Virginia Housing Programs:
VHDA First-Time Homebuyer Loan:
Eligibility: Targets first-time homebuyers (no homeownership in the past three years), veterans, or buyers in targeted areas (e.g., qualified census tracts); eligible properties include single-family homes, condos, townhomes, manufactured homes on permanent foundations, or multi-family homes (2-4 units, owner-occupied).
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with competitive rates; can be paired with down payment assistance or Mortgage Credit Certificate (MCC).
Requirements:
- Income must not exceed $145,200 for a 1-2 person household or $169,400 for 3 or more in high-cost counties (e.g., Fairfax); lower limits apply elsewhere (e.g., $97,250 in Henrico County).
- Minimum credit score of 620 (640 for conventional, 680 for streamlined processing).
- Debt-to-income ratio capped at 45% (50% with compensating factors).
- Homebuyer education course (6-8 hours, free through Virginia Housing) required.
- Purchase price limit of $510,300 (non-targeted areas) or $784,450 (targeted areas); lower limits in some counties (e.g., $431,650 in Roanoke).
- Minimum borrower contribution of $1,000 plus one month’s housing cost reserves for conventional loans.
Learn more about VHDA First-Time Homebuyer Loan
Down Payment Assistance Grant:
Benefits: Offers up to 3% of the purchase price as a non-repayable grant for down payment and closing costs; available with Virginia Housing FHA, VA, USDA, or conventional loans.
Eligibility: Must use a Virginia Housing first mortgage; income capped at 150% AMI (e.g., $146,250 for a family of four in Fairfax County); homebuyer education required.
Learn more about Down Payment Assistance Grant
Closing Cost Assistance Grant:
Description: Provides up to $4,000 as a non-repayable grant for closing costs; targets low-income first-time buyers with incomes at or below 80% AMI (e.g., $77,900 for a family of four in Henrico County).
Requirements: Must pair with a Virginia Housing first mortgage; minimum credit score of 620; homebuyer education required; limited funding available.
Learn more about Closing Cost Assistance Grant
Down Payment Assistance (DPA) Loan:
Description: Offers up to 6% of the purchase price as a 0% interest, no-monthly-payment second mortgage (repayable upon sale, refinance, or after 30 years) for down payment and closing costs; available with Virginia Housing FHA, VA, USDA, or conventional loans.
Requirements: Must pair with a Virginia Housing first mortgage; same income and purchase price limits as first mortgage; homebuyer education required.
Learn more about Down Payment Assistance Loan
Mortgage Credit Certificate (MCC):
Description: Provides a federal tax credit of up to 10% of annual mortgage interest (max $2,000 yearly) for first-time buyers or buyers in targeted areas; fee of $800 ($400 with Virginia Housing mortgage) applies; recapture tax may apply if sold within 9 years.
Requirements: Must meet Virginia Housing income and purchase price limits; minimum credit score of 620; homebuyer education required.
Learn more about Mortgage Credit Certificate
Conventional Plus Program:
Description: Offers 3% down payment conventional loans (Fannie Mae HFA Preferred or Freddie Mac HFA Advantage) for first-time and repeat buyers; can be paired with down payment assistance.
Requirements: Minimum credit score of 640; same income and purchase price limits as Virginia Housing first mortgages; homebuyer education required.
Learn more about Conventional Plus Program
Local Programs:
Richmond
Richmond Metro Homebuyer Assistance: Offers up to $25,000 as a 0% interest, deferred loan (repayable upon sale or refinance) for first-time buyers; income at or below 80% AMI (e.g., $77,900 for a family of four in Henrico County); purchase price limited to $350,000; requires $1,000 contribution and homebuyer education.
Learn more about Richmond Homebuyer Assistance
Virginia Beach
Virginia Beach Home Purchase Assistance: Offers up to $20,000 as a forgivable loan (forgiven after 5 years) for first-time buyers in targeted revitalization areas; income at or below 80% AMI (e.g., $73,150 for a family of four in Virginia Beach); purchase price limited to $350,000; requires $1,000 contribution and homebuyer education.
Learn more about Virginia Beach Home Purchase Assistance
Roanoke
Roanoke Home Ownership Program: Offers up to $15,000 as a 0% interest, deferred loan (repayable upon sale or refinance) for first-time buyers; income at or below 80% AMI (e.g., $58,400 for a family of four in Roanoke County); purchase price limited to $275,000; requires $500 contribution and homebuyer education.
Learn more about Roanoke Home Ownership Program
Hampton Roads (Regional)
Hampton Roads Housing Partnership: Offers up to $20,000 as a forgivable loan (forgiven after 5 years) for first-time buyers in targeted areas (e.g., Chesapeake, Norfolk, Portsmouth); income at or below 80% AMI; requires $1,000 contribution and homebuyer education.
Learn more about Hampton Roads Housing Partnership
Additional Information:
- Median Home Price: $390,100 (February 2025); median down payment: $23,406 (6% of median price).
- FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
- USDA Loans: Zero-down payment for rural Virginia areas; income limits apply.
- VA Loans: Zero-down payment for eligible veterans or active military; no PMI; flexible credit requirements.
View First-Time Home Buyer Programs for: Washington