Virginia Down Payment Assistance in 2026
Virginia is one of the few states where a true grant — money you never repay, with no lien — is still on the table for first-time buyers. In 2026, Virginia Housing’s DPA Grant covers up to 2.5% of your purchase, its Plus Second Mortgage reaches 5% for buyers who earn too much for the grant, and Virginia DHCD runs a deeper program for lower-income households.
This guide sorts out which of those you can actually use, what changed for 2026 (including a program suspension you should know about), and how FHA limits split sharply between Northern Virginia and the rest of the state. Every figure is sourced to the agency that runs the program. Size your own numbers first with our down payment calculator.
How down payment assistance works in Virginia
Virginia’s help comes in two distinct shapes, run by two agencies:
- True grants (Virginia Housing). The DPA Grant and the Closing Cost Assistance Grant are never repaid and place no lien on the home. This is rarer than it sounds — most states structure “assistance” as loans.
- Second mortgages. The Plus Second Mortgage is a repayable 30-year second loan; Virginia DHCD’s HOMEownership program is a 0% deferred loan forgiven after a required occupancy period.
You cannot stack the headline options: the DPA Grant and the Plus Second Mortgage cannot be combined — you choose one. New to the mechanics? Start with our guide on how down payment assistance works nationwide and the home buying guide, then come back.
Virginia down payment assistance programs at a glance
| Program | Administrator | Amount (2026) | Structure | First-time buyer? |
|---|---|---|---|---|
| DPA Grant | Virginia Housing | 2% (Conventional Bond) / 2.5% (FHA Bond) of the lesser of sales price or appraised value | True grant — no repayment, no lien | Yes (repeat buyers allowed in Areas of Economic Opportunity) |
| Plus Second Mortgage | Virginia Housing | Up to 5% (down payment); +1.5% for closing costs with 680+ credit | Repayable 30-yr fixed second | No — first-time and repeat |
| Closing Cost Assistance (CCA) Grant | Virginia Housing | Up to 2% (closing costs) | True grant — no repayment | Yes; requires an RHS/VA bond loan |
| HOMEownership DPA | Virginia DHCD | Up to 10% of price (15% in designated areas) + $2,500 closing costs; cap $40,000 | 0% deferred loan; forgiven after required occupancy term | Yes; at or below 80% AMI |
The DPA Grant and Plus Second Mortgage cannot be combined. The Community Heroes Grant is suspended as of March 2026 and is not listed. Sources: virginiahousing.com, dhcd.virginia.gov, HUD 2026 FHA limits.
Virginia Housing DPA Grant: the true grant
The DPA Grant pays 2.5% of the lesser of sales price or appraised value with an FHA Bond first mortgage, or 2% with a Conventional Bond loan — and you never pay it back. No repayment, no lien, no recapture. It attaches to a Virginia Housing bond first mortgage through a participating lender, with a 620 minimum credit score (640 for the conventional combination) and income limits that vary by region. First-time status is generally required, with an exception for repeat buyers purchasing in designated Areas of Economic Opportunity. (Source: virginiahousing.com, DPA Grant guidelines rev. March 2026.)
If closing costs are the bigger problem, the separate Closing Cost Assistance Grant covers up to 2% of the purchase price — also a true grant — for buyers using a Rural Housing Service or VA bond loan.
Plus Second Mortgage: more money, repayable, open to repeat buyers
The Plus Second Mortgage serves buyers the grant cannot: it provides up to 5% of the purchase price toward your down payment, and borrowers with a 680+ credit score can add up to 1.5% above the purchase price for closing costs. Unlike the grant it is a repayable 30-year fixed second mortgage — you carry two monthly payments — and it is open to both first-time and repeat buyers, including those over the grant’s income limits. (Source: virginiahousing.com, guidelines rev. Dec 2025.)
Choosing between them is usually mechanical: if you fit under the grant’s income limits, take the free 2.5%; if you do not, or you need more than 2.5% to close, the Plus Second Mortgage is the route.
Virginia DHCD HOMEownership: the deepest assistance
Virginia’s Department of Housing and Community Development runs a separate program for households at or below 80% of area median income: a 0% interest, deferred loan of up to 10% of the sales price (15% in DHCD-designated areas) plus up to $2,500 in closing costs, capped at $40,000 total. There are no payments during the required residency period, and the loan is forgiven after you complete the required occupancy term — the term depends on the assistance amount, so confirm your schedule with DHCD before closing. (Source: dhcd.virginia.gov/dpa.)
DHCD has also piloted deeper assistance for buyers at or below 60% AMI; funding and amounts change between rounds, so check current availability directly with DHCD rather than relying on published summaries.
