Virginia stands out for offering true grants — money you never repay — toward both the down payment and closing costs, alongside a second-mortgage option for buyers who need a larger amount.
This guide covers what is actually available to first-time buyers in Virginia in 2026 — the agency behind these programs, the loans and down payment help on offer, who qualifies, and how to apply. For the wider local picture, see our Virginia first-time home buyer guide.
The Virginia Housing and its home loan programs
Virginia’s first-time buyer programs are run by the Virginia Housing (formerly VHDA). Like most housing finance agencies, it does not lend directly — instead it offers below-market first mortgages, bundled with down payment help, through a network of approved local lenders. Its main first-mortgage options are:
- Virginia Housing Conventional — as little as 3% down, with a no-mortgage-insurance version available
- FHA, VA, and USDA options — government-backed loans with low or no down payment
- Plus Second Mortgage — a first mortgage paired with a second that covers the down payment
Most of these can be built on top of an FHA, VA, or USDA loan, or a conventional loan, depending on the product you pick — and the real value comes when you pair one with the down payment assistance below.
Down payment assistance in Virginia
Down payment assistance is the heart of what Virginia Housing offers, and Virginia gives buyers more than one way to get it. Uniquely, Virginia’s core help comes as grants, with a repayable second available when you need more.
- Down Payment Assistance (DPA) Grant — grant (no repayment), 2%, sometimes up to 2.5%, of the purchase price.
- Closing Cost Assistance (CCA) Grant — grant (no repayment), up to 2% of the price, for VA and USDA loans.
- Plus Second Mortgage — repayable second, 3%–5% of the price (minimum credit score around 680).
If those terms are unfamiliar, our national guide to down payment assistance explains exactly how grants, forgivable second mortgages, and deferred loans differ — and what each one means when you eventually sell or refinance.
How much help could you get?
On a $320,000 home in Virginia, a 2% DPA grant provides about $6,400 that you never repay — genuinely free money toward the down payment. Buyers using a VA or USDA loan can add a closing-cost grant of up to 2% more. If you need a larger amount, the Plus Second Mortgage can cover 3%–5% as a repayable second, though it asks for a higher credit score. Confirm current grant percentages and locality income limits with Virginia Housing.
Who qualifies in Virginia?
Every program sets its own rules, and they change periodically, but the common requirements in Virginia look like this:
- 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.
- Credit score. A minimum of 640 applies (660 for the no-mortgage-insurance option, 680 for the Plus Second Mortgage). Our guide to credit score requirements covers what moves the needle.
- Homebuyer education. A free Virginia Housing homebuyer class is required.
- Purchase price limits. Sales-price and loan limits apply by locality.
Virginia programs worth knowing about
Beyond the standard offerings, Virginia aims extra help at specific buyers and places. Watch for:
- Granting Freedom — accessibility grants for veterans with a service-connected disability
- Targeted-area provisions — relax the first-time requirement in designated areas
Mortgage Credit Certificates in Virginia
Note that Virginia Housing’s Mortgage Credit Certificate program has been suspended to new applicants since May 2023, so do not plan on an MCC in Virginia unless the agency reopens it — confirm the current status directly. A Mortgage Credit Certificate is a federal tax credit worth a percentage of the mortgage interest you pay every year for the life of the loan, and where it is available it can usually be combined with the assistance above — putting money back in your pocket each tax season.
How to apply for Virginia assistance
- Set your budget first. Our home affordability guide helps you land on a realistic price range before you start shopping.
- Complete a homebuyer education course. Nearly every Virginia program requires one, and it is usually free and available online.
- Find a participating lender. Not every lender originates Virginia Housing loans, so ask directly which Virginia Housing programs a lender offers and have them run your numbers against a few.
- Get pre-approved and lock in the right program for your income, credit, and target home before you make an offer.
One important note: Virginia Housing program funding and terms change from year to year, and some assistance rounds close when the money runs out. Always confirm current amounts and availability directly with Virginia Housing before you count on a specific figure. Our first-time home buyer checklist keeps the rest of your process on track.
Virginia first-time buyer programs FAQ
Do I have to be a first-time buyer to get assistance in Virginia?
First-time status is required for the grants (or buying in a targeted area); some loans allow repeat buyers.
What credit score do I need for Virginia Housing programs?
A minimum of 640 applies (660 for the no-mortgage-insurance option, 680 for the Plus Second Mortgage). Keep in mind a program’s own minimum can sit above the loan’s floor, so confirm the exact number with your lender.
Can I use Virginia assistance with an FHA, VA, or USDA loan?
Yes. Virginia Housing assistance is built to layer on top of a first mortgage, and FHA, VA, and USDA loans are common partners because their own down payment requirements are already low. Your lender structures both pieces so they close together.
Does Virginia offer a real down payment grant I don’t pay back?
Yes. Virginia Housing’s Down Payment Assistance Grant provides 2% (sometimes up to 2.5%) of the purchase price as a true grant — there is no repayment and no second lien. 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) and completion of the free homebuyer class. Verify current percentages with Virginia Housing.
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.