First-Time Home Buyer Programs in Virginia

Virginia Housing Development Authority (VHDA) Programs:

VHDA First-Time Homebuyer Loan:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years) or buyers in targeted areas.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with competitive rates; can be paired with down payment assistance.
Requirements:

• Income must not exceed county-specific limits (e.g., $126,500 for a 1-2 person household in Fairfax County as of 2025).
• Minimum credit score of 620 (640 for conventional loans).
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required.
• Purchase price limit of $510,400 (non-targeted areas) or $623,600 (targeted areas).

Down Payment Assistance Grant:

Benefits: Offers up to 2.5% of the purchase price as a non-repayable grant for down payment and closing costs; available with VHDA mortgages.
Eligibility: Must use a VHDA first mortgage; income and purchase price limits apply (same as VHDA First-Time Homebuyer Loan).

Closing Cost Assistance Grant:

Description: Provides up to $2,500 as a non-repayable grant for closing costs; targets low-income first-time buyers with incomes below 80% AMI.
Requirements: Income capped at 80% AMI (e.g., $74,000 in Henrico County for a family of four); must pair with a VHDA mortgage; credit score of 620.

Local Programs:

Richmond

Richmond Down Payment Assistance: Offers up to $15,000 as a deferred loan (0% interest, due upon sale or refinance) for down payment and closing costs; income must be at or below 80% AMI (e.g., $66,750 for a family of four).

Virginia Beach

Virginia Beach First-Time Homebuyer Program: Provides up to $12,000 as a forgivable loan (forgiven after 10 years) for down payment and closing costs; income capped at 80% AMI; targets revitalization areas.

Roanoke

Roanoke Homebuyer Assistance: Offers up to $10,000 as a 0% interest deferred loan (repayable upon sale) for down payment and closing costs; income must be below 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 20% of annual mortgage interest (max $2,000 yearly) for first-time buyers; fee applies; combinable with VHDA loans.
• 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.