Virginia Housing Programs (formerly VHDA):
Updated July 2026Virginia Housing offers 30-year fixed mortgages through participating lenders plus several grant and second-mortgage options to reduce down payment and closing costs. First-time buyer status is commonly defined as no ownership in the past three years unless buying in a targeted area. Confirm current limits and lender participation at Virginia Housing – Loans & Grants or with a Virginia Housing approved lender.
Virginia first-time homebuyer highlights:
Eligibility: First-time buyers (no ownership in past 3 years) or buyers in Areas of Economic Opportunity; income and sales price limits vary by metro/targeted area.
Offerings: 30-year fixed mortgages (Virginia Housing bond loans that can be FHA, VA, RHS/USDA or conventional), low-down-payment paths, and grant or second-mortgage assistance.
Requirements:
- Income & sales-price limits are area specific—Virginia Housing publishes an income and sales-price table by county/targeted area; check the official lender limits page for your county. Virginia Housing loan limits.
- Credit score: Virginia Housing guidance and lender origination docs commonly allow credit scores as low as ~620 for many bond products; conventional Fannie/Freddie paths often require 640+. Lenders set overlays—get a lender pre-approval for exact cutoffs. See the Virginia Housing Origination Guide for lender details. Origination Guide (PDF).
- Debt-to-income (DTI): Virginia Housing and federal program examples provide common benchmarks (example: FHA back-end often up to ~43%; conventional guidance nearer 28%/36%); lenders may allow higher DTI with compensating factors—confirm with your lender. For lender-facing underwriting detail, see Virginia Housing origination materials.
- Homebuyer education: required for most Virginia Housing grants and many local programs; free courses are available through Virginia Housing and HUD-approved counselors. Free homebuyer classes.
Down Payment Assistance (DPA) — what Virginia Housing actually offers:
Down Payment Assistance Grant: Virginia Housing's DPA Grant is a true gift (no repayment required) when used with eligible Virginia Housing bond loans. Per Virginia Housing lender guidance (DPA Program Guidelines, May 2026), typical maximums are:
- 2% of the lesser of sales price or appraised value for a Virginia Housing Conventional Bond first mortgage.
- 2.5% of the lesser of sales price or appraised value for a Virginia Housing FHA Bond first mortgage.
Plus Second Mortgage: When a DPA grant is not available or a buyer needs larger assistance, Virginia Housing’s Plus Second Mortgage can eliminate the need for a cash down payment when paired with an eligible first mortgage; terms and maximums vary by loan type and borrower credit. Learn more.
Community Heroes / Virginia Heroes:
Virginia Housing published a Community Heroes Grant (a $10,000 gift pilot) for qualifying public servants, but lender updates show the pilot was closed in early 2026. The Community Heroes guidelines and certification forms remain published in Virginia Housing materials; do not assume active availability without lender confirmation. Check Virginia Housing lender updates and the program documentation before advising buyers to rely on it. Virginia Housing lender updates and the Community Heroes program PDF (lender materials) are the authoritative sources.
Local programs (examples and where to check):
Many counties and cities layer local HOME, CDBG, or housing trust fund awards on top of Virginia Housing benefits. Local programs change with HUD and local funding cycles, so verify availability and eligibility with the city housing office or local housing authority.
Richmond / Henrico County
Richmond / RRHA ComeHome and HOME programs: Richmond Redevelopment & Housing Authority runs ComeHome and other homeownership initiatives for public housing and voucher holders; programs include down payment and closing-cost assistance and targeted slots. RRHA notes the ComeHome initiative is undergoing updates—check RRHA for current program status and application steps. RRHA Homeownership.
Virginia Beach / Hampton Roads region
Virginia Beach: The city and regional partners periodically offer HOME or CDBG-funded assistance routed through nonprofit partners. Availability and amounts vary by funding cycle; check the Virginia Beach housing office for current offers and rehabilitation programs. Virginia Beach Housing & Neighborhood Preservation.
Norfolk / Norfolk Redevelopment & Housing Authority
Norfolk Homebuyer Assistance: Norfolk programs administered through NRHA and HOME funding can offer significant down payment and closing cost assistance in targeted neighborhoods. The city’s Homeward Norfolk page lists assistance up to $40,000 (for households between 80–120% AMI in certain target neighborhoods) and up to $60,000 for buyers under 80% AMI in targeted neighborhoods—confirm current program rules, targeted areas, and application cycles on the city or NRHA site. City of Norfolk Strengthening Neighborhoods / Homeward Norfolk and NRHA Homeownership.
Federal loan basics that commonly pair with state/local aid:
- USDA Rural Development: 0% down purchase loans for eligible rural properties; income limits and property eligibility apply. See the USDA Rural Development Virginia state page. USDA RD — Virginia.
- VA loans: Eligible veterans and active duty borrowers may be able to buy with no down payment through VA-guaranteed loans; lenders verify Certificate of Eligibility. See VA home loans. VA home loans.
- FHA loans: FHA rules set minimum down payment and credit thresholds (for example, FHA provides 3.5% minimum down for borrowers with credit scores of 580 or higher under FHA rules); refer to HUD/FHA for current credit and mortgage insurance guidance. HUD / FHA.
Always confirm details (income limits, sales price limits, program open dates, and lender overlays) with a Virginia Housing approved lender or the city/housing authority administering local funds. Virginia Housing is the primary statewide source: Virginia Housing.
Seeking Agents® connects you with Virginia agents who understand these programs and compete to offer reduced commissions or added services—free for buyers and sellers.