Virginia is one of the few states offering genuine grants — money you never repay under any circumstances — and it now has three of them, including a $10,000 program launched at the end of 2025 that barely appears in consumer coverage.
It also has a product routinely miscounted as assistance when it is actually a second mortgage with monthly payments. Sorting those apart is the whole game in Virginia.
The three true grants
All three come from Virginia Housing, the state HFA, and all require one of its bond first mortgages.
Down Payment Assistance (DPA) Grant
2.0% of the purchase price with a conventional bond loan, 2.5% with an FHA bond loan. Virginia Housing’s guidelines state it verbatim: no repayment is required, and it is described as a gift, not a loan. No lien, no note, no forgiveness clock.
First-time buyers only, unless purchasing in an Area of Economic Opportunity.
Closing Cost Assistance (CCA) Grant
Up to 2% of the purchase price, and also a true grant. This one is for USDA or VA bond loans only — the mirror image of the DPA Grant, which covers FHA and conventional. You take one or the other, never both.
For a VA borrower putting zero down, this is the right product: your problem is closing costs, not the down payment.
Community Heroes Grant — $10,000, and newly available
Virginia Housing describes this as a $10,000 grant, not a loan, with no repayment required. Reservations opened December 11, 2025.
Eligible professions are broad: educators and school personnel, childcare workers, law enforcement, firefighters and first responders, healthcare workers, active-duty military and veterans, Coast Guard, National Guard and Reservists — and retirees of any eligible profession.
It stacks with the Plus Second Mortgage, the DPA Grant, or the CCA Grant. One catch: when paired with the DPA or CCA grant, the lower grant income limits govern.
Worth knowing that this currently appears mainly on Virginia Housing’s partner and lender pages rather than the main consumer page — so it is real and reservable, but easy for a lender to overlook. Ask about it by name.
The Plus Second Mortgage is not assistance
This is where most Virginia guides mislead. The Plus Second Mortgage is a 30-year fully amortizing second mortgage with a monthly payment — not a grant, not deferred.
- FHA or FHA Bond: 3.5%, or 5.0% at a 680 score.
- Conventional or Conventional Bond: 3.0%, or 4.5% at a 680 score.
- Rate is your first mortgage rate plus 0.25% on FHA or plus 0.125% on conventional.
- Borrowers at 680 and above may borrow an additional 1.5% above the purchase price for closing costs.
It is available to first-time and repeat buyers and uses the Expanded income limits, so it reaches households who earn too much for the grants. That makes it genuinely useful — but a buyer taking a 5% Plus Second has two mortgage payments from day one.
Listing “up to 5% down payment assistance” alongside a 2.5% true grant in a comparison table is the single most misleading thing published about Virginia.
Three income tiers — the cheaper the money, the tighter the test
Limits effective August 1, 2026. This structure is the thing to understand:
Grant limits (DPA and CCA) — the tightest
- Washington/Arlington/Alexandria: $148,000 for two or fewer, $174,000 for three or more; sales price $800,000.
- Richmond: $96,000 / $110,000; $550,000.
- Virginia Beach/Norfolk/Newport News: $97,000 / $113,000; $575,000.
- All other areas: $90,000 / $103,000; $500,000.
Standard bond limits (first mortgage without a grant)
- Washington/Arlington/Alexandria: $186,000 / $217,000.
- Richmond: $120,000 / $138,000.
- Virginia Beach/Norfolk/Newport News: $121,000 / $141,000.
- All other areas: $112,000 / $129,000.
Expanded limits (used with the Plus Second, first-time and repeat)
- Washington/Arlington/Alexandria: $245,000, with no sales price limit.
- Richmond and all other areas: $175,000.
Worked through: a Richmond household earning $115,000 can get a Virginia Housing bond loan but cannot get the 2.5% grant, because the grant caps at $96,000 or $110,000. At $150,000 they lose the bond loan too and are left with the Plus Second under the $175,000 expanded limit.
The separate $40,000 program — and its cliff
Virginia’s Department of Housing and Community Development runs a completely separate HOME-funded program, delivered through regional providers rather than lenders.
- Up to 10% of the sales price, or 15% in 39 designated high-cost localities including Alexandria, Arlington, Fairfax, Loudoun, Charlottesville and Winchester.
