VMRP Term Sheet 1

12/11/21

Virginia Mortgage Relief Program

Consolidated Term Sheet

This Term Sheet contains the criteria and terms1for each of the three Virginia Housing Development 

Authority (Virginia Housing) program options under its Homeowner Assistance Fund (HAF) program, 

known as the Virginia Mortgage Relief Program (VMRP). This program is being supported, in whole or 

in part, by federal award number HAF-0092 awarded to the State of Virginia by the US Department of 

the Treasury (Treasury).

Virginia Housing opened a Pilot Program to homeowners with mortgage loans serviced by Virginia 

Housing in mid-July 2021. Upon approval of Virginia Housing’s VMRP Plan, which was submitted for 

approval to Treasury in mid-August 2021, the VMRP will become open to all eligible Virginia 

homeowners (including Virginia Housing loan servicing customers not participating in the Pilot Program). 

The terms of the Pilot program and at-large program are expected to be the same.

Criteria Terms

HAF Program Overview The HAF program was established under Section 3206 of the 

American Rescue Plan Act of 2021 to mitigate financial hardships 

associated with the coronavirus pandemic by providing funds to 

eligible entities, such as Virginia Housing, for the purpose of 

preventing homeowner mortgage delinquencies, defaults, 

foreclosures, and displacements of homeowners experiencing 

financial hardship after January 21, 2020, through qualified 

expenses related to mortgages and housing.

 

Description of VMRP 

Programs

Program Option #1: Reinstatement program. 

The reinstatement program option is a lump sum grant to bring 

eligible first and subordinate mortgage(s) expenses current up to 

the maximum VMRP per household assistance cap. 

 

1 Eligibility for VMRP assistance can only be determined upon a review of a completed VMRP 

application and all required supporting documentation. In the event of a conflict, the VMRP Plan and 

Virginia Housing’s VMRP policies and procedures, both as may be updated from time to time, will 

control. This Term Sheet is subject to being supplemented or otherwise amended at any time.
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Criteria Terms

This option will be provided to homeowners whose housing 

expense to income ratio (HTI) is documented to be equal to or 

less than 40%. 

This option provides funds to eliminate past due mortgage 

payments and other eligible housing expenses.

Notes: 

(1) If the Maximum Per Household VMRP Assistance is not 

sufficient to fully reinstate, eligible homeowners must 

demonstrate sufficient other funds to fully reinstate or 

document an approved loss mitigation plan with their loan 

servicer regarding such shortfall, satisfactory to Virginia 

Housing. If the applicant is unable to reinstate the shortfall 

or come to a loss mitigation agreement with his or her loan 

servicer regarding such a shortfall, the applicant is ineligible 

for VMRP Assistance.

(2) Applicants in a forbearance plan at the time of their VMRP 

application may be eligible. However, amounts owed due to

applicant previously receiving a Partial Claim, Deferment, 

or some other form of Loss Mitigation assistance, are not 

typically eligible expenses unless applicant’s delinquency is 

due to a qualified hardship as a result of COVID-19 

occurring subsequent to the loss mitigation assistance. 

Program Option #2: Reinstatement plus monthly housing 

assistance.

The reinstatement plus monthly housing assistance program

option is a lump sum grant to bring eligible first and subordinate 

mortgage(s) current (Program Option #1) plus make future 

monthly payments of eligible housing expenses until the 

qualified financial hardship has been removed, the 

homeowner(s) become eligible for other loss mitigation options 

with the current servicer, or until the maximum per household 

VMRP assistance has been exhausted, whichever happens first. 

This option will be provided to homeowners receiving mortgage 

reinstatement assistance whose HTI is greater than 40%. 

Requires re-certification of income and hardship every 90 days 

that the payment is ongoing.
VMRP Term Sheet 3

12/11/21

Criteria Terms

Program Option #3: Assistance with Eligible Housing 

Expenses.

The assistance with eligible housing expenses program option is 

for homeowners with no mortgage or homeowners with 

delinquent eligible expenses that are not escrowed with their 

mortgage servicer. Such homeowners may still be eligible for 

payment of other delinquent eligible housing expenses under 

this VMRP program option.

Overview of Eligibility 

Criteria

The basic VMRP eligibility requirements (as further discussed in

this Term Sheet) are as follows:

(i) Homeowners must be an eligible applicant entity type;

(ii) Homeowners must have experienced a qualified

financial hardship;

(iii) Home must be an eligible property type and be located

in Virginia;

(iv) Home must be owned and occupied as homeowners’

primary residence;

(v) Applicant’s household income must be below certain

maximum income restrictions;

(vi) Assistance sought must be for a delinquent eligible

housing expense that became due on or after January

21, 2020;

(vii) Certain maximum limits cannot be exceeded for: (a)

mortgage amount (original outstanding principal

balance), or (b) in cases where there is no mortgage, the

assessed value of the dwelling and land;

(viii) If mortgage payment assistance is sought, the mortgage

must be an eligible mortgage type;

(ix) Assistance cannot exceed the maximum VMRP per

household assistance cap;

(x) The VMRP assistance may not duplicate any other

federal, state or local housing assistance received by

homeowner for the same expenses paid for by VMRP;

and

(xi) For the VMRP Pilot program, homeowners must have

a mortgage loan serviced by Virginia Housing.

Eligible Applicant Entity 

Type

Applicant must be a “natural person” (i.e., LLP, LP or LLC do not 

qualify). A homeowner that has transferred their ownership right 

into non-incorporated, Living Trusts, may be eligible provided the 

homeowner occupies the home as the primary residence. Heirs, 
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12/11/21

Criteria Terms

Bankruptcy

Citizenship

equitable owners, and successors-in-interest, as that term is defined 

in Section 1024.31 of Title 12 of the Code of Federal Regulations, 

may be eligible.

