Summary
Learn about Virginia first-time home buyer programs and down payment assistance options, including Virginia Housing grants, closing cost assistance, and financing programs. Eligibility, income limits, purchase price limits, and program availability vary, so buyers should review their individual options with a qualified mortgage professional.
Buying a home in Virginia may require considerably less cash than many buyers expect. Virginia Housing offers several mortgage and assistance programs that can help qualified buyers with down payment and closing costs, including options for both first-time and repeat homebuyers.
The important part is determining which combination of mortgage financing and assistance makes the most sense for your particular situation. Income, credit profile, household size, purchase location and the type of mortgage you use can all affect which programs may be available.
Virginia Housing was formerly known as VHDA, so buyers who have heard about “VHDA loans” are generally referring to programs now offered under the Virginia Housing name.
Virginia Housing Down Payment Assistance Grant
The Virginia Housing Down Payment Assistance Grant can help eligible first-time homebuyers reduce the amount of cash needed for a down payment.
Unlike a second mortgage, the DPA Grant is a true grant and does not require repayment. Eligibility depends on the Virginia Housing first mortgage being used, income and purchase limits, credit requirements and other program guidelines.
This can be particularly valuable for buyers who have adequate income to qualify for a mortgage but want to preserve more of their savings after closing.
Virginia Housing Closing Cost Assistance Grant
Virginia Housing also offers a Closing Cost Assistance (CCA) Grant for eligible first-time homebuyers using certain Virginia Housing VA or USDA/RHS loan programs.
VA and USDA loans can already provide qualified borrowers with 100% financing. The CCA Grant may help address another major obstacle: the closing costs and prepaid expenses that can still be required even when no down payment is necessary.
Like the DPA Grant, the Closing Cost Assistance Grant does not require repayment.
Virginia Housing Plus Second Mortgage
The Virginia Housing Plus Second Mortgage is another option for buyers who need help with their upfront costs.
Instead of providing a grant, this program combines an eligible Virginia Housing first mortgage with a 30-year fixed-rate second mortgage that can cover the required down payment. Depending on the buyer’s credit profile and first mortgage, some borrowers may also be able to finance additional closing costs.
One important distinction is that the Plus Second Mortgage can be available to both first-time and repeat homebuyers. It also uses higher income limits than the Virginia Housing grant programs in many circumstances.
For credit-qualified borrowers with scores of 680 or higher, Virginia Housing guidelines may permit the second mortgage amount to include an additional 1.5% above the purchase price to help with closing costs. The exact amount available depends on the first mortgage and the borrower’s qualifications.
Do You Have to Be a First-Time Homebuyer?
Not for every Virginia Housing program.
The Virginia Housing DPA and CCA grant programs generally require first-time homebuyer status. However, certain Virginia Housing non-bond mortgage programs and the Plus Second Mortgage can also be available to repeat buyers.
For Virginia Housing purposes, a first-time homebuyer generally means someone who has not had an ownership interest in a principal residence during the previous three years. Certain exceptions may also apply, including properties located in designated Areas of Economic Opportunity.
This means buyers should not assume they are ineligible simply because they have owned a home in the past.
2026 Virginia Housing Income and Purchase Limits
Virginia Housing updated its income and sales-price/loan limits effective August 1, 2026. The limits vary by geographic area and by the type of Virginia Housing program being used.
For the Washington-Arlington-Alexandria market, which includes much of Northern Virginia, the 2026 limits for the DPA and CCA Grant programs are:
- Households of 2 or fewer: maximum household income of $148,000
- Households of 3 or more: maximum household income of $174,000
- Sales price / loan limit: $800,000
The Washington-Arlington-Alexandria Virginia Housing area includes Alexandria, Arlington County, Fairfax and Fairfax County, Falls Church, Loudoun County, Prince William County, Manassas, Manassas Park, Stafford County, Fredericksburg, Fauquier County, Clarke County and several surrounding jurisdictions.
Virginia Housing’s Standard/Bond programs have higher income limits in this region, and Expanded/Non-bond programs can have higher limits still. For example, the 2026 Expanded/Non-bond qualifying-income limit for the Washington-Arlington-Alexandria area is currently $245,000.
Because the applicable income calculation can differ by program, buyers should have their individual situation reviewed rather than assuming eligibility from a single income number.
Current limits are published by Virginia Housing at its Income and Sales Price / Loan Limits page.
What Mortgage Programs Can Be Used?
Virginia Housing offers several first-mortgage options, including:
- Conventional financing
- FHA financing
- VA financing for eligible veterans and service members
- USDA/Rural Housing financing for eligible properties and borrowers
The assistance available depends partly on which first mortgage is being used. For example, the DPA Grant is associated with certain Conventional and FHA Virginia Housing loans, while the CCA Grant is designed for certain VA and USDA/RHS loans.
The Plus Second Mortgage can be paired with eligible Virginia Housing Conventional and FHA financing.
How Much Cash Do You Actually Need to Buy a Home in Virginia?
There is no single answer.
The amount of cash needed at closing can depend on:
- Purchase price
- Mortgage program
- Required down payment
- Closing costs and prepaid expenses
- Available Virginia Housing assistance
- Seller-paid closing costs
- Credit profile
- Income and available assets
In some transactions, combining an appropriate mortgage program with Virginia Housing assistance and negotiated seller-paid closing costs can substantially reduce a buyer’s out-of-pocket requirement.
That is why a buyer should not automatically assume that purchasing a home requires saving 10% or 20% for a down payment.
Should You Choose the Program With the Most Assistance?
Not necessarily.
The largest assistance amount does not automatically produce the best mortgage. Different programs may have different interest rates, mortgage insurance costs, repayment requirements, credit standards and long-term costs.
A better approach is to compare the available options side by side and evaluate both:
- How much cash is required at closing
- The resulting monthly mortgage payment
- Whether assistance must be repaid
- The long-term cost of the financing
Sometimes maximizing assistance is the right strategy. In other situations, using less assistance and choosing a different mortgage structure may produce the better financial result.
Virginia, Maryland and Washington DC Homebuyer Programs
Homebuyers throughout the Washington metropolitan area may have very different assistance options depending on which side of the state or District line they purchase in.
If you are also considering Maryland, see our Maryland First-Time Home Buyer Programs & Down Payment Assistance guide.
If you are considering Washington, D.C., see our Washington DC First-Time Home Buyer Programs & Down Payment Assistance guide.
You can also review our broader Down Payment Assistance Programs overview for additional options throughout the DMV area.
Thinking About Buying a Home in Virginia?
The best time to investigate homebuyer assistance is usually before you are ready to make an offer.
Program qualification, income calculations and mortgage comparisons can take time, and understanding your options early can help you establish a realistic purchase price and cash-to-closing target.
If you’re considering buying a home in Virginia—even if you’re several months away—the Chris Jordan Mortgage Team can review your financing options and help determine which Virginia Housing programs may fit your situation.
You don’t need to figure out the programs yourself.
Contact the Chris Jordan Mortgage Team at 240-670-5090 or CJMT@mainstreethl.com to discuss your options.
Virginia Housing program guidelines, interest rates, income limits, purchase-price limits and availability can change. Program eligibility is subject to applicable Virginia Housing and mortgage-investor requirements. Information above is intended for general educational purposes and should be verified for an individual transaction.
