Virginia First-Time Home Buyer Grants and Down Payment Assistance

Saving a down payment in Virginia's market is genuinely difficult — median prices in Northern Virginia regularly exceed $700,000, and even Richmond's "affordable" starter homes now push $400,000. The good news: Virginia operates one of the most generous down payment assistance ecosystems in the country, with true grants (not loans) available through the state and additional assistance stacked on top through city and county programs. Here's exactly how the grant landscape works in 2026.

The Virginia Housing DPA Grant: A True Grant

The Down Payment Assistance Grant from Virginia Housing is the centerpiece of the state's first-time buyer strategy. "Grant" here is not marketing language — it requires zero repayment, at any point, for any reason. There's no forgiveness timeline, no clawback if you sell within three years, no second lien on your title. The money is yours at closing.

To qualify:

• You must be a first-time buyer (no ownership interest in a principal residence in the past three years), unless the property is in a designated Area of Economic Opportunity
• You must use an eligible Virginia Housing first mortgage — either FHA or Conventional bond loan
• Household income must fall within Virginia Housing's MSA-specific limits
• You must complete the Virginia Housing Digital Academy homebuyer education course

The grant covers a percentage of the purchase price and is designed to reduce your required contribution to as little as 1% of the purchase price. That 1% can come from a gift, so a buyer with zero personal savings but a willing family member can qualify.

2026 income limits for the DPA Grant:

These limits are high enough to cover a meaningful share of moderate-to-upper-middle-income buyers, particularly in the metro areas. A teacher, a federal employee, or a military spouse in Hampton Roads with a combined household income under $97,000 likely qualifies.

Virginia Housing Closing Cost Assistance Grant

Military buyers and rural buyers have a separate grant available: the Closing Cost Assistance (CCA) Grant. This is specifically designed for buyers using VA or USDA loans — both of which already provide 100% financing with no down payment required. The CCA Grant then covers the closing costs, leaving the buyer with virtually zero out-of-pocket cash at settlement.

For a $450,000 purchase in the Hampton Roads market, this combination — VA loan + CCA Grant — can mean the difference between needing $12,000-$18,000 in cash to close and needing almost nothing.

Local Virginia Down Payment Assistance Programs

Virginia municipalities operate their own DPA programs funded through federal HOME Investment Partnership grants. These are independent of Virginia Housing, each with their own income limits and application processes — but critically, most can be stacked on top of Virginia Housing assistance.

Arlington County — MIPAP The Moderate Income Purchase Assistance Program provides an interest-free deferred second mortgage covering up to 25% of the purchase price (max $112,500) on homes priced up to $500,000. Income limit: $132,880 for a family of four (2026). Uses a shared-appreciation model on repayment — when you sell, you repay the original loan plus a proportionate share of appreciation. Not a true grant, but the terms are favorable for a high-cost market where saving $112,500 would take years.

City of Alexandria — FHAP The Flexible Homeownership Assistance Program offers up to $75,000 in assistance, but it's restricted to specific affordable set-aside units marketed by the City. You can't apply for FHAP for any listing on the open market — the property must be part of the City's designated housing inventory.

Fairfax County — First-Time Homebuyers Program Rather than cash, Fairfax County offers access to Affordable Dwelling Units (ADUs) — inclusionary zoning units priced severely below market. Income limit: $114,750 for a family of four (70% AMI). If you qualify and can work with the county's timeline, this program effectively delivers a home at a price that reflects assistance worth tens or hundreds of thousands of dollars in a high-cost market.

Prince William County — FTHB Program Prince William County uses HOME funds to offer closing cost and down payment assistance for buyers below 80% AMI purchasing anywhere in Prince William County, Manassas, or Manassas Park. This is one of the more accessible NOVA programs given Prince William's status as the affordability sweet spot for commuters pushed out of Fairfax and Loudoun.

Homeward Norfolk — Up to $40,000 The Homeward Norfolk Program provides up to $40,000 for first-time buyers purchasing in three targeted Norfolk neighborhoods: Ingleside, Monticello Village, and Oakdale Farms. Notably, it accepts buyers with household incomes up to 120% AMI — more generous than most city programs that cap at 80% AMI. If you're targeting Norfolk, this is one of the strongest local grants available anywhere in Virginia.

Richmond — ComeHome Initiative The ComeHome Homeownership Initiative offers forgivable loans up to $20,000 for down payment and closing costs in the City of Richmond. Administered by the City with support from local non-profits, the program requires household income between $40,000 and 80% AMI ($90,800 for a family of four in 2026).

Stacking Virginia Housing + Local Grants

Virginia Housing explicitly permits its DPA Grant to be combined with local municipal programs. The highest-leverage approach for a qualified buyer:

1. FHA first mortgage (base loan from a Virginia Housing-approved lender)
2. Virginia Housing DPA Grant (no-repayment grant covering down payment)
3. Local municipal grant — e.g., $40,000 from Homeward Norfolk or $20,000 from Richmond ComeHome

A buyer who executes this stack in Richmond with a $350,000 purchase price could potentially cover the full 3.5% FHA down payment ($12,250) plus significant closing costs without using any of their own money. The stack requires careful coordination — both funding sources operate on different application timelines and must be layered properly in the underwriting — but it's legal and explicitly encouraged by Virginia Housing.

The key constraint: all Virginia Housing programs require you to use a Virginia Housing-approved lender. Not every bank or mortgage company is approved. Verify lender eligibility at the Virginia Housing website before you start applications.

What to Do Before You Apply

1. Pull your credit reports and resolve any errors — credit score directly affects which program tiers you qualify for
2. Calculate your gross household income and verify it against the limits for your specific MSA
3. Complete the Virginia Housing Digital Academy course (required before closing)
4. Work only with a Virginia Housing-approved lender from day one — starting with an unapproved lender and switching late creates delays
5. Contact your target city or county housing office to check local program funding availability before submitting your purchase offer

For a complete breakdown of Virginia's closing costs, contract requirements, and the full home-buying process, the Virginia First-Time Home Buyer Guide covers every step with Virginia-specific detail.

See more Virginia guides →