Virginia is one of the few states that offers genuine first-time buyer grants — money you truly never repay — toward both the down payment and closing costs.
This guide covers what actually counts as grant money for first-time buyers in Virginia in 2026 — the help that does not have to be repaid, the truth about the federal grant everyone asks about, and how to find and qualify for it.
Are there really first-time home buyer grants in Virginia?
Here is the honest answer most sites skip: a true grant is money you never repay, but the majority of what gets marketed as a “first-time home buyer grant” is actually a forgivable loan — a second mortgage that is written off over time as long as you stay in the home. The practical difference is small if you plan to stay put, but it matters if you might sell or refinance early. Virginia is a standout: unlike most states, it offers true grants (no repayment, no lien) for the down payment and closing costs, not just forgivable loans.
For the full difference between grants, forgivable seconds, and deferred loans, our national guide to down payment assistance breaks it down.
Virginia grant and forgivable-money programs
Here is Virginia’s genuine grant money:
- Virginia Housing Down Payment Assistance Grant — 2% (sometimes up to 2.5%) of the purchase price as a true grant — no repayment, no second lien
- Closing Cost Assistance (CCA) Grant — up to 2% of the price toward closing costs for VA and USDA loans, also a true grant
- Plus Second Mortgage — 3%–5% of the price for buyers who need more — note this one is a repayable second, not a grant (minimum credit score around 680)
This page focuses on the no-repay and forgivable money. For the full menu — including deferred loans, below-market mortgages, and the Mortgage Credit Certificate — see our complete guide to Virginia first-time home buyer programs.
The $25,000 first-time buyer grant — is it real?
You have probably seen ads for a “$25,000 first-time home buyer grant” or a “$15,000 first-time buyer tax credit.” Here is the truth as of 2026: both come from proposed federal bills (the Downpayment Toward Equity Act and the First-Time Homebuyer Tax Credit Act) that have not become law. No one can give you that $25,000 federal grant today, in Virginia or anywhere else, because it does not exist yet — so be cautious with any site or “lender” that promises it. We track the real status on our explainer of the $25,000 first-time home buyer grant. The good news: the Virginia programs above are real, available now, and often just as valuable.
How to qualify for a grant in Virginia
Grant and forgivable programs in Virginia share a familiar set of rules:
- Income limits. Virginia Housing sets household income limits by locality and metro area.
- First-time status. First-time status is required for the grants (or buying in a targeted area); some loans allow repeat buyers.
- Homebuyer education. Nearly every grant program requires a short course, usually free and often online.
- A participating lender. Grants are delivered through approved lenders, not the agency directly, so ask which programs a lender offers — and check our guide to credit score requirements to be sure you qualify for the underlying loan.
- Primary residence. The home must be the one you live in, not an investment property.
How to find down payment grants in Virginia
Virginia genuinely offers grants, so ask a Virginia Housing lender specifically about the DPA and CCA grants. One note: Virginia Housing’s Mortgage Credit Certificate has been suspended to new applicants since 2023.
And before you count on any figure, remember that grant funding runs in cycles and can be exhausted, so always confirm current availability with the program. Our first-time home buyer checklist keeps the rest of your purchase on track.
Virginia first-time buyer grants FAQ
Do first-time home buyer grants in Virginia have to be repaid?
This is where Virginia stands out — its Down Payment Assistance Grant (2–2.5%) and Closing Cost Assistance Grant (up to 2%) are true grants with no repayment and no lien. Only the optional Plus Second Mortgage is a repayable loan. That makes Virginia one of the best states for genuine grant money.
Is there a $25,000 grant for first-time buyers in Virginia?
Not currently. The $25,000 figure comes from a proposed federal bill (the Downpayment Toward Equity Act) that has not become law, so it is not available in Virginia or any state today. What is available are Virginia’s real grant and forgivable programs described above, plus the statewide options in our Virginia programs guide.
Who qualifies for down payment grants in Virginia?
First-time status is required for the grants (or buying in a targeted area); some loans allow repeat buyers. Virginia Housing sets household income limits by locality and metro area. You will also complete a homebuyer education course and use a participating lender.
Does Virginia really give down payment money you don’t repay?
Yes. Virginia Housing’s Down Payment Assistance Grant provides 2% (sometimes up to 2.5%) of the purchase price as a genuine grant — there is no repayment and no second lien recorded against your home. Buyers using VA or USDA financing can add a separate closing-cost grant of up to 2%. Both require first-time status (or a targeted area), income within the locality limits, and completion of Virginia Housing’s free homebuyer class. Confirm current percentages with a Virginia Housing lender.