Add a Little SPARC to Your Loan!

Hello Hampton Roads,

There are many benefits available to the first time home buyer in Hampton Roads that it can sometimes feel like a maze of options and choices. There are low down payment loans (3% conventional or 3.5% FHA loans), 100% financing loans, down payment assistance and grant funds and now you can add SPARC to the list!   .  

What's SPARC?  

SPARC stands for Sponsoring Partnerships & Revitalizing Communities and are funds from Virginia Housing (VHDA.com) given to government agencies, local housing partners, and non-profits that are used for reducing mortgage interest rates. The award limit for these funds can range anywhere from $100,000- $10,000,000.  They are used to give first time buyers a below market interest rate by means of a 1% reduction below Virginia Housing's published mortgage rates for eligible loan products. 

SPARC funds can be used with the VHDA purchase loans and grant products:

• FHA
• Conventional (reduced and no MI)
• VA
• USDA
• 100% Financing plus loans
• DPA (down payment assistance grant)
• CCA (closing costs assistance grant)
• City Programs for Chesapeake, Portsmouth, Norfolk and Suffolk

The entities that are awarded SPARC funds are known as  "sponsoring entities" and a lender who is requesting SPARC funds on behalf of a buyer, must complete a SPARC reservation form that is signed by the sponsor. 

Examples of sponoring entities in our area are:

The Hampton Roads Planning District Commission (HRPDC) was allocated $4 million in SPARC funds that can also be used with their down payment and closing costs assistance programs in specific cities such as  Chesapeake, Suffolk, and Portsmouth. 

The Urban League of Hampton Roads received $2.5 million in SPARC funds.

If you'd like to learn more about using SPARC funds or about any of the other incentives and programs offered to first time home buyers in Hampton Roads, please contact me and schedule a call to talk about your real estate goals!  https://freehomebuyerswebinar.com/book

 
Thanks for Reading,

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