First-Time Home Buyer Programs in Virginia

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.

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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.

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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.

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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.

Explore additional HUD homeownership resources