Virginia First-Time Homebuyer Programs: Down Payment Assistance, VA Loans & State Grants
"One of the most common things I hear from first-time buyers is: 'I did not know these programs even existed.' Virginia has some of the most generous first-time homebuyer assistance in the country — down payment grants you do not have to pay back, VA loans with zero down and no PMI, and state-funded closing cost help. My goal with this guide is to make sure you walk in already knowing every option on the table, so you can make the smartest move possible."
— Shannon Russell, MRP
Virginia offers a robust network of first-time homebuyer programs designed to make homeownership more accessible — whether you are a military family using a VA loan, a young professional buying your first condo in Richmond, or a growing family searching for a starter home in Chesterfield or Mechanicsville. Between state-level down payment assistance grants, federal VA loan benefits, and local municipal programs, it is possible to buy a home in Virginia with significantly less cash upfront than most renters assume.
In this guide, I break down every major first-time homebuyer program available in Virginia — what each one offers, who qualifies, how to apply, and where to find official resources. I also include a dedicated section on VA loans for military families, since Virginia is home to more than 10 major military installations and military buyers have some of the strongest purchasing power in the state.
In This Guide
- 1. Virginia Housing Down Payment Assistance Grant
- 2. Virginia Housing Plus Second Mortgage
- 3. DHCD HOMEownership Down Payment & Closing Cost Assistance
- 4. VA Loans for Military Families
- 5. Other First-Time Buyer Loan Programs (FHA, Conventional 3%)
- 6. Local & Municipal Down Payment Assistance
- 7. Eligibility Requirements at a Glance
- 8. Official Resources & Where to Apply
- 9. Next Steps — How to Get Started
1. Virginia Housing Down Payment Assistance Grant
Virginia Housing (formerly known as VHDA) is a state-chartered, nonprofit organization that offers some of the strongest first-time buyer programs in the commonwealth. The Down Payment Assistance (DPA) Grant is one of the most popular because it provides funds that do not need to be repaid.
Grant Amount
The DPA Grant provides up to 2% to 2.5% of the purchase price toward your down payment — or up to $10,000, whichever applies. On a $350,000 home, that is up to $8,750 in free money toward your down payment.
No Repayment Required
This is a grant — not a loan. You do not have to pay it back as long as you occupy the home as your primary residence.
Eligibility
Must be a first-time homebuyer (or have not owned a home in the past 36 months), complete a Virginia Housing-approved homebuyer education course, meet income limits (which vary by county and household size), and have a minimum credit score of approximately 620. Must be paired with a Virginia Housing conventional, FHA, or no-mortgage-insurance loan.
Sales Price Limits
Virginia Housing sets purchase price caps that vary by county. In most of the Richmond metro, the limit is around $500,000 to $550,000 for a single-family home. This covers the vast majority of first-time buyer purchases in Chesterfield, Henrico, Hanover, New Kent, Newport News, and surrounding areas.
How to apply: You apply through a Virginia Housing-approved lender, not directly through Virginia Housing. Your lender will determine which grant option you qualify for and handle the paperwork as part of your mortgage application. I can connect you with participating lenders in the Richmond and Hampton Roads area.
Official resource: Virginia Housing — Down Payment Assistance Grant
2. Virginia Housing Plus Second Mortgage
If the DPA Grant does not cover enough of your upfront costs, Virginia Housing also offers the Plus Second Mortgage program — a second loan that can cover up to 5% of the purchase price for down payment or closing costs.
| Feature | Details |
|---|---|
| Assistance Amount | Up to 5% of the purchase price |
| Interest Rate | Comparable to the first mortgage rate |
| Repayment | Amortized over the full loan term (15 or 30 years) |
| Use of Funds | Down payment and/or closing costs |
| Credit Score | Minimum 620 (varies by loan type) |
| Homebuyer Education | Required through a Virginia Housing-approved provider |
| Stacking | Can be combined with the DPA Grant and Virginia Housing first mortgage |
Here is what makes the Plus Second Mortgage powerful: it can be stacked with the DPA Grant. That means on a $350,000 home, you could receive up to $8,750 as a down payment grant plus up to $17,500 from the second mortgage — totaling $26,250 in assistance. You would repay the second mortgage over time, but the combined help dramatically reduces the cash you need at closing.
Official resource: Virginia Housing — Homebuyer Programs
3. DHCD HOMEownership Down Payment & Closing Cost Assistance
The Virginia Department of Housing and Community Development (DHCD) runs the HOMEownership Down Payment and Closing Cost Assistance Program — a gap-financing program for low-to-moderate-income first-time homebuyers. This program is especially relevant for buyers in areas designated by DHCD as higher-need communities.
Assistance Amount
Up to 10% of the purchase price, or up to 15% in DHCD-designated areas, plus up to $2,500 for closing costs. Maximum total assistance is capped at $40,000 (some pilot programs offer up to $50,000).
