Virginia Down Payment Assistance

Virginia Down Payment Assistance Programs

A guide to current down payment assistance options in Virginia, including the state Housing Finance Agency, well-known city and county programs, and live DPA mortgage pricing for Virginia homebuyers.

Virginia Housing Finance Agency

Virginia Housing (Virginia Housing Development Authority) (VHDA)

www.virginiahousing.com

VHDA administers the primary DPA programs for Virginia. Program details below are current as of April 23, 2026 - confirm current terms directly with VHDA before applying.

Statewide DPA Programs in Virginia

Down Payment Assistance Grant

Virginia Housing

Grant

2% to 2.5% of the purchase price as a true grant; no repayment required.

Paired with: FHA, Conventional

  • First-time homebuyer: Required
  • Primary residence only
  • Income: Household income must meet Virginia Housing limits (vary by locality).
  • Homebuyer education required

Can only be used with eligible Virginia Housing first-mortgage programs (Fannie Mae No MI, Fannie Mae Reduced MI, FHA, FHA-CHR, Conventional Bond-CHR). Cannot be used in the same transaction as the Closing Cost Assistance Grant or Plus Second Mortgage.

Source: www.virginiahousing.com

Closing Cost Assistance Grant

Virginia Housing

Grant

Up to 2% of the purchase price as a grant toward closing costs, RHS guarantee fees, or VA funding fees; no repayment required.

Paired with: USDA, VA

  • First-time homebuyer: Required
  • Primary residence only
  • Income: Household income must meet Virginia Housing limits.
  • Homebuyer education required

Available for USDA Rural Development and VA first-mortgage transactions. Cannot be combined with the DPA Grant or Plus Second Mortgage in the same transaction.

Source: www.virginiahousing.com

Plus Second Mortgage

Virginia Housing

Repayable second

Up to 5% of the purchase price (up to 6.5% of purchase price for borrowers with a 680+ credit score who finance closing costs) as a 30-year fixed-rate second mortgage with no prepayment penalty.

Paired with: FHA, Conventional

  • First-time homebuyer: Required
  • Primary residence only
  • Income: Household income must meet Virginia Housing limits.
  • Homebuyer education required

Must be paired with an eligible Virginia Housing first mortgage. Borrowers with a 680+ credit score may finance a portion of closing costs through this loan.

Source: www.virginiahousing.com

Mortgage Credit Certificate (MCC)

Virginia Housing

Mortgage Credit Certificate

Federal tax credit for a portion of annual mortgage interest paid, available for the life of the loan while the home remains the primary residence.

Paired with: FHA, VA, USDA, Conventional

  • First-time homebuyer: Required
  • Primary residence only
  • Income: Virginia Housing MCC income and purchase price limits apply.
  • Homebuyer education required

May be layered with Virginia Housing first-mortgage products and DPA programs subject to program rules.

Source: www.virginiahousing.com

Granting Freedom

Virginia Housing

Grant

Up to $8,000 as a grant for home modifications (ramps, widened doorways, grab bars, other VA-recommended accessibility improvements) for veterans and service members with a service-connected disability.

  • Primary residence only

True grant with no repayment. Available for owner-occupied residences and eligible rental units. Separate from standard down payment assistance.

Source: www.virginiahousing.com

HOMEownership Down Payment and Closing Cost Assistance Program

Virginia Department of Housing and Community Development (DHCD)

Forgivable second

Up to 10% (or 15% in DHCD-designated areas) of the sales price, plus up to $2,500 for closing costs; structured as a 0% deferred loan that is forgiven over a 5-, 10-, or 15-year residency period based on grant size.

Paired with: FHA, VA, USDA, Conventional

  • First-time homebuyer: Required
  • Primary residence only
  • Income: Household income at or below 80% of Area Median Income (AMI).
  • Homebuyer education required

Administered through DHCD-contracted HUD-certified mortgagors. Forgiveness schedule: loans up to $14,999 forgiven after 5 years; $15,000-$40,000 after 10 years; over $40,000 after 15 years.

Source: www.dhcd.virginia.gov

Virginia Notes for Homebuyers

  • Virginia permits both settlement agents and attorneys to conduct closings; deeds of trust are standard with non-judicial foreclosure.

2026 Loan Limits in Virginia

Conforming (Conventional)

$806,500 baseline

Some Virginia counties qualify as high-cost, with limits up to $1,209,750.

FHA

$524,225 floor

Higher-cost Virginia counties can reach the FHA ceiling of $1,209,750.

Live DPA Pricing for Virginia

Pricing below is sourced live from hundreds of wholesale lenders for a Virginia scenario. Edit the inputs to match your situation.

FHA Down Payment Assistance

Up to 5% assistance; repayable second at first rate + 2% over 10 years

Min FICO 580
Program details
  • Minimum credit score: 580
  • Non-traditional credit also possible
  • Assistance up to 2.5%, 3.5%, or 5% of the lesser of purchase price or appraised value
  • Assistance can be used for down payment, closing costs, or both
  • Second lien: 10-year fixed, repayable
  • Second lien rate is 2% higher than the first mortgage rate
  • No first-time homebuyer requirement
  • No income cap
  • Purchase of primary residence only
  • Eligible properties: 1-unit residences, PUD, 2-4 units, FHA-approved condos, manufactured (single/double-wide)
  • DTI per AUS and FHA manual underwriting guidelines
  • First lien: FHA 30-year fixed

Assistance amount

1st lien: $386,000 at 96.5% LTV (FHA)
2nd lien: $14,000 (10-yr fixed, 1st rate + 2%)
Assistance is due upon transfer, sale, or refinance. Pricing estimate only — final rates, fees, and eligibility are determined by the lender.
Program details on this page are compiled from official Virginia Housing Finance Agency and local government sources and were last verified on April 23, 2026. Program availability, funding, eligibility thresholds, and assistance amounts change frequently. Always confirm current terms directly with the administering agency before applying. This page is informational only and is not an offer to lend.

Compare DPA options for Virginia with live pricing

Rate Direct pairs down payment assistance with live first-lien pricing so you see the combined monthly payment up front.

DPA Programs in Other States