borrowers must have an excellent credit score and prove sufficient income, just as with the previous program. Details of the Homeownership Assistance Program are available from the WVHDS.
Local and Non-Profit Programs
In most states there are a handful of first time home buyer programs administered by non-profit groups, local municipalities, or counties. A list of such programs can usually be found on the website of the Department of Housing and Urban Development (HUD). At this time HUD does not list any such programs available in West Virginia. If you're a first time home buyer in that state you are encouraged to check back regularly as the availability of such programs changes without notice.