Virginia First-Time Home Buyer Programs

There are a variety of state, local, and federal programs that offer Virginia first time home buyer down payment assistance (DPA), grants, low-interest home loans and tax credits to make buying a home easier. We published this article to outline Virginia’s 2025 first-time home buyer programs, including statewide and local initiatives, provides lender references, and includes case studies to illustrate their impact.

Virginia’s housing market, with a median home price of $401,500 in January 2025, poses challenges for first-time home buyers due to rising costs and a competitive market, particularly in areas like Northern Virginia, Richmond, and Virginia Beach. The median down payment in Virginia was $27,000 for single-family homes in 2024, a significant hurdle for many.

Statewide 2025 Virginia First-Time Home Buyer Programs

The Virginia Housing Development Authority (Virginia Housing), officially the VHDA, is the primary provider of first-time home buyer programs, offering 30-year fixed-rate home loans (ie. FHA, VA, USDA, or conventional) paired with home buying grants and home equity loans.

The eligibility for down-payment assistance and grants typically requires a minimum credit score of 620 (660 for no-PMI conventional loans), a debt-to-income (DTI) ratio of 45–50%, completion of a Virginia Housing-approved homebuyer education course, and a minimum borrower contribution (often 1% of the purchase price).

The income and purchase price limits vary by county and household size, with a maximum loan amount of $806,500.

1. Virginia Housing Down Payment Assistance (DPA) Grant

The DPA Grant provides 2–2.5% of the home’s purchase price (no cap specified) as a non-repayable grant for first-time buyers using a Virginia Housing Conventional, Conventional No Mortgage Insurance, or FHA loan. Requirements include:

• Income limits (e.g., $80,000–$164,000 based on household size and area).
• Purchase price limits ($450,000–$750,000 by area).
• Homebuyer education course.

The grant reduces upfront costs and can be paired with other non-Virginia Housing assistance. Details at Virginia Housing DPA Grant.

2. Virginia Housing Closing Cost Assistance (CCA) Grant

The CCA Grant offers up to 2% of the purchase price for first-time buyers using a VA or USDA loan, covering closing costs, discount points, or VA/USDA funding fees. It requires no repayment and pairs with Virginia Housing’s eligible first mortgages. Income and purchase price limits apply, and a 620 credit score is required. Learn more at Virginia Housing CCA Grant.

3. Virginia Housing Plus Second Mortgage

This program provides a second mortgage to cover the entire down payment and, for borrowers with a 680+ credit score, closing costs. It’s a 30-year fixed-rate loan paired with a Virginia Housing first mortgage (FHA, VA, USDA, or conventional), requiring no down payment. Repayment is deferred until sale, refinance, or end of the first mortgage. Eligibility mirrors other Virginia Housing programs. See Virginia Housing Plus Second Mortgage.

4. Virginia Housing Loan Combo

The Loan Combo packages a Virginia Housing first mortgage, DPA Grant, and a free homebuyer education course. It’s ideal for low- to moderate-income first-time buyers seeking a conventional loan with as little as 1% down (when paired with the DPA Grant) or 0% with the Plus Second Mortgage. A 640 credit score is required for conventional loans. More information at Virginia Housing Loan Combo.

5. Virginia Housing Mortgage Credit Certificate (MCC)

The MCC offers a federal tax credit of up to 10% of annual mortgage interest (capped at $2,000) for the life of the loan, reducing tax liability. It’s available to first-time buyers (unless in targeted areas) with income limits and requires a Virginia Housing-approved lender. The MCC cannot pair with the DPA Grant but works with other Virginia Housing loans. Details at Virginia Housing MCC.

6. Virginia Housing Granting Freedom Program

This program provides up to $8,000 in non-repayable grant funds for veterans or active military with service-connected disabilities to make home accessibility modifications. It pairs with Virginia Housing loans and requires coordination with the Virginia Department of Veterans Services. Learn more at Virginia Housing Granting Freedom.

7. Virginia Department of Housing and Community Development (DHCD) HOMEownership DPA Program

The DHCD HOMEownership Program offers grants up to 15% of the purchase price (plus $2,500 for closing costs) for first-time buyers with incomes at or below 80% of the area median income (AMI). The grant has a mandatory affordability period, requiring the home to remain the primary residence. Buyers must contribute 1% of the sales price and complete HUD-certified homebuyer counseling. Contact local providers at DHCD HOMEownership DPA.

8. Virginia Individual Development Accounts (VIDA)

The VIDA program matches savings at a 10:1 rate (up to $10,000) for first-time buyers saving for a down payment. Participants must complete financial education and meet income limits (typically 80% AMI). Administered by local nonprofits, it’s ideal for low-income buyers. Details at DHCD VIDA Program.

