Buying a home in Virginia can feel out of reach when the down payment is the biggest hurdle. You are not alone. Many first-time and repeat buyers across Northern Virginia and the Commonwealth use Virginia Housing programs to reduce cash-to-close and move in sooner. This guide breaks down who qualifies, how the assistance works, and what steps to take next, so you can shop with confidence. Let’s dive in.
Virginia Housing help at a glance
Virginia Housing (formerly VHDA) offers several options that reduce your upfront costs. Each program has its own rules, pairings, and limits. Here is a quick overview:
Down Payment Assistance (DPA) Grant. A one-time gift you do not repay, used only for down payment. Amount depends on the first mortgage type. It cannot be used with the Plus Second Mortgage or the CCA Grant. See the official DPA Grant guidelines.
Closing Cost Assistance (CCA) Grant. A gift for closing costs (not down payment). It pairs only with select bond VA or RHS first mortgages. It cannot be used with the DPA Grant or Plus Second. Review the CCA Grant guidelines.
Plus Second Mortgage. A 30-year second mortgage that can cover your down payment and sometimes part of closing costs for higher credit scores. Limits vary by first-mortgage type and credit profile. Read the Plus Second guidelines.
Community Heroes Grant. A $5,000 gift for eligible public-service professions. It may be combined with other Virginia Housing options when paired with eligible first mortgages. Check the Community Heroes guidelines.
Note: Virginia Housing’s Mortgage Credit Certificate (MCC) program is currently suspended. Do not plan on MCC as a benefit for new loans.
Who qualifies: the essentials
Eligibility varies by program, but these factors matter most.
First-time buyer rule and exceptions
A first-time buyer is someone who has never owned a home or has not owned a primary residence in the past three years. Virginia Housing waives this rule in certain targeted Areas of Economic Opportunity. Ask your lender to confirm if your property is in a targeted area, or explore Virginia Housing’s resources, including the mobile mortgage office locator, to get started with questions on locations and support.
Income and price limits
Virginia Housing sets household income and sales price or loan limits by area and household size. These limits were updated effective August 19, 2025. You must verify the specific jurisdiction where you are buying. Use the official Income and Sales Price Limits page to confirm your area.
- Northern Virginia snapshot, effective 8/19/2025: For the Washington–Arlington–Alexandria area, DPA and CCA grant household income limits are shown around $148,000 for 1–2 persons and $174,000 for 3 or more persons, with a sales-price limit of $800,000. Standard bond program income caps in the same area are higher (for example, roughly $186,000 for 1–2 persons and $217,000 for 3+ persons). Always confirm current figures for your exact jurisdiction and household size.
Credit score basics
Minimum credit scores depend on the first mortgage. Conventional options often begin near a 640 middle score, and many FHA, VA, and RHS options accept scores near 620. For higher Plus Second Mortgage percentages and the ability to finance part of closing costs, aim for 680 or higher. See Virginia Housing’s homebuyer programs overview for program-level guidance, and confirm lender overlays.
Debt-to-income ratios
Virginia Housing follows typical underwriting ranges by loan type. As general guidance, conventional loans often use about 28 percent front-end and 36 percent back-end ratios. FHA commonly allows near 31 percent front-end and about 43 percent total DTI. VA flexes by full credit profile. Your exact limits depend on automated findings and lender overlays, so a pre-approval is the best way to know where you stand.
Homebuyer education requirement
Many Virginia Housing loans require the free homebuyer education course. If you are buying with a co-borrower, both of you typically must complete it before approval. You can register through Virginia Housing’s Homebuyer Education.
Which assistance pairs with your loan
Choosing the right mix starts with your first mortgage type. Some combinations are allowed, and some are not.
DPA Grant pairs with Virginia Housing bond Conventional or bond FHA first mortgages. It does not pair with the Plus Second Mortgage or the CCA Grant. See the DPA Grant guidelines.
CCA Grant is only available with Virginia Housing bond VA or bond RHS first mortgages. It cannot be combined with the DPA Grant or the Plus Second. Details are in the CCA Grant guidelines.
Plus Second Mortgage pairs with Virginia Housing Conventional and FHA first mortgages. The maximum second-mortgage percentage depends on your first-mortgage type and credit score. Full rules appear in the Plus Second guidelines.
Community Heroes Grant can work with several bond first mortgages and may be combined with other Virginia Housing assistance when program rules allow. See the Community Heroes guidelines.
How much help you can receive
Use these quick reference figures to frame your options. Always confirm the current guideline for your specific loan scenario.
DPA Grant. Up to 2.0 percent of the price or appraised value for Conventional Bond, and up to 2.5 percent for FHA Bond. Funds must go to down payment. A minimum 1 percent borrower contribution is required. See the DPA Grant guidelines.
CCA Grant. Typically up to 2 percent for eligible bond VA or RHS first mortgages. Funds must apply to closing costs, prepaid items, discount points, or eligible upfront fees. See the CCA Grant guidelines.
Plus Second Mortgage. For FHA first mortgages, guideline examples show a baseline near 3.5 percent and up to 5 percent if all borrowers have 680 or higher credit. For Conventional first mortgages, baseline near 3 percent with tiers up to 4.5 percent for higher credit. Some borrowers without scores face limits or are ineligible. The guideline also applies small rate adjustments on the second (for example, FHA +0.25 percent, Conventional +0.125 percent). Review the exact tiers in the Plus Second guidelines.