Forgivable Loan
This is a 0% interest, deferred-payment second mortgage that is forgiving over a residency period of 5, 10, or 15 years depending on the grant size. Stay in the home and you never have to repay it.
Income Requirements
Household income must be at or below 80% of the Area Median Income (AMI) for your county. Must be a first-time homebuyer (not owned a home in the past 3 years). Completion of a HUD-certified homebuyer education course is required.
Property Requirements
The home must be your primary residence and meet safe, decent, and accessible standards. Single-family homes, townhomes, and condos are eligible. Modular or manufactured homes may qualify under specific criteria.
Official resource: Virginia DHCD — Down Payment Assistance Program
4. VA Loans for Military Families
Virginia is home to more than 10 major military installations — including Naval Station Norfolk, Joint Base Langley-Eustis, Fort Gregg-Adams, NAS Oceana, and more. For eligible service members, veterans, and surviving spouses, the VA loan is one of the most powerful home-buying tools in existence. As an MRP-certified agent and a proud Navy veteran's wife, I help military first-time buyers navigate the VA loan process from Certificate of Eligibility to closing day.
Why the VA loan is unmatched for first-time military buyers
Zero Down Payment
Eligible VA borrowers can finance 100% of the purchase price with no down payment required. The 2026 VA loan limit in Virginia is $832,750 for a one-unit property — meaning even higher-priced homes in James City County or Henrico are within reach without a single dollar down.
No Private Mortgage Insurance (PMI)
Unlike conventional loans with less than 20% down, VA loans do not require monthly PMI. On a $350,000 loan, that saves roughly $150 to $300 per month — or $1,800 to $3,600 per year.
Competitive Interest Rates
VA loans are backed by the federal government, which allows lenders to offer lower interest rates than conventional loans — often 0.25% to 0.50% lower. Over a 30-year mortgage, that difference can save tens of thousands of dollars.
VA loan eligibility requirements
- Active-duty service members: At least 90 consecutive days of active duty during wartime, or 181 days during peacetime.
- Veterans: Must meet minimum service requirements based on era of service.
- National Guard & Reserves: At least 6 creditable years of service (or 90 days of active-duty service under certain conditions).
- Surviving spouses: Unremarried spouses of service members who died in the line of duty or from a service-connected disability.
- Certificate of Eligibility (COE): Required to apply. Can be obtained online at VA.gov or through your lender.
VA Funding Fee
The VA funding fee is a one-time charge ranging from 0.5% to 3.3% of the loan amount, depending on your down payment, whether it is a first-time or subsequent use, and your service category. However, veterans with a 10% or higher service-connected disability rating are exempt from the funding fee entirely. The fee can be rolled into the loan amount rather than paid upfront.
Virginia-specific VA benefits
- Virginia Housing Closing Cost Assistance Grant: Virginia Housing offers a closing cost assistance grant specifically for eligible VA-guaranteed loan recipients — providing additional funds on top of the zero-down VA loan benefit.
- Real Estate Tax Exemption: Veterans with a 100% service-connected, permanent, and total disability rating qualify for a 100% real estate tax exemption on their primary residence in Virginia, as do certain surviving spouses of service members killed in the line of duty.
- BAH as qualifying income: Your Basic Allowance for Housing counts toward your mortgage qualification, which often increases purchasing power for active-duty buyers.
Official resources: VA.gov — Home Loans | Virginia DVS — Tax Exemptions
5. Other First-Time Buyer Loan Programs
Even if you do not qualify for Virginia Housing or DHCD programs, or you are not eligible for a VA loan, there are still accessible paths to homeownership:
FHA Loan
Insured by the Federal Housing Administration. As little as 3.5% down with a credit score of 580 or higher. FHA loans are forgiving on credit history and debt-to-income ratios, making them popular with buyers building their financial profile. The trade-off is that FHA loans require mortgage insurance premiums (MIP) for the life of the loan in most cases.
Conventional Loan (3% Down)
Programs like Fannie Mae HomeReady and Freddie Mac Home Possible allow as little as 3% down for qualified buyers with a 620+ credit score. PMI can be removed once you reach 20% equity. Conventional loans offer flexibility and often pair well with the Virginia Housing DPA Grant.
USDA Loan
If you are buying in an eligible rural area — which includes parts of New Kent, Amelia, Goochland, King William, and Charles City counties — a USDA loan offers zero down payment with no PMI. Income limits apply, and the property must be in a USDA-eligible area. Check eligibility at USDA.gov.
6. Local & Municipal Down Payment Assistance Programs
Beyond state-level programs, several cities and counties in Virginia offer their own down payment assistance for first-time buyers. These local programs can sometimes be stacked with state grants for even greater assistance:
City of Richmond
The City of Richmond has historically offered first-time homebuyer assistance programs for income-qualified buyers purchasing within city limits. Contact the city's Department of Housing and Community Development for current availability.
