You keep doing the math in your head at night. Rent goes up again in January, but somehow the “20% down payment” number never gets smaller. If that sounds familiar, take a breath — because in Virginia, you almost certainly don’t need 20% down, and you may not need much of your own money at all.
Here’s what most first-time home buyers don’t realize: Virginia has some of the strongest down payment assistance programs in the country, and many of them give you money you never have to pay back.
Quick Answer: What Are the Best Down Payment Assistance Programs in Virginia?
The best down payment assistance programs in Virginia are the Virginia Housing Down Payment Assistance (DPA) Grant, which gives first-time buyers 2% to 2.5% of the purchase price with no repayment required, and the DHCD HOMEownership Down Payment Assistance Program, which offers up to 10–15% of the sales price as a forgivable loan for lower-income buyers. Both can pair with an FHA, conventional, VA, or USDA loan, and several Virginia cities and counties layer on their own local grants for even more help.
That’s the short version. Now let’s talk about which one actually fits your life, because the “best” program depends entirely on your income, your credit, and where in Virginia you’re buying.
Why Down Payment Assistance Exists (And Why You’re Not Behind)
The truth is, buying a house feels overwhelming for almost everyone, not just you. The median home price in Virginia is well above $400,000 in many areas, and saving 20% of that on a normal salary can take a decade. That’s exactly why these programs exist.
Down payment assistance was never meant to be a last resort for people who “couldn’t figure it out.” It’s a mainstream tool. Roughly 40% of first-time buyers nationally use some form of down payment help, according to research from the National Association of Realtors. You are not behind. You’re just missing information most people never get handed to them.
The Main Down Payment Assistance Programs in Virginia
1. Virginia Housing Down Payment Assistance Grant
This is the flagship program, and it’s a true grant — money that never gets repaid. It provides 2.0% of the purchase price if you pair it with a conventional loan, or 2.5% if you pair it with an FHA loan. On a $350,000 home, that’s roughly $7,000 to $8,750 toward your down payment, handed to you at closing.
You do need to use an eligible Virginia Housing first mortgage, and there are household income and purchase price limits based on where you’re buying. First-time buyer status is typically required, though “first-time” often just means you haven’t owned a home in the last three years.
2. Virginia Housing Closing Cost Assistance Grant
Closing costs are the surprise expense nobody warns you about — usually 2% to 5% of the loan amount, on top of your down payment. This grant covers up to 2% of the purchase price for buyers using an RHS (rural) or VA loan. Because VA loans already require no down payment for eligible veterans, this grant is often the most valuable piece of the puzzle for military families and veterans.
3. Virginia Housing Plus Second Mortgage
This one is for buyers who need to eliminate the down payment entirely. It combines your Virginia Housing first mortgage with a second mortgage of 3% to 5% of the purchase price, which covers your down payment. Unlike the grant, this second loan is repaid — but it lets you get into a home now instead of waiting years to save.
4. DHCD HOMEownership Down Payment Assistance Program
Run by Virginia’s Department of Housing and Community Development, this program is built for buyers at or below 80% of the area median income. It offers 10% of the sales price (or 15% in certain approved areas) plus up to $2,500 for closing costs, structured as a 0% interest deferred loan. It’s forgiven over time — 5 years for smaller amounts, 10 years for mid-size, 15 years for larger amounts — as long as you stay in the home.
This is, dollar-for-dollar, one of the largest assistance amounts available in the state. It just comes with narrower income eligibility.
5. Local and City-Specific Grants
Many Virginia localities run their own programs on top of state help. For example, some counties offer grants worth 2% of the purchase price for buyers using conventional or FHA financing, specifically to make homeownership reachable in higher-cost metro areas like Richmond and Northern Virginia. Availability and funding change often, so check with your local housing department before assuming a program is or isn’t open.