Community Heroes Grant. A fixed $5,000 gift for eligible careers. No minimum borrower contribution is required under this grant. Confirm stacking rules in the Community Heroes guidelines.
How the process works
Follow this buyer-friendly checklist to move from interest to keys-in-hand.
Check your credit. Pull your tri-merge score and note your middle score. Options open up near 640. If you want the broadest Plus Second tiers and a chance to finance part of closing costs, target 680 or higher.
Contact an approved lender. Use Virginia Housing’s Find a Lender tool to connect with a lender who regularly reserves Virginia Housing assistance and locks loans through their system. Early engagement reduces errors with reservations.
Confirm income and price limits. Compare your household income to your area’s caps and check the sales price or loan limit for the home you want. Limits were updated effective 8/19/2025 and vary by county and household size. Use the official limits lookup.
Complete homebuyer education. Register for the free class and finish it before your lender submits the file. Save your certificate. Start here: Virginia Housing Homebuyer Education.
Gather documents. Typical items include ID, Social Security number, recent pay stubs, last two years of W-2s, recent bank statements, tax returns if self-employed, and gift documentation if using gift funds.
Lock and reserve. Your lender locks the first mortgage and reserves any grant in Virginia Housing’s system. The DPA Grant follows the first-mortgage lock. Grants expire with the lock, and limited extensions are available, up to about 60 days per guideline. Award letters must be signed and placed in the closing package.
Review your closing disclosure. Grants and the Plus Second do not allow cash back beyond verified earnest money and permitted items paid outside closing. If the disclosure shows excess cash back, assistance amounts must be reduced and award letters updated.
Key rules to avoid surprises
No double dipping on restricted combos. DPA cannot be used with Plus Second or CCA. CCA is only for specific bond VA or RHS loans.
Minimum borrower contribution. DPA requires you to bring at least 1 percent from an eligible source. Community Heroes has no minimum contribution.
Funding is limited. Some grants are first-come and can pause when funds run low. Start early and keep an eye on Virginia Housing announcements with your lender.
Targeted-area flexibility. If you are not a first-time buyer, you may still qualify when purchasing in a targeted area. Ask your lender to check this for your property.
Lender overlays. Individual lenders can add requirements on top of Virginia Housing rules. Clarify credit score, reserves, and documentation expectations before you write offers.
Possible recapture tax. Homes financed with certain bond funds can be subject to a federal recapture tax in specific future-sale scenarios. Review Virginia Housing’s recapture tax guidance and consult a tax advisor with questions.
Northern Virginia limits: quick reminder
Limits in Fairfax, Arlington, Alexandria, Loudoun, and Prince William often differ from other parts of the state and can change over time. As of August 19, 2025, example caps for the Washington–Arlington–Alexandria area show around $148,000 for 1–2 person households and $174,000 for 3 or more, with an $800,000 sales-price limit for certain grants. Program limits vary by product, and some standard bond programs have higher income caps in the same area. Always confirm the current figures for your exact jurisdiction and loan product using the official limits page.
What is not allowed or available
No MCC for new locks. Virginia Housing’s MCC program is suspended. Do not plan on a new MCC for tax credits.
No cash back at closing. Assistance cannot result in cash to you beyond allowed items. If the numbers create a surplus, the lender must adjust the assistance.
DPA is for down payment only. DPA funds cannot be used for closing costs. CCA funds are for closing costs only.
Helpful resources
- Program overviews and current options: Virginia Housing Homebuyer Programs
- Down Payment Assistance: DPA Grant guidelines
- Closing Cost Assistance: CCA Grant guidelines
- Plus Second Mortgage: Plus Second guidelines
- Community Heroes: Grant guidelines
- Income and price limits: Limits lookup
- Find approved lenders: Find a Lender
- Homebuyer education: Register here
Buying in Northern Virginia comes with fast-moving listings and specific program pairings. If you want help narrowing options, aligning your budget, and writing winning offers, reach out to our local team. We work side by side with approved lenders and guide you through every step, from pre-approval to closing. When you are ready, connect with T&G Real Estate Advisors to get a clear plan for using Virginia Housing assistance in your home search.
FAQs
Who qualifies for Virginia Housing down payment assistance?
- Most programs target first-time buyers who meet income, price, and credit requirements, with an exception for purchases in targeted areas. Confirm your eligibility with an approved lender and the official limits lookup.
How much down payment help can I get in Virginia?
- DPA Grants typically offer up to 2.0 percent for Conventional Bond and 2.5 percent for FHA Bond, Community Heroes adds $5,000, and the Plus Second can reach up to 5 percent on FHA with 680+ credit. Always check the current guideline for your exact loan.
Do I have to be a first-time buyer to get help?
- Usually yes, if you have owned a primary home in the past three years. You may qualify without the first-time rule if your purchase is in a targeted area. Ask your lender to verify the property’s status.
Can I combine Virginia Housing assistance with a city or county program?
- Often yes. Many local programs can be layered with Virginia Housing, subject to first-mortgage and program rules. Your lender will confirm compatible sources and timing.
Will assistance slow my closing timeline?
- It adds a few steps, like reserving funds and collecting a signed award letter, but an experienced Virginia Housing lender can keep you on track. Start early and complete homebuyer education promptly.
What credit score do I need for Virginia Housing programs?
- Conventional options commonly start near 640, while many FHA, VA, and RHS programs allow scores near 620. Aim for 680 or higher if you want broader Plus Second tiers and potential closing-cost coverage.
