HOME FINANCING · VA

Home Financing Guide for Alexandria City, Virginia

Buying a home in Alexandria City, Virginia is within reach for solo contractors, first-time buyers, and immigrant families — including those without a Social Security number. This guide walks you through what home financing looks like locally, who qualifies, which Alexandria-area lenders and nonprofits can help, and how to protect yourself from predatory offers. Take your time, ask questions, and lean on the local organizations listed here — they exist to help you succeed.

§ 01 — What it is

What Is Home Financing?

Home financing means borrowing money to purchase a residential property — a house, condo, townhome, or small multi-unit building — and repaying it over time with interest. The loan is secured by the property itself, meaning the lender can take the home if payments stop. The most common type is a mortgage, which typically runs 15 or 30 years. There are several flavors worth knowing: • **Conventional loans** — offered by banks and credit unions, usually require a credit score of 620 or higher and a down payment of 3–20%. • **FHA loans** — backed by the federal government, accept credit scores as low as 580 and down payments as low as 3.5%. Popular with first-time buyers. • **VA loans** — for active military, veterans, and eligible surviving spouses. No down payment required. Strong option if you qualify. • **USDA loans** — for rural and some suburban areas. Most of Alexandria City does not qualify geographically, but neighboring jurisdictions might. • **ITIN loans** — for buyers who have an Individual Taxpayer Identification Number instead of a Social Security number. Several local lenders in the Alexandria area offer these. • **Down Payment Assistance (DPA) programs** — Virginia and Alexandria City both run programs that layer on top of a mortgage to help cover upfront costs. Alexandria City is part of Northern Virginia's dense, high-cost housing market, so home prices tend to run higher than the state average. That makes local assistance programs especially important.

§ 02 — Who qualifies

Who Qualifies — and How Alexandria's Economy Shapes Eligibility

Alexandria City's workforce is diverse — federal contractors, hospitality workers, healthcare staff, independent tradespeople, restaurant owners, and small real-estate investors all call it home. Each situation has a different path to financing. **Salaried employees** typically have the easiest time: two years of W-2s, steady pay stubs, and a credit history usually meet conventional or FHA requirements. **Solo contractors and self-employed workers** — a large share of Alexandria's construction, landscaping, and service trades — need to show two years of self-employment tax returns (Schedule C or Schedule SE), profit-and-loss statements, and sometimes bank statements. Some lenders offer **bank statement loans** for self-employed borrowers who can show 12–24 months of consistent deposits even if their taxable income looks low on paper. **ITIN holders** — many of Alexandria's immigrant residents pay taxes with an ITIN rather than an SSN. Several lenders in the region offer ITIN mortgage products. You will need a longer documented history of on-time rent payments, utility bills, and possibly a higher down payment (often 10–20%), but homeownership is absolutely possible. **Small real-estate investors** buying 2–4 unit properties can use rental income from the other units to help qualify, which is a smart strategy in Alexandria's rental-heavy market. **Income limits** apply to many assistance programs. For Alexandria City, most DPA and affordable-homeownership programs set limits at 80% or 100% of Area Median Income (AMI). Given Northern Virginia's high AMI, moderate-income households often still qualify.

§ 03 — What you need

Documents You Will Typically Need

Gathering your paperwork early saves time and reduces stress. Here is what most lenders will ask for: **Identity & Residency** - Government-issued photo ID (passport, driver's license, consular ID / matrícula consular) - Social Security number OR ITIN letter from the IRS - Immigration documents if applicable (green card, visa, EAD) **Income Verification** - Last 2 years of federal tax returns (all pages, all schedules) - Last 2 years of W-2s or 1099s - Most recent 30 days of pay stubs (if employed) - If self-employed: 2 years of business tax returns, a current profit-and-loss statement, and 12–24 months of bank statements - Award letters for Social Security, disability, or pension income **Assets** - Last 2–3 months of bank and investment account statements - Documentation of any gift funds (a gift letter is required by most lenders) **Credit & Debt** - Lenders will pull your credit report themselves, but know your approximate score going in - List of current monthly debts: car payments, student loans, credit cards, child support **Property** - Once you are under contract: signed purchase agreement, property address, and HOA documents if applicable **Tip for ITIN borrowers:** Bring 12–24 months of rent payment records (canceled checks, money order receipts, or a landlord letter), utility bills, and any evidence of on-time installment payments. This alternative credit history matters a great deal.

