Virginia Down Payment Assistance (VHDA)

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We are pleased to offer several loan options through VHDA to qualified home buyers.

Program Specifics to Qualify

The VHDA loan program offers a variety of loan options including FHA, VA, USDA and Conventional loans. In addition to these options, VHDA also offers a down payment assistance second mortgage option that can be used with the FHA program and a down payment assistance grant, which can be used in with the Conventional and FHA loan programs. USDA and VA loans are already 100% financing loan options.

Cannot have owned real estate in previous 3 years (3 years federal tax returns required).
620-660 minimum credit score depending on program.
Home Buyer education required. Click here for the free online class.

1 unit homes & primary residence only.
Borrowers cannot have a net worth exceeding 50% of the sales price of the dwelling financed.

Income limits & sales price limits per chart below.

VHDA is now accepting applications at the new increased loan limit of $550,000 in high cost areas.

2022 VHDA income limits

Each VHDA home loan has specialized benefits and features to better assist the Virginian home buyer.

Conventional Fannie Mae HFA Preferred with Reduced Mortgage Insurance

Low 3% down payment required
Affordable monthly payment
As low as 1% down with VHDA DPA Grant
97% maximum financing
Lowest mortgage insurance requirements

Eligible for DPA Grant
Eligible for MCC
660 minimum credit score
Available for first-time and repeat buyers

Conventional Fannie Mae 97% with No Mortgage Insurance

Low 3% down payment required
Affordable monthly payment
As low as 1% down with VHDA DPA Grant
97% maximum financing
No monthy mortgage insurance requirement

Eligible for DPA Grant
Eligible for MCC
660 minimum credit score
Available for first-time and repeat buyers

VA (Veterans Administration)

VA-fixed first mortgage
100% financing, no down payment

Eligible for VHDA's Closing Cost Assistance Grant
Eligible for MCC

FHA

FHA insured
Low down payment
As low as 1% down with VHDA DPA Grant or VHDA 2nd mortgage

3.5% down payment
VHDA DPA Grant eligible
Eligible for MCC

USDA (Rural Housing Service)

USDA guaranteed
$0 down required for eligible rural properties
Lower monthly payments
100% financing

Low mortgage insurance
Eligible for VHDA's Closing Cost Assistance Grant
Eligible for MCC

How else can you save money?

Down Payment Assistance Grant (DPA)

This grant contributes to the down payment for eligible first-time home buyers, and no repayment is required.

Requirements:

Property must be in the state of Virginia
Conventional buyers may receive 2% of purchase price towards down payment

FHA buyers may receive up to 2.5% of purchase price towards down payment
Maximum purchase price is $500,000

Mortgage Credit Certificate (MCC)

Federal tax credit that could save eligible first-time homebuyers thousands of dollars by reducing the amount of federal income tax they owe (please consult a tax advisor).

Requirements:

The credit is equal to 20% of the annual mortgage interest paid
Remaining 80% may still be taken as a tax deduction
MCC effective for life of a mortgage, as long as homebuyer lives in the home

May be combined with down payment assistance
Income and sales price limits apply
Use home as principal residence

Certain income limits and loan restrictions could be waived in areas of economic opportunity. These are federally targeted areas. Click here for the property lookup tool.

Income / Sales Price & Loan Limits

Eligible applicants may also apply for the Mortgage Credit Certificate (MCC) to take advantage of even greater annual savings at tax time.

For more information about VHDA, Click Here to visit the VHDA official website.

Curious if you qualify?

Call (240) 670-5090
Email us directly, or Pre-Qualify Here