Suspended: Community Heroes Grant
Virginia Housing suspended the Community Heroes Grant effective March 2, 2026. If you saw it on an older list — it targeted teachers, first responders and similar professions — it is not currently available. Watch virginiahousing.com for any relaunch announcement.
Federal loan options and Virginia’s split FHA map
Virginia has one of the sharpest FHA divides in the country, verified against HUD’s 2026 county lookup:
- Northern Virginia / DC metro sits at the national ceiling of $1,249,125 for a one-unit home — Arlington, Fairfax County and Fairfax City, Alexandria, Loudoun, Prince William, Stafford, Fauquier, Spotsylvania, Clarke, Culpeper, Falls Church, Fredericksburg, Manassas and Manassas Park, Warren and neighboring jurisdictions.
- Mid-tier metros fall between: Richmond City $707,250; Virginia Beach, Norfolk and Chesapeake $757,850; Charlottesville and Albemarle County $598,000.
- Most of the rest of the state uses the national floor of $541,287 (source: hud.gov).
Conventional loans follow the 2026 conforming limit of $832,750 (source: fhfa.gov). VA loans allow zero down for eligible veterans, and USDA covers much of rural Virginia — see 2026 FHA loan requirements and our mortgage calculator to compare payments.
Income limits for Virginia Housing programs vary by region and household size and are updated on the agency’s schedule — check the current Virginia Housing limits for your area rather than relying on a fixed table.
How to qualify, step by step
- Pick your lane: grant or second mortgage. Check the Virginia Housing income limits for your region; under them, the DPA Grant is usually the answer. Over them, the Plus Second Mortgage.
- Confirm DHCD eligibility if your income is at or below 80% AMI. The $40,000 cap makes it the deepest option for qualifying households.
- Complete homebuyer education. Required across Virginia Housing programs.
- Find a participating lender and get pre-approved on the bond first mortgage — the grant only attaches to Virginia Housing’s own loans.
- Submit your file. Tax returns, pay stubs, bank statements, ID.
- Close. Estimate your remaining cash need with the closing cost calculator.
Mistakes that cost Virginia buyers money
- Trying to stack the Grant and the Plus Second Mortgage. They cannot be combined. Plan around one from the start.
- Assuming assistance means a loan. Virginia’s DPA Grant is a true grant — buyers who skip it because they fear a hidden lien leave 2.5% of the purchase price on the table.
- Anchoring on suspended programs. Community Heroes is suspended as of March 2026; older articles still list it.
- Ignoring the DHCD track at lower incomes. At or below 80% AMI, $40,000 of deferred, forgivable help beats the 2.5% grant on most price points.
- Reading one FHA number for the whole state. The limit more than doubles between rural Virginia ($541,287) and NoVA ($1,249,125) — check your county before you set a budget.
Written by the askdoss Editorial Team. Sources: Virginia Housing (virginiahousing.com), Virginia DHCD (dhcd.virginia.gov), HUD FHA 2026 limits (HUD-No-25-145).
Related down payment assistance guides
Compare Virginia’s options with programs in nearby states and national tools:
- how down payment assistance works nationwide
- North Carolina NCHFA programs
- Georgia Dream program
- Florida down payment assistance
- New Jersey NJHMFA assistance
- Pennsylvania PHFA assistance
- Texas down payment assistance
- estimate your Virginia closing costs
- how much house you can afford
- 2026 FHA loan requirements
- USDA zero-down loans in rural Virginia
Frequently Asked Questions
How much is Virginia Housing’s down payment grant in 2026?
2.5% of the lesser of sales price or appraised value with an FHA Bond loan, or 2% with a Conventional Bond loan — a true grant you never repay.
Can I use both the DPA Grant and the Plus Second Mortgage?
No; they cannot be combined. The Grant has lower income limits; the Plus Second Mortgage (repayable, up to 5%) serves buyers who exceed those limits or need closing-cost help.
Is the DHCD down payment assistance a grant?
No; it is a 0% deferred loan with no payments during the required residency period, forgiven after you occupy the home for the required term. It is limited to first-time buyers at or below 80% of area median income, with assistance capped at $40,000.
Do you have to be a first-time buyer in Virginia?
For the DPA Grant and CCA Grant, generally yes — with an exception in designated Areas of Economic Opportunity. The Plus Second Mortgage is open to repeat buyers too.
Do FHA limits in Northern Virginia differ from the rest of the state?
Yes. Most of Virginia uses the $541,287 floor, but the DC-metro counties — Arlington, Fairfax, Loudoun, Prince William, Alexandria and neighbors — sit at the $1,249,125 ceiling, with Richmond, Hampton Roads and Charlottesville in between.