- Plus up to $2,500 toward closing costs, with a hard cap of $40,000 total.
- Income at or below 80% of area median — far below Virginia Housing’s grant limits.
- Minimum 620 median FICO with at least three active trade lines; HUD-certified education required before closing.
- Your contribution: 1% of sales price at 50–80% AMI, or $500 below 50% AMI.
The structure is a cliff, and a harsh one. It is a 0% deferred loan secured by a deed of trust, forgiven at the end of the affordability period: five years for assistance of $1,000–$14,999, ten years for $15,000–$40,000. There is no prorated annual forgiveness. A buyer with $40,000 who moves in year nine owes the full $40,000.
DHCD also runs a deeper pilot — $20,000 to $50,000 for households at or below 60% AMI, with genuine straight-line forgiveness at 1/15 per year. But its published guidelines are the 2025 edition and no 2026 round has been posted, so treat current availability as unconfirmed and ask a regional provider.
A first-generation program that just closed
Virginia Housing’s FirstHome Dream Program is discontinued, closed for reservations on June 30, 2026.
It was not down payment assistance — it was an interest rate reduction of two percentage points below Virginia Housing’s posted rate, for first-generation buyers, delivered alongside HUD-approved counseling. It was piloted in Richmond, expanded statewide in January 2026, and shut down six months later.
The statewide launch generated considerable coverage; the closure generated almost none. Virginia now has no state first-generation program. If you find a page promoting FirstHome Dream, it is out of date.
On credit: Virginia Housing requires a 620 minimum with no exceptions on FHA Bond, 640 conventional, and 660 for Conventional No-MI. Maximum DTI is 50% with automated approval. Homebuyer education is required for all first-time buyers, and the certificate is valid for two years — longer than most states.
How to sequence it
- Ask about the Community Heroes Grant by name. $10,000 that is never repaid is the best money in Virginia, the eligible profession list is broad, and it stacks with the other grants.
- If you are using a VA or USDA loan, take the Closing Cost Assistance Grant rather than the DPA Grant — it matches where your actual cash need is.
- Check your income against the grant tier first, not the standard tier. The grants cut off far lower and that is what decides whether you get free money.
- If your income is above the grant limits, understand that the Plus Second is a real second mortgage with a monthly payment, not assistance.
- If your income is at or below 80% AMI, contact a DHCD regional provider about the $40,000 program — but understand the five or ten year cliff before committing.
Frequently asked questions
Does Virginia offer true down payment grants?
Yes — three of them. The DPA Grant (2% conventional, 2.5% FHA), the Closing Cost Assistance Grant (up to 2%, for VA and USDA loans), and the Community Heroes Grant ($10,000, launched December 2025). Virginia Housing states plainly that none require repayment.
What is the Virginia Community Heroes Grant?
A $10,000 grant with no repayment required, available since December 2025 to educators and school personnel, childcare workers, law enforcement, firefighters and first responders, healthcare workers, military and veterans — including retirees of those professions. It stacks with the other Virginia Housing grants and the Plus Second Mortgage.
Is the Virginia Housing Plus Second Mortgage down payment assistance?
No. It is a 30-year fully amortizing second mortgage with monthly payments, at your first mortgage rate plus 0.25% on FHA or 0.125% on conventional. It is a financing tool, not assistance, and it should not be compared directly against the true grants.
How much can I get from Virginia’s DHCD program?
Up to 10% of the sales price, or 15% in 39 designated high-cost localities, plus $2,500 in closing costs, capped at $40,000. It requires income at or below 80% of area median and is forgiven only at the end of a five-year (under $15,000) or ten-year ($15,000–$40,000) cliff.
Is FirstHome Dream still available in Virginia?
No. Virginia Housing discontinued FirstHome Dream, with reservations closing June 30, 2026 — just six months after its statewide expansion. Virginia currently has no state first-generation homebuyer program.
Why do I qualify for a Virginia Housing loan but not the grant?
Virginia uses three income tiers, and the grants have the tightest limits. In Richmond, for example, the grant caps at $96,000 for two or fewer people while the standard bond loan allows $120,000. Earning between those figures qualifies you for the loan but not the free money.