§ 04 — Where to start in Alexandria City

Local Lenders, CDFIs, Credit Unions, and ITIN-Friendly Resources in Alexandria City

Alexandria City sits in one of the most resource-rich corridors in Virginia. Here are the local and regional organizations most likely to help you: **Virginia Housing (formerly VHDA)** Virginia's state housing finance agency offers below-market mortgage rates, down payment assistance grants, and the Mortgage Credit Certificate (MCC) tax credit. Their loans are delivered through approved local lenders — ask any Alexandria-area lender if they are a Virginia Housing partner. **Alexandria Housing Development Corporation (AHDC)** AHDC is Alexandria's primary affordable-housing nonprofit. They operate the Alexandria Affordable Housing Opportunities program and can connect buyers to down payment and closing cost assistance. Start here if you are a first-time buyer in the city. Website: ahdc.us **Neighborhood Housing Services of Northern Virginia (NHS)** NHS offers homebuyer education classes (required for most DPA programs), one-on-one counseling in English and Spanish, and connections to affordable loan products. HUD-approved. **Virginia Community Capital (VCC)** A Virginia CDFI that funds community development projects and works with underserved borrowers across the state, including Northern Virginia. **Latino Economic Development Center (LEDC) — Washington DC Metro Area** LEDC serves the Alexandria–Arlington–DC corridor and has deep experience with ITIN mortgage products, self-employed borrowers, and first-generation homebuyers. They offer financial coaching, loan preparation, and referrals to ITIN-friendly lenders. Bilingual staff. Website: ledcmetro.org **Congressional Federal Credit Union / Justice Federal Credit Union / State Department Federal Credit Union** Several federal credit unions are headquartered in or near Alexandria and serve the large federal-workforce community. Credit unions often have more flexible underwriting than big banks. **Burke & Herbert Bank** A community bank headquartered in Alexandria with deep local roots. Known for personalized service and portfolio lending, which can help borrowers who do not fit standard guidelines. **MainStreet Bankshares / Cardinal Bank (now United Bank)** Regional community lenders active in Northern Virginia with local decision-making authority. **SBA Richmond District Office (serving Northern Virginia)** If you are a self-employed contractor or small-business owner, the SBA's 504 or 7(a) programs are not for home purchases — but they can help stabilize your business finances, which strengthens your mortgage application later. The Richmond District Office covers Alexandria. Phone: (804) 771-2400 **ITIN-Friendly Mortgage Lenders (Regional)** Several lenders active in the DC metro area offer dedicated ITIN loan programs: Interbank Mortgage, Quontic Bank, and some local credit unions. LEDC (above) can provide current referrals since this market changes frequently.

§ 05 — What to avoid

Virginia State-Specific Regulatory Notes

Virginia has its own rules that affect home financing. Here is what Alexandria City buyers should know: **Virginia Housing Down Payment Assistance** Virginia Housing offers two DPA options: a grant (does not need to be repaid) and a second mortgage (repaid when you sell or refinance). The grant is 2–2.5% of the purchase price. Income and purchase price limits apply — check Virginia Housing's website or ask an approved lender. **Mortgage Credit Certificate (MCC)** The MCC converts a portion of your annual mortgage interest into a federal tax credit — potentially saving thousands per year. It is issued by Virginia Housing and must be obtained at the time of purchase, not after closing. First-time buyers and certain veterans qualify. **Alexandria City's Affordable Homeownership Program** Alexandria operates its own local assistance through AHDC, sometimes offering forgivable second mortgages for income-qualifying buyers purchasing within city limits. Funds are limited and awarded on a first-come, first-served basis — apply early. **Virginia Homeownership Counseling** Most Virginia DPA programs require completion of a HUD-approved homebuyer education course. NHS of Northern Virginia and LEDC both offer eligible courses. Budget 6–8 hours for the online version. **Virginia Predatory Lending Law** Virginia's Consumer Protection Act and the Virginia Fairness in Lending Act provide some protections against predatory mortgage terms. The Virginia State Corporation Commission (SCC) licenses and regulates mortgage lenders and brokers. You can verify any lender's license at scc.virginia.gov. **Recordation and Transfer Taxes** In Virginia, the buyer typically pays a recordation tax (roughly 0.25% of the loan amount) and a grantor's tax is paid by the seller (0.1% of the sale price). Alexandria City may also charge a city-level transfer fee — confirm with your title company. **Real Estate Agent Representation** Virginia requires buyer's agents to provide a written disclosure of representation before showing homes. You are entitled to your own agent who represents only your interests — this costs you nothing, as the seller typically pays both agents' commissions.

§ 06 — Ask a question

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