Virginia Beach & Hampton Roads
Virginia Beach and other Hampton Roads municipalities have periodically offered DPA programs tied to specific revitalization areas. Availability rotates — your lender can check current programs at the time of application.
Employer-Assisted Programs
Some major Virginia employers offer homebuyer assistance as a benefit. Military families should also check with their installation's Army Community Service (ACS), Fleet and Family Support Center (FFSC), or Airman and Family Readiness Center for any local homeowner assistance programs.
I recommend asking your lender about every available program at the time of application, since local offerings change based on funding cycles. The Virginia Housing and DHCD programs are the most consistently available statewide.
7. Which Program Do I Qualify For? Eligibility at a Glance
Here is a quick comparison to help you identify which programs may be right for you:
| Program | Assistance | Min. Credit | Repayment? |
|---|---|---|---|
| Virginia Housing DPA Grant | Up to 2–2.5% of price (or $10K) | ~620 | No (grant) |
| VA Housing Plus Second Mortgage | Up to 5% of price | ~620 | Yes (amortized) |
| DHCD HOMEownership DPA | Up to 10–15% of price ($40K max) | Varies | Forgivable (5–15 yrs) |
| VA Loan | 100% financing ($0 down) | ~580–620 (lender) | Primary mortgage only |
| FHA Loan | 96.5% financing (3.5% down) | 580 | Primary mortgage + MIP |
| Conventional 3% | 97% financing (3% down) | 620 | Primary mortgage + PMI |
| USDA Loan | 100% financing ($0 down) | ~640 | Primary mortgage only |
8. Official Resources — Where to Learn More and Apply
Always verify program details and current availability through official sources. Here are the key resources:
Virginia Housing (formerly VHDA)
DPA Grant, Plus Second Mortgage, and Virginia Housing loans.
www.virginiahousing.com/homebuyers
Virginia DHCD — Down Payment Assistance
HOMEownership DPA Program and pilot programs.
www.dhcd.virginia.gov/dpa
VA.gov — Home Loans
VA loan eligibility, Certificate of Eligibility (COE), and home loan application process.
www.va.gov/housing-assistance/home-loans
Virginia Department of Veterans Services — Tax Exemptions
Real estate tax exemption for 100% disabled veterans and certain surviving spouses.
www.dvs.virginia.gov/benefits-services/tax-exemptions
USDA — Rural Development Eligibility
Check whether your target property is in an eligible USDA area.
eligibility.sc.egov.usda.gov
Virginia Housing — Military Grants
Closing cost assistance grant for eligible VA-guaranteed loan recipients.
www.virginiahousing.com/en/homebuyers/military-grants
9. Next Steps — How to Get Started
Here are the concrete steps I recommend for every first-time buyer I work with:
Step 1: Talk to a Virginia Housing-Approved Lender
A lender who participates in Virginia Housing programs can assess your eligibility across all programs — DPA Grant, Plus Second Mortgage, VA loans, FHA, and conventional — in a single conversation. I can connect you with trusted local lenders who specialize in these programs.
Step 2: Complete Your Homebuyer Education Course
Most Virginia Housing and DHCD programs require you to complete a homebuyer education course before you apply. This is actually a huge benefit — it walks you through budgeting, the buying process, and homeownership responsibilities so you walk into closing fully prepared.
Step 3: Get Pre-Approved and Layer Your Programs
Your pre-approval letter will specify the loan program and any DPA grants or second mortgages included. Many first-time buyers are surprised to learn that combining a Virginia Housing first mortgage with the DPA Grant and the Plus Second Mortgage can cover nearly all of their upfront costs.
Step 4: Start Your Home Search with a Local Agent
Once you have your pre-approval in hand, we can start touring homes that fit your budget and your lifestyle — in the neighborhoods, school zones, and commute corridors that matter most to you. I know every community from New Kent to Newport News, and I will help you find the one that fits.
Military buyers: If you are using a VA loan, I recommend also checking your eligibility for the Virginia Housing military closing cost grant and the Virginia real estate tax exemption if you have a service-connected disability. These are benefits many buyers do not know exist, and they can meaningfully reduce your ongoing costs.
Let's Figure Out Which Programs Work for You
Whether you are a first-time buyer exploring every grant available or a military family ready to use your VA loan benefits, I am here to walk you through every step — from program selection to closing day.
Shannon Russell
Military Relocation Professional (MRP) & Realtor®
Shannon helps first-time home buyers, military families, and local Virginia sellers navigate real estate with clarity and confidence. Reach out directly for personalized buyer guidance — no pressure, no judgment, just honest local expertise.
Call Shannon today at (804) 803-1080 or click "Get in Touch"
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