9. Virginia Housing Sponsoring Partnerships and Revitalizing Communities (SPARC)

The SPARC program reduces interest rates by 1% on Virginia Housing 30-year mortgages for first-time buyers in partnership with local governments or nonprofits. Income limits (e.g., $141,000–$205,000 in Loudoun County) and a 620 credit score apply. See Virginia Housing SPARC.

10. Virginia First-Time Home Buyer Savings Account

Offered by the Virginia Department of Taxation, this program allows tax-free savings up to $50,000 in principal (plus interest, capped at $150,000) for down payments or closing costs. Income from the account is deducted from state taxes. Details at Virginia Department of Taxation.

Local First-Time Home Buyer Incentives

1. Fairfax County First-Time Homebuyers Program

Fairfax County offers below-market-price homes through its First-Time Homebuyers Program, requiring a Virginia Housing homebuyer education course and a lender pre-approval. Income and residency requirements apply, and homes are allocated via drawings. Learn more at Fairfax County FTHB.

2. Loudoun County Homeownership Programs

Loudoun County provides four programs for first-time buyers living or working in the county for at least six months:

• Down Payment/Closing Cost Assistance (DPCC): Up to 10% of the sales price or $70,000 (whichever is less), forgivable over 15 years.
• DPCC Plus: Similar to DPCC with additional flexibility.
• Public Employee Homeownership Grant (PEG): $25,000 grant for homes in Loudoun, income-limited ($49,200–$114,750).
• SPARC: Lowers interest rates, with $8 million allocated for 2025.

Funding is first-come, first-served. Details at Loudoun County Housing.

3. Prince William County First-Time Homebuyers Program

This program offers DPA loans up to 6% of the purchase price for low- to moderate-income buyers (80% AMI) in Prince William County, Manassas, or Manassas Park. Funding comes from the HOME Investment Partnership and is first-come, first-served. Apply at Prince William County FTHB.

4. Arlington County Moderate-Income Purchase Assistance Program (MIPAP)

MIPAP provides up to $80,000 in DPA as a 0% interest, deferred loan, repayable upon sale or refinance, for first-time buyers earning 80% AMI or less. The home must be in Arlington. See Arlington County MIPAP.

5. City of Richmond ComeHome Homeownership Initiative

Launched in 2024 by the Richmond Redevelopment and Housing Authority (RRHA), this program offers DPA, closing cost assistance, below-market rates, and mortgage insurance relief for public housing residents or voucher holders. Rent payment history can substitute for credit scores. Contact RRHA ComeHome.

6. Newport News First-Time Homebuyers Program

Newport News provides up to $14,500 in DPA as a forgivable loan for first-time buyers. Income limits apply, and the home must be the primary residence. Details at Newport News Housing.

7. Norfolk HomeNet Program

The Norfolk Redevelopment and Housing Authority’s HomeNet offers DPA and homebuyer counseling, partnering with local lenders. Assistance is tailored to low- to moderate-income buyers. Learn more at Norfolk HomeNet.

8. Virginia Beach Down Payment Assistance Program

Virginia Beach offers DPA grants or loans (amounts unspecified) for first-time buyers and closing cost grants for veterans using VA loans. Contact 757-385-5750 or visit Virginia Beach Housing.

9. Chesapeake First-Time Homebuyer Program

Chesapeake provides up to $20,000 in DPA for low- to moderate-income first-time buyers, with income and residency requirements. Details at Chesapeake Housing.

10. Suffolk Make Suffolk HOME Program

Suffolk offers up to $14,500 in DPA as a forgivable loan for first-time buyers earning up to 80% AMI. Contact Suffolk Housing.

Top 5 Virginia Lenders for Home Buyer Grants

Here are five local mortgage lenders for accessing these home buying grants in Virginia.

1. Atlantic Coast Mortgage: Offers Virginia Housing’s DPA Grant and Loan Combo, with up to $2,500 for closing costs.

2. TowneBank Mortgage: Supports Suffolk’s Make Suffolk HOME ($14,500) and Virginia Housing’s grants for FHA and VA loans.

3. George Mason Mortgage: Pairs Virginia Housing’s 2% grant with local programs like Chesapeake’s DPA.

4. Prosperity Home Mortgage: Supports Virginia Housing’s MCC and DPA grants for low-income buyers.

5. Alcova Mortgage: Provides access to Virginia Housing’s $8,000 Granting Freedom for veterans and local DPA.

These mortgage lenders, approved by Virginia Housing, require a 620–660 credit score and homebuyer education. Contact them to verify funding and eligibility and today’s Virginia mortgage rates.

