Virginia is really several housing markets wearing one state’s name, and that matters enormously for a first-time buyer. Northern Virginia — the Washington, D.C. suburbs like Arlington, Alexandria, and Loudoun and Fairfax counties — is among the priciest housing in the country, driven by federal jobs, defense contractors, and tech. Head south and west, though, and the picture changes fast: Richmond and Hampton Roads (Norfolk, Virginia Beach, Newport News) are much more attainable, and the Shenandoah Valley, Southside, and far southwestern Virginia can be genuinely affordable, often below the national average. Property taxes in Virginia are moderate overall, which is a relief after some neighboring states, though rates vary by county and city. The best news for first-time buyers is that Virginia’s housing agency runs one of the clearer, better-known assistance lineups in the country — including an actual grant you never repay. This guide breaks it all down in plain English, the way I’d explain it to a sibling before they started looking.
One term to know going in: “down payment assistance” (DPA) is money that helps cover the cash you bring to closing — the down payment and closing costs. Virginia offers it in two very different flavors: a true grant (never repaid) and a second mortgage (repaid over time). Knowing which one you’re using is the whole game, so we’ll be clear about that throughout.
The headline programs: Virginia Housing
Virginia Housing (formerly the Virginia Housing Development Authority, VHDA) is the state’s housing finance agency and the source of the main first-time buyer help. You work through a Virginia Housing–approved lender, who pairs a Virginia Housing mortgage with one of two down payment products. Here’s the crucial thing: the two can’t be used together, so you pick the one that fits.
The Down Payment Assistance Grant
The Down Payment Assistance (DPA) Grant is the crown jewel because it’s a true grant — you never repay it. It provides roughly 2% to 2.5% of the purchase price toward your down payment. On a $320,000 home, that’s about $6,400 to $8,000 of free money. To qualify, you generally need to be a first-time buyer (or buying in a designated “Area of Economic Opportunity”), use a Virginia Housing mortgage, and earn no more than the regional income limit for the grant. Because it’s a grant, the income limits are tighter than for the loan-based option — commonly landing somewhere between about $90,000 and $174,000 depending on your household size and where you’re buying.
The Plus Second Mortgage
If you don’t qualify for the grant (usually because your income is too high) or you’re not a first-time buyer, the Plus Second Mortgage is the alternative. It’s a second loan of up to 5% of the purchase price for the down payment, plus an additional amount (around 1.5%) that can go toward closing costs. Because it’s a loan rather than a grant, it has to be repaid — but it can effectively eliminate the need for any down payment out of your own pocket, and it comes with higher income and sales-price limits than the grant. It’s available to both first-time and repeat buyers.
Income limits, eligibility, and the MCC
Income and sales-price limits vary by region and household size and change over time, so confirm current numbers with a Virginia Housing lender. Virginia Housing also offers a Mortgage Credit Certificate (MCC) in many cases, which turns part of your annual mortgage interest into a federal tax credit — additional savings on top of your DPA for as long as you hold the loan.
- The grant requires first-time buyer status (or an Area of Economic Opportunity) and has tighter income limits.
- The Plus Second Mortgage is open to repeat buyers and has higher income and price limits.
- You can use one or the other — not both together.
- A credit score around 620 or higher is typical, and the home must be your primary residence.
Homebuyer education
Virginia Housing requires a free homebuyer education course before you close — it’s offered online and through local housing counselors, and it covers budgeting, credit, and the mechanics of closing. It’s a genuinely helpful few hours. Our first-time buyer guide covers the same ground if you’d like a preview.
Which loan is right for you?
Virginia Housing DPA layers on top of a standard mortgage, so you’ll also choose an underlying loan type. Here’s the quick rundown.
FHA loans
An FHA loan, insured by the Federal Housing Administration, allows as little as 3.5% down with more forgiving credit standards — a natural fit for many first-time Virginia buyers. The tradeoff is mortgage insurance that usually lasts the life of the loan until you refinance. Paired with the DPA Grant or Plus Second Mortgage, it can get your out-of-pocket cash very low.
USDA loans
Much of Virginia outside the major metros is USDA-eligible, which makes USDA loans a strong option in the Shenandoah Valley, Southside, and southwestern parts of the state. If you meet the income limits, USDA finances 100% — no down payment. For buyers open to living outside Northern Virginia or the coastal cities, this can dramatically expand what you can afford.
VA loans
Virginia has one of the largest active-duty and veteran populations in the nation, thanks to installations across Hampton Roads and Northern Virginia — so VA loans are enormously relevant here. If you’ve served, a VA loan means zero down, no monthly mortgage insurance, and strong rates. It’s usually the best option available to those eligible, and Virginia Housing programs can help with closing costs alongside it.
Conventional loans
A conventional loan can start at 3% down for first-time buyers through HomeReady and Home Possible. If your credit is strong, it’s often cheapest long-term because you can cancel private mortgage insurance once you hit 20% equity. Virginia Housing’s programs work with conventional financing, and the DPA Grant pairs especially well since it reduces your cash to close without adding a repayable loan.
What homes cost and what you’ll need
Plan for closing costs of roughly 2% to 5% of the purchase price on top of your down payment. On a $340,000 home, that’s about $6,800 to $17,000 covering lender fees, title insurance, appraisal, and prepaid escrow. In Northern Virginia’s pricier markets that figure climbs quickly, which is exactly why the Plus Second Mortgage (with its closing-cost component) is so popular there, while the grant tends to be the go-to in more moderate markets.
