Richmond is one of the more workable markets on the East Coast for a first-time buyer — the city median sits around $375,000, well below Northern Virginia and within reach of the state’s assistance programs. The trick in Richmond is knowing that most of the help comes from the state rather than the city.
Here is what is actually available, what it costs you back, and which programs are worth the paperwork.
The Richmond market right now
Zillow puts the city of Richmond’s typical home value around $374,985 as of mid-2026, up about 1% year over year, with a median sale price near $373,250. Homes go pending in roughly a week and close to half sell above list, so you want financing lined up before you shop.
One caution when researching prices: sources draw Richmond’s boundaries differently. Redfin reports a materially higher median (around $429,766) because of how it defines the area. Use the city figure when budgeting for a home inside city limits.
Virginia Housing — the programs most Richmond buyers use
Virginia Housing is the state housing finance agency, and its products are where most Richmond first-time buyers actually get help. There are three, and the differences matter enormously.
Down Payment Assistance Grant — real free money
This is a true grant. You never repay it. It is worth 2% of the sales price with a Virginia Housing bond conventional loan, or 2.5% with a bond FHA loan. You must use a Virginia Housing first mortgage. Open to first-time buyers, and to repeat buyers purchasing in an Area of Economic Opportunity.
Closing Cost Assistance Grant — also a true grant
A separate grant for first-time buyers using VA or USDA bond loans. If you are using a VA loan and putting nothing down, this is usually the more useful of the two, since your problem is closing costs rather than down payment.
Plus Second Mortgage — read this one carefully
Despite often being lumped in with the grants, the Plus Second Mortgage is a fully amortizing 30-year second loan you repay with monthly payments. It is explicitly not deferred. It covers up to 5% with an FHA first (at a 680 score) or up to 4.5% conventional, at a rate above your first mortgage — plus 0.25% on FHA, plus 0.125% on conventional. A legitimate tool if you have no down payment, but it is a second monthly payment, not assistance in the way most people mean.
Income and price limits for the Richmond area
For applications on or after August 1, 2026, Virginia Housing’s Richmond MSA limits are:
- DPA and Closing Cost Grants: income up to $96,000 for one or two people, $110,000 for three or more; sales price up to $550,000.
- Standard (bond) loans: income up to $120,000 for one or two people, $138,000 for three or more; same $550,000 price cap.
- Expanded (non-bond, used with the Plus Second Mortgage): income up to $175,000 regardless of household size, with no state price ceiling.
First-time buyer here means you have not owned and occupied a primary residence in the last three years. Homebuyer education is required, and the certificate stays valid for two years.
The statewide forgivable loan — the biggest dollar amount available
Virginia’s Department of Housing and Community Development runs a HOME-funded down payment assistance program delivered locally by HUD-certified counseling agencies. It is the largest assistance figure a Richmond buyer is likely to access.
- Up to 10% of the sales price (15% in designated high-cost or economically distressed localities), plus $2,500 toward closing costs, to a maximum of $40,000.
- Structured as a deferred forgivable loan, not a grant. Assistance of $1,000–$14,999 carries a five-year affordability period; $15,000–$40,000 carries ten years. Stay the full period and the subsidy is forgiven entirely.
- Income must be at or below 80% of area median, by household size.
- You contribute 1% of the sales price with receipts if you are between 50% and 80% AMI, or a minimum of $500 below 50% AMI.
- HUD-certified housing counseling is required.
In the Richmond region this is delivered through Housing Opportunities Made Equal of Virginia (HOME Inc.), serving Richmond City, Henrico, Chesterfield and surrounding localities. They do not publish a fixed award amount — it is sized to your situation — so call (804) 354-0641 before assuming a number.
City and county programs
The City of Richmond does not appear to run its own retail down payment assistance product; it channels federal HOME and CDBG money through nonprofit partners instead. There is one notable exception.
City of Richmond employees
If you work full-time for the City with twelve months of continuous permanent employment, there is a dedicated employee homebuyer assistance program administered by HOME of VA. Income cap $175,000, price cap $550,000, property inside city limits. The exact assistance amount is not published publicly — get specifics from City HR.
Henrico County
If your search extends into Henrico, the county runs a first-time homebuyer down payment and closing cost program structured as a deferred forgivable loan, delivered through HOME Inc. and Southside Community Development & Housing Corporation. Amounts are not published; call (804) 231-4449.
Worth knowing: RRHA’s older HOPE VI forgivable second mortgage program is listed as discontinued. If an aggregator site references it, that listing is out of date.
How to actually approach this
- Complete a homebuyer education course early — nearly every program requires it, and the Virginia Housing certificate is good for two years.
- Talk to HOME Inc. about the DHCD forgivable loan first. It is the largest amount available and locally delivered, so availability is a real question worth asking up front.
- Get pre-approved with a Virginia Housing participating lender, and ask specifically whether you qualify for the DPA Grant (2–2.5%, never repaid) rather than defaulting to the Plus Second Mortgage.
- If you work for the City, ask HR about the employee program before you shop.
- Confirm current income limits at application — Virginia Housing updates them annually, most recently effective August 1, 2026.
Frequently asked questions
Does Richmond have a first-time home buyer program?
The City of Richmond does not run its own general down payment assistance program, but Richmond buyers can use Virginia Housing’s statewide DPA Grant (2–2.5% of the sales price, never repaid) and the DHCD forgivable loan of up to $40,000, delivered locally by HOME of Virginia. City employees have a separate dedicated program.
How much down payment help can I get in Richmond?
The largest single amount is the statewide DHCD program at up to 10% of the sales price (15% in some localities) plus $2,500 in closing costs, capped at $40,000. Virginia Housing’s grants add 2–2.5% of the sales price on top, and those never have to be repaid.
Is Virginia Housing down payment assistance a grant or a loan?
Both exist, and the distinction matters. The Down Payment Assistance Grant and Closing Cost Assistance Grant are true grants you never repay. The Plus Second Mortgage is a fully amortizing 30-year second loan with monthly payments at a rate above your first mortgage.
What are the income limits for Richmond first-time buyer programs?
For Virginia Housing grants in the Richmond MSA (effective August 2026), income can reach $96,000 for one or two people or $110,000 for three or more. The DHCD forgivable loan is tighter, requiring income at or below 80% of area median.
What counts as a first-time buyer in Virginia?
Generally you must not have owned and occupied a primary residence during the past three years. Some programs waive this in targeted areas or for qualifying veterans.