Virginia First-Time Buyer Assistance: Grants, Loans and 2026 Eligibility

Buying a first home in Virginia usually comes down to one number: the cash you need at closing. The mortgage payment might fit your budget comfortably, but the down payment and closing costs are what stall most renters. Virginia Housing — the state’s housing finance agency, formerly known as VHDA — runs the programs designed to close that gap, and the rules changed enough in recent years that older guides are now wrong on several points.

This guide covers what is actually available in 2026, the exact assistance amounts, who qualifies, and how the state programs stack with FHA, VA, USDA and conventional loans. Every figure below was checked against Virginia Housing, HUD, and the FHFA.

What a first home costs in Virginia right now

The statewide median sale price was $453,389 in May 2026, up about 3% year over year (Redfin). That number matters because it sets your down payment math. On a median-priced home:

• A 3.5% FHA down payment is roughly $15,870.
• A 3% conventional down payment is roughly $13,600.
• Closing costs typically run 2%–5%, or about $9,000–$22,700.

Prices vary sharply by region. Northern Virginia counties near D.C. sit well above the state median, while parts of southwest and southside Virginia sit below it. Your local price drives which loan limits and program caps apply, so treat the median as a starting reference, not a target. You can estimate your own number with a down payment calculator or map your budget against income using this affordability guide.

Virginia Housing programs in 2026

Virginia Housing pairs its own 30-year fixed-rate first mortgages with assistance products. You access these through an approved lender, not directly from the agency. Three programs carry the load in 2026.

Down Payment Assistance (DPA) Grant

This is a true grant — Virginia Housing states plainly that it never has to be repaid. The amount depends on your loan type, and this is the split that older guides tend to flatten:

• 2% of the purchase price on a Virginia Housing Conventional (bond) loan.
• 2.5% of the purchase price on a Virginia Housing FHA/government (bond) loan.

So the grant is *not* a flat “up to 2.5%.” On the median-priced home, that is about $9,068 on the conventional side or $11,335 on the FHA side. To qualify you generally must be a first-time buyer (no ownership interest in a primary residence in the past three years), fall within Virginia Housing’s DPA income limits, stay within the sales-price limits, and bring at least 1% of your own funds to closing.

Closing Cost Assistance (CCA) Grant

The CCA Grant is worth up to 2% of the purchase price and also never has to be repaid. Virginia Housing offers it on its bond government loans — specifically Rural Housing Service (RHS/USDA) and VA transactions — where the low or zero down payment leaves closing costs as the main hurdle. Funds can go toward closing costs, the RHS guarantee fee, or the VA funding fee.

Plus Second Mortgage

If your income is too high for the DPA grant, or you are not a first-time buyer, the Plus Second Mortgage can cover the down payment instead. This is a repayable second loan, not a grant — a 30-year fixed-rate mortgage with no prepayment penalty. The amount depends on your credit score and first-mortgage type, up to a maximum of 5% of the purchase price. Borrowers with a credit score of 680 or higher can also finance part of their closing costs through it. Because it is a second lien you pay back, treat it as debt in your monthly budget, not as free money.

Granting Freedom

Granting Freedom is a grant of up to $8,000 for eligible veterans and service members with a service-connected disability. It funds accessibility modifications to a home — ramps, widened doorways, roll-in showers and similar changes. It is not general down payment assistance, and it should not be counted toward your closing cash. If you or a household member is a disabled veteran, it is worth asking a lender about, but plan your down payment separately.

The Mortgage Credit Certificate is discontinued

Older Virginia buying guides — including earlier versions of this page — describe a Mortgage Credit Certificate (MCC) worth up to $2,000 a year in federal tax credit. That program is suspended and no longer available. Virginia Housing stopped issuing new MCCs on May 1, 2023; the last day to lock a loan with one was April 28, 2023. Certificates issued before that date remain valid for existing homeowners, but no new buyer can get one in 2026. If you see the MCC listed as an active first-time-buyer benefit, that source is out of date.

Program comparison at a glance

Source: Virginia Housing program pages, 2026.

Loan limits that apply in 2026

Assistance layers on top of an underlying mortgage, so the loan’s own limits set your ceiling.

• Conforming (conventional): The FHFA baseline is $832,750 for 2026, rising to $1,249,125 in high-cost areas.
• FHA: The 2026 floor is $541,287 and the ceiling is $1,249,125. Northern Virginia and D.C.-metro counties — Arlington, Fairfax, Loudoun, Prince William and the City of Alexandria — sit at the $1,249,125 ceiling.
• VA: No loan limit for eligible borrowers with full entitlement.
• USDA: No fixed loan limit, but the property must be in an eligible rural area and household income caps apply.

For a full breakdown of the FHA side, see FHA loan requirements for 2026.

