Guides / Down Payment Assistance / Virginia

Down Payment Assistance in Virginia

Virginia does have a distinct state-level down payment assistance system, run primarily through two state agencies: Virginia Housing (the state HFA, formerly VHDA) and the Department of Housing and Community Development (DHCD). Virginia Housing's flagship "DPA Grant" (per its official Program Guidelines, last revised March 2026) gives first-time buyers a true grant of 2% (conventional) or 2.5% (FHA) of purchase price when paired with a Virginia Housing bond first mortgage, requiring only a 1% minimum borrower contribution, with eligibility governed by Virginia Housing's own separate "DPA Grant Lower Income Limits" table (specific dollar figures vary by locality/household size and are determined at time of reservation, not published as a single statewide number). Separately, DHCD administers two AMI-based deferred-loan programs (HOMEownership DPA, up to $40,000/80% AMI; and the Virginia Pilot DPA Program, up to $50,000/60% AMI) delivered through local nonprofit/regional provider networks rather than centrally. Exact income and sales-price limit dollar figures are locality-specific and published in lookup tables on virginiahousing.com/dhcd.virginia.gov rather than as flat statewide numbers, so applicants should confirm current limits for their specific county/city with an approved lender or local DPA provider.

Programs

Virginia Housing DPA Grant (Down Payment Assistance Grant)
Virginia Housing (the state's housing finance authority, formerly VHDA)
Amount: A true grant (never repaid) equal to 2% of purchase price/appraised value (whichever is lower) when paired with a Virginia Housing Conventional Bond first mortgage, or 2.5% when paired with a Virginia Housing FHA Bond first mortgage. Funds must go toward the down payment (not closing costs). Borrower must still contribute a minimum 1% down payment, which can come from a gift.
Type: Grant (non-repayable)
Must be a qualified first-time homebuyer (waived if purchasing in a designated targeted/Area of Economic Opportunity). Must use an eligible Virginia Housing Conventional Bond or FHA Bond first mortgage (cannot be used with Virginia Housing VA, RHS, standard Conventional/FHA, Plus Second Mortgage, refinances, or non-Virginia Housing loans). Must meet Virginia Housing's separate 'DPA Grant Lower Income Limits' (a distinct, lower income limit table than the standard bond/targeted-area limits) and the first mortgage's sales price/acquisition cost limits. Minimum credit score and DTI follow whatever the underlying first mortgage program requires (typically 620+ for Virginia Housing loans). Homebuyer education is required per first-mortgage guidelines. Per official Virginia Housing 'DPA Grant Program Guidelines,' last revised March 2026.
HOMEownership Down Payment and Closing Cost Assistance Program (HOME DPA)
Virginia Department of Housing and Community Development (DHCD), delivered through a network of local/regional DPA provider organizations
Amount: Up to 10-15% of the home's sales price for down payment assistance (amount varies by local provider/area), plus up to $2,500 for closing costs. Maximum combined assistance is $40,000. Structured as a deferred, zero-interest loan (no payments/interest accrue during required occupancy) rather than a grant.
Type: Deferred loan (forgivable/no-interest during occupancy period)
Household income at or below 80% of Area Median Income (AMI), which varies by locality. Must be a first-time homebuyer. Property must be safe, decent, and accessible, and must be occupied as the buyer's primary residence for a required period. Applicants apply through a local DPA provider listed on DHCD's Local Provider Contact List, not directly through the state.
Virginia Pilot Down Payment Assistance Program
Virginia Department of Housing and Community Development (DHCD), delivered through designated Virginia DPA Pilot Agencies
Amount: Up to $50,000 in assistance, structured as a deferred loan with no payments or interest accruing during the required occupancy period.
Type: Deferred loan
Targeted at income-eligible first-time homebuyers with household income up to 60% of Area Median Income (AMI) — a lower income ceiling than the HOME DPA program, reflecting its focus on lower-income households. Must occupy the home as a primary residence for a set compliance period. Applied for through specific DHCD-designated Pilot Agencies rather than statewide.
Virginia Housing Closing Cost Assistance (CCA) Grant
Virginia Housing
Amount: A grant (no repayment required) worth up to 2% of the home's purchase price, applied to closing costs, or to VA funding fees/RHS guarantee fees on eligible loans.
Type: Grant (non-repayable)
Used with eligible Virginia Housing first mortgages (RD and VA loan transactions among eligible types); can be combined with other non-Virginia Housing assistance programs. Cannot be combined with the Virginia Housing DPA Grant on the same loan. Follows the underlying first mortgage's income limits, sales price limits, credit score, and first-time-homebuyer requirements.

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

Related Resources
Property Taxes in VirginiaTransfer Tax & Closing Costs in VirginiaBuyer-Agent Agreements in VirginiaSeller Disclosure Laws in VirginiaFind Agents in VirginiaDown Payment Calculator