Homeowner(s) who have previously filed for bankruptcy but who 

are no longer in bankruptcy must provide proof of a court ordered 

“discharge” or “dismissal”. Active Chapter 13 bankruptcies must 

provide proof of court approval to participate in the program.

US Citizenship is not required, but there are documentation 

requirements related to eligibility of non-citizens.

Qualified Financial Hardship A qualified financial hardship means a material reduction in

income or material increase in living expenses associated with the

coronavirus pandemic that has created or increased a risk of

mortgage delinquency, mortgage default or foreclosure occurring

on or after January 21, 2020.

Eligible Property Type Eligible property types are the following dwellings: single-family 

single unit attached or detached homes, condominium, 

cooperative, mobile or manufactured homes (both affixed and 

unaffixed to land) which are habitable structures (not condemned 

or having suffered material damage).

Note that 2-4 unit properties and mixed-use properties are not

eligible for VMRP. 

Property must be located in Virginia.

Primary Residence The home must be the homeowner’s primary residence. Second 

homes and vacation homes are not eligible.

Maximum Income 

Restrictions

Consistent with Treasury guidance, the VMRP is prioritizing the

following for eligibility: (1) homeowners with household incomes

at or below 100% of the applicable area median income (AMI), or

national median income, whichever is greater, and (2) socially

disadvantaged individuals, as defined by Treasury, with household

incomes equal to or less than 150% of the AMI or 100% of the 

national median income, whichever is greater.

Income limits specific to the HAF program have been published 

by HUD and can be found at: 

https://www.huduser.gov/portal/datasets/haf-il.html.

Treasury’s definition of socially disadvantaged individual can be

found here:

https://home.treasury.gov/system/files/136/HAF-Guidance.pdf
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12/11/21

Criteria Terms

Eligible Housing Expenses Eligible housing expenses must have become due on or after

January 21, 2020, and be one of the following:

 Existing first mortgage lien loan payment PITI, escrow 

shortages, servicer corporate advances.

 Subordinate mortgage lien payment (principal and interest) 

and/or installment payment of government bond second 

lien for down payment assistance (such as Virginia 

Housing second deeds of trust for down payment).

 Reasonable legal fees of the servicer or other payee

associated with delinquency of eligible expenses.

 Attached or unattached manufactured/mobile home loan 

monthly payment (principal and interest). 

 Personal property tax on unattached manufactured/mobile 

homes. 

 If home loan monthly payment and/or personal property tax 

are being paid on an unattached manufactured/mobile 

home, lot rent may also be paid. However, applications for 

lot rent only are not eligible under HAF but may be under 

the Virginia Rent Relief Program (RRP).

 Homeowner’s association fees, condominium association 

fees and special assessments, cooperative maintenance 

fees, or common charges, including for a lien 

extinguishment.

 Homeowner’s hazard and other property insurance, flood, 

and/or mortgage insurance.

 Delinquent real estate property taxes.

However, amounts owed due to applicant previously receiving a 

Partial Claim, Deferment, or some other form of Loss Mitigation 

assistance, are not typically eligible expenses unless applicant’s 

delinquency is due to a qualified hardship as a result of COVID-19 

occurring subsequent to the loss mitigation assistance.

Maximum Eligible Mortgage 

Amount 

Maximum Property Value

The following, as applicable, must be met:

(a) if mortgage payment assistance is sought, the original

outstanding principal balance of the mortgage must have been less

than applicable conforming loan limits at the time of loan

origination; or

(b) if no mortgage, the current assessed value of the land and

dwelling (as determined by the locality’s assessor’s office) must

be less than the current conforming loan limit.
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12/11/21

Criteria Terms

Eligible Mortgage Type Eligible mortgage type means any credit transaction that is secured 

by a mortgage, deed of trust, or other consensual security interest 

on a principal residence of a borrower for an eligible property type. 

This includes federally backed, conventional, private, and reverse 

mortgages. It also includes a loan secured by a manufactured or 

mobile home (both affixed or unaffixed to land), or a contract for 

deed (also known as a land contract). 

As stated above, the original outstanding principal balance of the 

homeowner’s first mortgage must have been, at the time of 

origination, not greater than the Fannie Mae/Freddie Mac 

conforming loan limit (CLL) in effect at the time of origination. 

Accordingly, “jumbo” mortgages are not eligible. 

VMRP Per Household 

Assistance Cap

Assistance is limited to a maximum of the lesser of: (a) 20 months

of eligible housing expenses, or (b) $30,000 per household.

Form of VMRP Assistance Assistance will be structured as a non-recourse grant, recoverable 

in the event of fraud or overpayment. 

Applicant must certify in the application that they are not also 

participating in any other federal, state, or local payment assistance 

program that is duplicative of VMRP.

Payment Method Virginia Housing or its agent will disburse VMRP assistance 

directly to the mortgage lender/servicer, contract for deed holder, 

county treasurer or local taxing authority, hazard insurance 

company, and/or homeowners’/condominium association, as 

appropriate. 

Payments will not be made directly to homeowners.

Length of VMRP The VMRP will continue until the earlier of: (i) September 30, 

2026, or (ii) when all of the funds allotted to the Commonwealth 

of Virginia have been exhausted.

Additional Information The full VMRP Plan, additional program information and FAQs 

are available at www.VirginiaMortgageRelief.com. Interested 

parties may also contact the VMRP Customer Center on Monday 

through Friday from 8 AM to 8 PM ET at 833-OUR-VMRP (833-

687-8677) or send an e-mail to: help@virginiamortgagerelief.com.
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12/11/21