Why This Program Matters Right Now
For many homebuyers in West Virginia, saving enough money for upfront purchase costs remains one of the biggest challenges when preparing to buy a home. Down payments and closing costs can create significant financial barriers, even for buyers who are otherwise ready to qualify for a mortgage.
The West Virginia Housing Development Fund Low Down Home Loan helps address this challenge by providing eligible buyers with additional assistance toward these upfront expenses. Through a second mortgage structure, the program offers up to $8,000 in assistance to help qualified borrowers move closer to homeownership.
What the West Virginia Housing Development Fund Low Down Home Loan Provides
The West Virginia Housing Development Fund Low Down Home Loan provides assistance that can be used toward a buyer’s down payment and closing costs. The program is designed to reduce the amount of personal funds buyers may need available when completing a home purchase.
The assistance is provided through the West Virginia Housing Development Fund (WVHDF) as a second mortgage. Unlike some assistance programs that provide forgivable funds, this program requires repayment under the terms of the second mortgage.
Key program details include:
- Maximum assistance: $8,000
- Assistance use: Down payment and closing costs
- Funding type: Second mortgage
- Interest rate: 2%
- Loan term: 15-year fixed-rate loan
- Repayment required: Yes
Program Structure Creates Additional Financing Support
The Low Down Home Loan is structured to work alongside a buyer’s primary mortgage financing by providing additional funds for upfront home purchase expenses. The second mortgage structure allows eligible buyers to access assistance while maintaining a defined repayment schedule.
The program terms include:
- A 15-year fixed-rate second mortgage
- A 2% interest rate
- Required repayment of the assistance amount
Because repayment is required, buyers should review the full financing structure with a participating lender to understand how the second mortgage fits into their overall monthly budget.
Key Numbers
- Maximum assistance: $8,000
- Interest rate: 2%
- Loan term: 15 years
- Assistance type: Second mortgage
- Repayment requirement: Yes
- Minimum assistance: Not publicly disclosed
- Credit score requirement: Not publicly disclosed
- Maximum household income: Not publicly disclosed
- Maximum purchase price: Not publicly disclosed
Eligibility Requirements
The West Virginia Housing Development Fund Low Down Home Loan has requirements designed to help eligible buyers access affordable home financing.
Requirements include:
- Property must be located in West Virginia.
- Income limits apply.
- Borrowers must not have had an ownership interest in their principal residence during the three-year period ending on the date the program loan closes.
- Homebuyer education or counseling may be required for certain loan types.
- Borrowers must work with a participating lender.
The provided program information does not specify a minimum credit score, first-time homebuyer requirement, or maximum household income amount.
Property Requirements
The available program details identify the following property requirements:
- Home location: West Virginia
- County eligibility: All
- Primary residence requirement: Not publicly disclosed
- Eligible property types: Not publicly disclosed
- Maximum purchase price: Not publicly disclosed
Additional property requirements may apply through WVHDF and the participating lender.
How the Process Works
- Contact a participating West Virginia Housing Development Fund lender.
- Review eligibility requirements, income limits, and financing options with the lender.
- Apply for the Low Down Home Loan assistance as part of the mortgage process.
- Complete any required homebuyer education or counseling requirements.
- Complete the purchase process using the approved financing and assistance.
Affordability Impact
The West Virginia Housing Development Fund Low Down Home Loan reduces the upfront cash required to purchase a home by providing up to $8,000 toward down payment and closing costs.
This program does not reduce the monthly payment. It reduces upfront cash required.
The second mortgage structure provides buyers with additional purchasing support while allowing them to repay the assistance over a fixed 15-year term.
Where This Fits in the Market
The West Virginia Housing Development Fund Low Down Home Loan fits within the broader category of state-sponsored down payment assistance programs that use secondary financing to help buyers overcome upfront purchase barriers.
Unlike forgivable assistance programs, this program requires repayment through a second mortgage. However, the fixed repayment structure and low 2% interest rate provide eligible buyers with a defined financing option that can help reduce the initial cash needed to purchase a home.
For West Virginia buyers who qualify, the program provides another pathway to managing the upfront costs associated with homeownership.
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