Eligibility requirements

Exact thresholds vary by program and county, but most Virginia Housing assistance shares a common frame:

• First-time status: No ownership of a primary residence in the past three years (waived for repeat buyers in designated Areas of Economic Opportunity and for the Plus Second Mortgage).
• Income: Household income must fall within Virginia Housing’s published limits, which vary by locality and household size. The DPA Grant uses a lower income tier than the standard loan programs.
• Credit: Approved lenders generally look for a minimum score around 620, with better assistance terms at higher scores.
• Homebuyer education: A Virginia Housing homebuyer course is required. It runs a few hours and can be completed online.
• Primary residence: The home must be your primary residence, not an investment or vacation property.

Because caps shift by county, confirm the current sales-price and income limits for your area with a lender before you shop. A deeper walkthrough of the grant-and-loan landscape is in this Virginia down payment assistance guide.

Local city and county programs

Several localities run their own assistance on top of the state programs. Amounts and rules change with annual funding, so verify directly with each locality, but common options include:

• Virginia Beach — down payment and closing cost assistance for income-eligible buyers.
• Richmond — assistance through the city and partner nonprofits.
• Norfolk — down payment help for qualifying first-time buyers.

Local dollars can often layer with Virginia Housing assistance, which is how buyers assemble a low-cash-to-close deal. If you are focused on the coast, this roundup of Virginia Beach real estate agents is a useful starting point.

How to apply, step by step

1. Check your credit and budget. Pull your score and estimate your cash to close.
2. Complete Virginia Housing homebuyer education. You will need the certificate to close.
3. Get pre-approved with a Virginia Housing-approved lender. Not every lender offers these programs — confirm first. Compare options among the best mortgage lenders in Virginia and top lenders for first-time buyers.
4. Choose your loan and assistance stack. Your lender confirms which grant or second mortgage fits your income and loan type.
5. Shop within your price limit. Keep the county sales-price cap in mind.
6. Close. Grant funds are applied at closing; the Plus Second Mortgage records as a second lien.

Expect roughly 45–75 days from application to closing once you are under contract.

Combining programs with loan types

• FHA + DPA Grant: The 2.5% grant pairs with the low 3.5% FHA down payment — a common first-time combination.
• USDA or VA + CCA Grant: These zero-down loans pair with the closing cost grant to cut cash to close toward zero. See zero-down strategies.
• Conventional + DPA Grant: The 2% grant works with Virginia Housing’s conventional bond loan and its reduced mortgage-insurance options.
• Higher income + Plus Second Mortgage: When a grant is off the table, the repayable second covers the down payment instead.

Beyond the purchase

Owning in Virginia carries ongoing costs worth planning for now. Property taxes are set locally — this Virginia property tax explainer covers how bills are calculated, and if yours looks high, there is a step-by-step appeal guide. Budget for coverage using this Virginia homeowners insurance guide. Still deciding where to settle? Compare Virginia vs. North Carolina and Maryland vs. Virginia. For the wider national picture, see the 2026 first-time homebuyer programs overview.

Frequently asked questions

How much down payment assistance can a first-time buyer get in Virginia?

The Down Payment Assistance Grant is 2% of the purchase price on a Virginia Housing conventional loan and 2.5% on an FHA/government loan. A separate Closing Cost Assistance Grant adds up to 2% on USDA and VA loans. Neither grant is repaid.

Do I have to pay back Virginia Housing assistance?

The DPA and CCA Grants are true grants and are never repaid. The Plus Second Mortgage is different — it is a repayable second loan of up to 5% of the purchase price, with a 30-year fixed rate.

Is the Mortgage Credit Certificate (MCC) still available?

No. Virginia Housing suspended the MCC program on May 1, 2023, and no longer issues new certificates. Certificates issued before that date remain valid for existing homeowners, but new buyers in 2026 cannot get one.

Do I have to be a first-time homebuyer to qualify?

For the DPA Grant, generally yes — no primary-residence ownership in the past three years — with exceptions in designated Areas of Economic Opportunity. The Plus Second Mortgage is open to repeat buyers and higher-income buyers who do not qualify for the grant.

Can I combine multiple programs?

Yes. Buyers commonly stack a Virginia Housing loan with a DPA or CCA grant, and some local city or county programs can layer on top. Your lender confirms which combinations your income and loan type allow.

What are the 2026 loan limits in Virginia?

Conforming loans run to $832,750 statewide and $1,249,125 in high-cost areas. FHA runs from a $541,287 floor to a $1,249,125 ceiling, with Northern Virginia counties at the ceiling. VA and USDA loans have no fixed loan limit.

Sources: Virginia Housing; HUD; FHFA; Redfin Virginia; U.S. Census Bureau.