Virginia Beach is a heavily military market, and that changes which first-time buyer programs actually make sense. If you are using a VA loan with no down payment, the help you need is with closing costs, not a down payment — and Virginia has a specific grant for exactly that.
Here is what is available to Virginia Beach buyers in 2026.
The Virginia Beach market
Zillow puts Virginia Beach’s typical home value at about $430,374 as of mid-2026, up roughly 3.2% year over year, with a median sale price near $412,259. Homes go pending in about 23 days and roughly 44% sell above list — competitive, but less frantic than Richmond.
At that price point you are comfortably under the state’s $575,000 cap for this area, so purchase price limits are unlikely to be your constraint. Income limits will be.
Virginia Housing limits for this area
Virginia Housing offers the same three products statewide, but the Norfolk / Virginia Beach / Newport News limits run slightly higher than Richmond’s. Effective August 1, 2026:
- DPA and Closing Cost Grants: income up to $97,000 for one or two people, $113,000 for three or more; sales price up to $575,000.
- Standard (bond) loans: income up to $121,000 for one or two people, $141,000 for three or more; same $575,000 cap.
- Expanded (non-bond) with the Plus Second Mortgage: income up to $175,000, no state price ceiling.
Which grant fits a military buyer
This is worth getting right, because the default advice is often wrong for this market.
Closing Cost Assistance Grant
A true grant you never repay, for first-time buyers using VA or USDA bond loans through Virginia Housing. If you are a service member or veteran using your VA entitlement, you are already putting zero down — a down payment grant does little for you, while a closing cost grant directly reduces the cash you bring to the table. For most VA-loan buyers here, this is the right product.
Down Payment Assistance Grant
Also a true grant — 2% of the sales price with a bond conventional loan, 2.5% with a bond FHA loan. The better fit if you are using conventional or FHA financing rather than a VA loan.
Plus Second Mortgage
Not a grant. A fully amortizing 30-year second mortgage with real monthly payments, at a rate above your first (plus 0.25% FHA, plus 0.125% conventional). Covers up to 5% FHA or 4.5% conventional at a 680 score. Useful if you have no cash at all, but understand you are taking on a second payment.
The statewide forgivable loan
Virginia’s DHCD HOMEownership program is available to Virginia Beach buyers through regional HUD-certified counseling agencies. Up to 10% of the sales price (15% in designated localities) plus $2,500 toward closing costs, capped at $40,000.
It is a deferred forgivable loan rather than a grant: five years of affordability for assistance under $15,000, ten years for $15,000 to $40,000. Complete the period and it is forgiven in full. Income must be at or below 80% of area median, and HUD-certified counseling is required.
In Hampton Roads the delivery agency is Virginia Housing & Community Development Corporation in Suffolk, (757) 800-1647. Amounts and current funding are worth confirming by phone — these programs are locally funded and can pause between rounds.
City-run assistance
We could not verify any City of Virginia Beach down payment assistance program. The Department of Housing & Neighborhood Preservation lists housing vouchers, owner-occupied and manufactured-home rehabilitation, code enforcement and homeless services — but no homebuyer product. That is not proof none exists, so a call to (757) 385-5750 is worth it if you want to be thorough.
Practically, plan around the state programs rather than waiting on a city one.
A realistic plan
- If you are eligible for a VA loan, start there — zero down beats any assistance program — and pair it with the Closing Cost Assistance Grant.
- Complete homebuyer education early; the certificate is valid two years.
- Contact VHCDC about the DHCD forgivable loan if your income is at or below 80% AMI. That is where the largest dollars are.
- Get pre-approved with a Virginia Housing participating lender and ask them to price the DPA Grant against the Plus Second Mortgage so you can see the monthly-payment difference plainly.
- Verify limits at application — they changed most recently on August 1, 2026.
Frequently asked questions
Does Virginia Beach have a city down payment assistance program?
We could not verify one. The city’s housing department lists vouchers, rehab programs and homeless services but no homebuyer assistance product. Virginia Beach buyers generally use Virginia Housing’s statewide grants and the DHCD forgivable loan instead.
What is the best program for a military buyer in Virginia Beach?
Usually a VA loan paired with Virginia Housing’s Closing Cost Assistance Grant. Because a VA loan already requires no down payment, a closing cost grant reduces your actual out-of-pocket cash, whereas a down payment grant does not help much.
How much can I earn and still qualify?
For Virginia Housing grants in the Virginia Beach area as of August 2026, up to $97,000 for one or two people and $113,000 for three or more. Standard bond loans allow more, and the non-bond expanded option reaches $175,000.
Is the Virginia Housing Plus Second Mortgage free money?
No. It is a fully amortizing 30-year second mortgage with monthly payments at a rate above your first mortgage. Only the Down Payment Assistance Grant and Closing Cost Assistance Grant are true grants.
What is the maximum home price under these programs?
$575,000 for the Norfolk/Virginia Beach/Newport News area under Virginia Housing bond and grant programs. With the median around $412,000, most Virginia Beach homes fall well within that.