Case Study 1: The Thompson Family in Loudoun County

The Thompsons, a family of four earning $90,000 annually, sought to buy a $400,000 townhome in Leesburg. As first-time buyers living in Loudoun County for two years, they qualified for the Loudoun County PEG Program, receiving a $25,000 grant for their down payment. They paired this with a Virginia Housing Loan Combo, securing a 30-year FHA loan with a 3.5% down payment ($14,000) and a 2% DPA Grant ($8,000), reducing their out-of-pocket down payment to $1,000. The MCC saved them $1,500 annually on taxes. After completing a Virginia Housing education course, they closed in March 2025, using the grant and their $5,000 savings for closing costs. The forgivable PEG grant and deferred DPA loan eased their financial burden, enabling them to build equity.

Case Study 2: Aisha Patel in Richmond

Aisha, a single public housing resident earning $45,000, wanted a $250,000 condo in Richmond. Through the RRHA ComeHome Initiative, she received $10,000 in DPA and closing cost assistance, using her consistent rent payment history to qualify despite a 600 credit score. She paired this with a Virginia Housing Conventional Loan and a $6,250 DPA Grant (2.5% of the purchase price), covering her 3% down payment ($7,500). The VIDA Program matched her $1,000 savings with $10,000, fully covering closing costs. After completing a HUD-certified course, Aisha closed in April 2025. The forgivable RRHA assistance and non-repayable VIDA funds eliminated upfront costs, providing stability and a path to wealth-building.

FAQs for Virginia Home Buyers:

How to Apply for a First-Time Home Buyer Grant in Virginia?

To apply for a first-time home buyer grant in Virginia, start by contacting the Virginia Housing Development Authority (Virginia Housing). You must work with an approved lender, complete a free homebuyer education course, and meet income, credit, and property eligibility requirements. Popular programs include the Down Payment Assistance (DPA) Grant and the Closing Cost Assistance Grant.

How Long is the Home Buying Process in Virginia?

The home buying process in Virginia typically takes 30 to 60 days, depending on market conditions, financing, and inspections. It includes getting pre-approved, house hunting, making an offer, completing inspections, securing final mortgage approval, and closing. Delays can occur with title issues, appraisal shortfalls, or loan underwriting, so working with experienced professionals can help streamline the process.

Can I Buy a Home in Virginia with Bad Credit?

To buy a home in Virginia with bad credit, explore government-backed loans like FHA, which allow credit scores as low as 580. Virginia Housing also offers flexible programs for lower-credit buyers. Strengthen your home loan application by reducing debt, providing a larger down payment, or applying with a co-borrower. We also suggest considering homebuyer education courses and seek assistance from housing counselors or nonprofit organizations for tailored advice and grant options.

Valued Tips for Virginia First-Time Home Buyers

1. Get Pre-Approved: Work with a Virginia Housing-approved lender to determine your budget and strengthen offers. Find lenders at Virginia Housing Lenders.
2. Combine Programs: Pair Virginia Housing’s DPA/CCA Grants with local programs like Loudoun’s PEG or Richmond’s ComeHome for maximum assistance.
3. Complete Education Courses: HUD- or Virginia Housing-approved courses (e.g., Framework or eHomeAmerica) are required and offer budgeting insights. See HUD Housing Counseling.
4. Check Targeted Areas: First-time buyer requirements may be waived in Virginia Housing’s designated areas.
5. Monitor Credit and DTI: Aim for a 620–660 credit score and DTI below 45–50%.

Virginia’s competitive market, with homes selling in a median of 45 days in January 2025, requires quick action. Virginia down payment assistance programs often have income caps (e.g., 80% AMI for DHCD) and purchase price limits, excluding buyers in high-cost areas like Arlington. Grants like PEG are limited and first-come, first-served, while loans like the Plus Second Mortgage require repayment upon sale. Rural USDA loans are restricted to eligible areas, and VA loans require military eligibility. VA home buyers should verify funding availability and review repayment terms, as some local programs (e.g., Arlington’s MIPAP) are deferred but not forgivable.

Virginia’s 2025 first-time home buyer programs, from Virginia Housing’s DPA and CCA Grants to local initiatives in Loudoun, Richmond, and Newport News, provide critical support for navigating high upfront costs. By combining these with federal options like FHA, VA, or HomeReady loans, buyers can minimize out-of-pocket expenses and achieve homeownership. Work with approved lenders, complete required education, and act quickly to secure limited funds, turning the dream of owning a home in Virginia into reality.

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