On property taxes, Virginia sits comfortably in the moderate range nationally — a welcome contrast to some neighboring states — but rates are set locally, so a home in one county or independent city can carry a noticeably different tax bill than a similar home a few miles away. Virginia also levies a personal property tax on vehicles in most localities, which isn’t a housing cost but is worth knowing about when you budget your overall move. Always ask your lender to show you the full monthly payment — principal, interest, taxes, and insurance — so there are no surprises. See our down payment assistance hub for how to combine help.
The buying process in Virginia
Virginia’s buying process tracks most states’, with one important national change. Since August 17, 2024, under the NAR (National Association of Realtors) settlement, buyers must sign a written buyer agreement with their agent before touring homes. That agreement spells out how your agent is paid, and that commission is now openly negotiable and no longer advertised in the MLS (the shared listing system agents use). Practically, that means having a candid conversation about fees before you start looking. Our NAR settlement explainer covers exactly what changed.
Here’s the usual order of operations.
- Get pre-approved. A lender confirms your budget in writing. In competitive Virginia markets, sellers expect it before considering an offer.
- Ask about Virginia Housing early. Tell your lender you want to use the DPA Grant or Plus Second Mortgage up front so they can determine which you qualify for and structure it correctly.
- Choose an agent and sign the buyer agreement. Interview a couple, understand the fee, and get it in writing. Our guide to finding an agent helps you vet candidates.
- Tour and make an offer. Your agent runs comparable sales and helps you set price and terms.
- Inspection. Hire a professional inspector. In older Richmond and Hampton Roads homes, check for issues like foundation, roof, and any coastal-flood exposure in low-lying areas.
- Appraisal and underwriting. Your lender confirms value and finalizes the loan.
- Close. You sign, your DPA is applied, and you get the keys.
For the full national walkthrough, see our home buying process guide, and compare other markets across our state guides.
Smart moves before you apply in Virginia
Virginia rewards buyers who plan, especially because choosing between the DPA Grant and the Plus Second Mortgage depends on numbers you can influence in advance. A few months of preparation can literally change which program you qualify for. Here’s a practical checklist.
- Know your income relative to the limits. The grant has tighter income caps than the Plus Second Mortgage. If you’re near a threshold, understanding where you land helps you and your lender pick the right path.
- Clean up your credit early. Check all three bureaus, dispute errors, and pay down balances. A stronger score widens your options and lowers your rate.
- Talk to a Virginia Housing lender first. They’ll tell you whether the grant or the Plus Second Mortgage fits, and whether you also qualify for a Mortgage Credit Certificate for ongoing tax savings.
- If you’re a veteran, start with your VA benefit. Northern Virginia and Hampton Roads lenders are fluent in combining VA loans with state assistance — lean on that expertise.
- Weigh location seriously. If Northern Virginia is out of reach, Richmond, Hampton Roads, and USDA-eligible areas farther out can dramatically change your budget.
Handle these up front and you’ll arrive at the offer table with a clear budget, the right assistance program identified, and — if you qualify — a grant that puts free money toward your purchase. That’s a strong position in any Virginia market.
Virginia first-time buyer FAQ
What’s the difference between the DPA Grant and the Plus Second Mortgage?
The DPA Grant (about 2% to 2.5% of the price) is free money you never repay, but it has tighter income limits and generally requires first-time buyer status. The Plus Second Mortgage (up to 5% plus closing-cost help) is a loan you repay, but it has higher income limits and is open to repeat buyers. You can use one or the other, not both.
Do I really never have to repay the grant?
Correct — the Down Payment Assistance Grant is a true grant, not a deferred loan. As long as you meet the program’s conditions, there’s nothing to pay back. That’s what makes it the most valuable tool in Virginia’s lineup for those who qualify.
I’m a veteran — what should I use?
Start with a VA loan for the zero-down, no-mortgage-insurance benefits. You may still be able to use Virginia Housing assistance to help with closing costs on top. Virginia’s large military presence means many local lenders are experts at combining these, so ask.
Is Northern Virginia the only expensive part of the state?
It’s the priciest by a wide margin. Richmond and Hampton Roads are considerably more attainable, and the Shenandoah Valley, Southside, and southwestern Virginia can be genuinely affordable — with many areas USDA-eligible for zero-down loans. If your job allows flexibility on location, that’s your biggest affordability lever.
What credit score do I need?
Most Virginia Housing programs look for a score around 620, though the exact floor depends on your underlying loan. If you’re below that, spend a few months paying down balances and fixing credit-report errors before you apply — it can also earn you a better interest rate.
Can I combine the assistance with a Mortgage Credit Certificate?
Often, yes. The MCC turns part of your annual mortgage interest into a federal tax credit, and it can stack with Virginia Housing’s down payment help. Ask your lender whether you qualify — it’s ongoing savings for as long as you keep the loan.
Sources: Virginia Housing (virginiahousing.com), U.S. Department of Housing and Urban Development (hud.gov), U.S. Department of Agriculture Rural Development (rd.usda.gov), and the National Association of Realtors (nar.realtor). Program figures, income limits, and sales-price caps vary by region and change periodically; confirm current details with a participating lender. Last reviewed July 2026.
More Virginia first-time buyer resources
Ready to go deeper? Our complete guide to Virginia first-time home buyer programs breaks down every state loan, down payment assistance option, and tax credit available to first-time buyers here.
Looking specifically for grants in Virginia?
If you want to zero in on grant and forgivable money — the help you do not pay back — see our focused guide to first-time home buyer grants in Virginia.