Program Comparison at a Glance
| Program | Assistance Amount | Repayment | Best For |
| Virginia Housing DPA Grant | 2.0%–2.5% of purchase price | None — true grant | Most first-time buyers |
| Closing Cost Assistance Grant | Up to 2% of purchase price | None — true grant | VA and RHS loan borrowers |
| Plus Second Mortgage | 3%–5% of purchase price | Repaid over time | Buyers needing $0 down |
| DHCD HOMEownership DPA | 10%–15% of sales price | Forgiven over 5–15 years | Lower-income households |
| Local/city grants | Varies (often ~2%) | Varies by locality | Buyers in specific cities/counties |
A Realistic Example: Meet Danielle
Danielle is a 29-year-old nurse in Chesterfield County, Virginia, earning $58,000 a year. She has decent credit — a 668 score — but only about $4,000 saved. For years, she assumed homeownership was five to seven years away.
Instead, she qualified for an FHA loan combined with the Virginia Housing DPA Grant. On her $310,000 home, the grant covered 2.5%, or roughly $7,750. Paired with the FHA loan’s low 3.5% down requirement, Danielle’s out-of-pocket cash to close ended up being less than $3,000 after seller-paid closing costs were negotiated in.
She closed on her home eight months after first learning these programs existed — not five years.
How to Actually Apply: Step-by-Step
This is where many buyers get stuck, not because it’s hard, but because nobody lays out the order of operations. Here’s the real sequence:
- Check your credit score first. Most programs require a minimum score around 620–640, though some FHA-backed options allow lower. Pull your free report before doing anything else.
- Get pre-qualified with a Virginia Housing–approved lender. Not every lender participates, so this step narrows your options fast and tells you your real budget.
- Complete a homebuyer education course. Most Virginia DPA programs require this, and it’s often free or low-cost online.
- Confirm your income against area median income (AMI) limits. Your lender can pull this instantly — it determines which programs you qualify for.
- Choose your loan type (FHA, conventional, VA, or USDA) based on what pairs with your assistance program.
- Apply for the DPA grant or second mortgage alongside your loan application — these are almost always processed together, not separately.
- Lock your rate and move through underwriting with your lender, keeping your credit and finances stable (no new credit cards, no job changes).
- Close on your home and receive your grant funds directly at the closing table.
Common Mistakes First-Time Buyers Make
Assuming they make too much money. Many buyers self-eliminate before checking real AMI limits, which are often higher than people expect, especially in lower-cost counties.
Opening a new credit card before closing. This is one of the most common last-minute derailments. Even a small new balance can shift your debt-to-income ratio enough to delay or lose approval.
Working with a lender who doesn’t offer Virginia Housing loans. Not every mortgage company is approved to originate these programs, so this is one of the first questions to ask on your very first call.
Waiting to “save more” before applying. So many people delay applying because they assume they need a bigger cushion first. In fact, that’s the exact situation these programs are designed to solve.
Frequently Asked Questions
Do I have to be a first-time home buyer to get down payment assistance in Virginia? Most Virginia Housing programs require first-time buyer status, but this usually means you haven’t owned a home in the past three years — not that you’ve literally never owned one.
What credit score do I need for Virginia down payment assistance? Most programs require a minimum score of around 620 to 640, though exact minimums vary by loan type and lender.
Can I combine multiple down payment assistance programs? Yes, in many cases. For example, a state grant can often be layered with a local city or county grant, though some combinations (like the DPA Grant and Closing Cost Assistance Grant together) may be restricted.
Is down payment assistance considered taxable income? Generally, true grants are not taxed as income, but forgivable loans can have tax implications if not held for the full residency period. Always confirm with a tax professional.
How long does the application process take? From pre-qualification to closing, most buyers using these programs close within 45 to 90 days, similar to a standard mortgage timeline.
Does down payment assistance affect my mortgage interest rate? Sometimes slightly, since bond-funded programs may carry a marginally different rate than standard loans. Your lender can show you the exact comparison for your situation.
You’re Closer Than You Think
Here’s the honest truth: the biggest barrier to homeownership in Virginia usually isn’t money. It’s not knowing these programs exist. Thousands of dollars are sitting in grants and forgivable loans specifically set aside for people in your exact position, and most of it goes unclaimed simply because no one asks.
You don’t need a perfect financial life to start. You need one phone call to a Virginia Housing–approved lender and the willingness to ask, “What am I eligible for?” That single question is often the difference between renting for five more years and holding your own keys by next spring.
