{"data":{"id":"us-va/13vac10-40-120","jurisdiction":"us-va","citation":"13VAC10-40-120","heading":"Mortgage insurance requirements","body":"A. Unless the loan is an FHA, VA, or Rural Development loan,  all borrowers are required to purchase at time of loan closing  private mortgage insurance  in such amount as required by the applicable investor or such other amount as required by the executive director. Such insurance shall be issued by a company acceptable to the authority. The originating  lender is required to escrow for annual payment of mortgage insurance, unless an alternative payment plan is approved by the authority. If the authority requires FHA, VA, or Rural Development insurance or guarantee, the loan will  be closed in the originating  lender's name and purchased by the authority once the FHA Certificate of Insurance, VA Guaranty, or Rural Development Guarantee has been obtained. For assumptions of conventional loans (i.e., loans other than FHA, VA, or Rural Development loans),  private mortgage insurance as described  in this subsection is required unless waived by the authority.\n\nB. The executive director may waive the requirements for private mortgage insurance in  subsection A of this section for a loan having a principal amount in excess of 80% of the lesser of sales price or appraised value of the property to be financed if  the executive director otherwise determines that the financial integrity of the program is protected by the financial strength of  an applicant  or the terms of the financing.\n\nC. If the executive director determines it to be necessary to protect the authority's financial interests, the executive director may require that the company issuing such private mortgage insurance have a Moody's Investors Service Insurance Financial Strength rating not lower than Aa3 or a Standard \u0026 Poor's Ratings Services Financial Strength rating not lower than AA-.","path":["Title 13. Housing","Agency 10. Virginia Housing Development Authority","Chapter 40. Rules and Regulations for Single Family Mortgage Loans to Persons and Families of Low and Moderate Income","Part II. Program Requirements"],"source_url":"https://law.lis.virginia.gov/admincode/title13/agency10/chapter40/section120/","current_through":"2026 Regular Session (effective July 1, 2026)","vintage":"","retrieved_at":"2026-09-14T04:51:45Z","sha256":"4a8ad8f3955ad5cecd16859b064cc34e3d5cea390e187c944093ffa784695002","source_id":"us-va-vac","stale":false,"prev":"us-va/13vac10-40-110","next":"us-va/13vac10-40-130"},"notice":"GroundRules: Original legal text. Not legal advice."}