Updated · Mike Certo, NMLS #260555
Virginia Down Payment Assistance Programs Guide
Virginia Housing (formerly VHDA) operates a strong DPA program family covering grants, second mortgages, and tax credits. Local county and city DPA programs supplement state programs across Northern Virginia, Richmond, and Hampton Roads. Here's the practical Virginia DPA program map.
Virginia Housing program family
Virginia Housing DPA Grant
True grant whose amount varies by current Virginia Housing guideline (recently around 2–2.5% of the purchase price per lender guidance) — never repaid, no lien recorded. First-time buyers on eligible Virginia Housing first mortgages; cannot stack with other DPA. Grant — does NOT require repayment. Income limits by county. Pairs with an eligible Virginia Housing first mortgage (FHA bond or Conventional bond pathways). Verify current eligibility via Virginia Housing.
Virginia Housing Plus Second Mortgage
A real second loan of 3–5% of the purchase price, repaid monthly alongside your first mortgage — the amount depends on credit score and first-mortgage type. Scores of 680+ may add 1.5% toward closing costs, and buyers bring at least 1% of the price in their own funds. Pairs with Virginia Housing FHA Plus, Conventional, or other eligible Virginia Housing first mortgages — a 30-year fixed second repaid monthly.
Virginia Housing Conventional
Below-market conventional first mortgage with reduced mortgage insurance for income-eligible buyers. Pairs with Plus Second Mortgage or used standalone.
Virginia Housing FHA Plus
FHA first mortgage paired with Plus Second Mortgage DPA. Strong combination for FHA-eligible buyers.
Virginia Housing MCC (Mortgage Credit Certificate)
A federal tax credit program that Virginia Housing SUSPENDED on May 1, 2023 — no new MCCs are issued. If you already hold an MCC from before the suspension, it stays valid for the life of your loan while you occupy the home. Many websites still list this as active; it isn't.
Major Virginia county DPA programs
- Fairfax County FHFLP — first-time homebuyer program
- Arlington County DPA
- Loudoun County workforce housing
- Prince William County DPA
- Henrico County (Richmond area) DPA
- Chesterfield County DPA
Major Virginia city DPA programs
- City of Richmond DPA
- City of Norfolk DPA
- City of Virginia Beach DPA
- City of Roanoke DPA
- City of Alexandria DPA
- City of Lynchburg DPA
- City of Charlottesville DPA
Eligibility variables
- Income limit: Typically tied to county area median income (AMI)
- Purchase-price limit: County-specific (Northern Virginia has higher caps due to high-cost market)
- Credit score: Typically 640+ for Virginia Housing; some national programs accept 600+
- Occupancy: Primary residence only
- First-time buyer: Required for many programs; HUD 3-year definition applies
- Homebuyer education: Required for most programs
One assistance program per transaction
Virginia DPA programs generally do not combine with each other — you select one DPA path per purchase (the Closing Cost Assistance Grant can pair with non-Virginia-Housing grants). New buyers should not plan around MCC stacking: no new MCCs have been issued since May 2023. Existing MCC holders should confirm treatment with their servicer and tax professional.
Next step
20-minute call. Bring city/county, household income, FICO ballpark, target purchase price. We map your top 2-3 program fits.
Related
FAQ
Is Virginia Housing's Granting Freedom grant down payment assistance?
No. Granting Freedom is a home-modification grant of up to $10,000 for Virginia Veterans and service members who sustained a line-of-duty injury resulting in a service-connected disability, with household income at or below 80% of area median income. It pays for accessibility work like ramps, widened doorways, and grab bars, not down payment or closing costs. Down-payment help comes from Virginia Housing's separate Down Payment Assistance Grant and Plus Second Mortgage.
What credit score do you need for Virginia Housing programs?
Guideline floors run roughly 620 for the FHA path and 640–660 for conventional options (660 for the no-mortgage-insurance conventional). Virginia Housing updates its guidelines periodically, so we check your exact fit against the current requirements before you apply.
Does Virginia down payment assistance have to be paid back?
Depends on the program. The Virginia Housing DPA Grant and the Closing Cost Assistance Grant are true gifts — no repayment, ever. The Plus Second Mortgage is a real second loan repaid monthly alongside your first mortgage. DHCD's HOMEownership assistance is a deferred loan. We map which structure fits your budget.
Is the Virginia mortgage credit certificate still available?
No — Virginia Housing suspended new MCCs on May 1, 2023. If you already hold an MCC from before the suspension, it stays valid for the life of your loan while you live in the home. Many websites still list the MCC as active; it isn't.
What is the Virginia Housing Closing Cost Assistance Grant?
A grant of up to 2% of the purchase price for buyers using VA (Veterans Affairs) or USDA Rural Development loans — the two $0-down loan types. It covers closing costs, prepaids, and the VA funding fee or RHS guarantee fee, with no repayment.
What is the DHCD HOMEownership program — and how is it different from Virginia Housing?
It's run by a separate state agency (the Department of Housing and Community Development) for buyers at or below 80% of area median income: 10–15% of the sales price plus up to $2,500 toward closing costs, capped at $40,000, with a HUD-certified homebuyer course and a 1% personal contribution required. We work with buyers on both agencies' programs.
What is the SPARC program in Virginia?
SPARC (Sponsoring Partnerships and Revitalizing Communities) improves the pricing of a Virginia Housing first mortgage through funding allocated to specific localities. Funding is limited and locality-by-locality — several localities have exhausted their current-year allocations — so we confirm availability where you're buying.
Do you have to take a class to get down payment assistance in Virginia?
Yes — Virginia Housing requires a free homebuyer education course for its programs, and DHCD requires a HUD-certified course. Both can be completed online, and we point you to the right one for your program.
Can I combine Virginia Housing DPA Grant with Fairfax County FHFLP?
Generally no. You select one DPA program per transaction. Most Virginia DPA programs don't combine with each other.
What's the credit floor for Virginia Housing?
Most Virginia Housing programs require 640+. Some national programs (Chenoa Fund) accept 600+.
Does Northern Virginia high-cost market affect DPA caps?
Yes — Northern Virginia counties have higher purchase-price caps than statewide caps, but still may not accommodate luxury Northern Virginia properties.
Are there Virginia DPA programs without income limits?
National programs like Chenoa Fund, Arrive Home, and Essex/NHF typically don't have income limits — useful for higher-income Northern Virginia buyers who exceed Virginia Housing caps.