Down Payment Path

Down Payment Assistance Programs in Virginia

Virginia provides a variety of programs to help homebuyers manage the upfront costs of purchasing a home. These initiatives are available to both first-time and repeat buyers, making homeownership more accessible across the Old Dominion State.

VHDA Down Payment Assistance (DPA) Grant

The Virginia Housing Development Authority (VHDA) Down Payment Assistance (DPA) Grant provides financial aid to eligible homebuyers for down payments and closing costs.

  • Offers up to 2.5% of the home’s purchase price as a grant.
  • Funds do not need to be repaid.
  • Pairs with VHDA’s affordable mortgage products, including FHA, VA, USDA, and conventional loans.
  • Open to buyers meeting income and purchase price limits.

VHDA Plus Second Mortgage

The VHDA Plus Second Mortgage program provides an additional financing option for buyers needing further assistance.

  • Offers a second mortgage for up to 5% of the home’s purchase price.
  • Features a low interest rate and manageable monthly payments.
  • Can be combined with VHDA primary mortgage options.

USDA Rural Development Loans

For buyers in rural areas of Virginia, the USDA Rural Development Loan offers affordable financing with no down payment requirement.

  • Open to low- and moderate-income buyers in USDA-designated rural areas.
  • Features competitive interest rates and flexible credit requirements.
  • Can be combined with VHDA assistance programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program offers significant tax savings for homebuyers, reducing the overall cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their annual mortgage interest.
  • Pairs with VHDA loans and down payment assistance programs.
  • Income and purchase price limits apply but accommodate a wide range of buyers.

Local Assistance Programs

Several cities and counties in Virginia offer additional resources to help buyers with upfront costs.

  • Programs in areas like Richmond, Virginia Beach, and Arlington provide grants or low-interest loans for down payments and closing costs.
  • Some local initiatives target buyers in revitalization zones or provide enhanced benefits for educators, first responders, and public service workers.
  • Eligibility and funding levels vary based on location and program specifics.

Virginia’s down payment assistance programs are designed to reduce financial barriers, making homeownership more attainable for a wide range of buyers. Whether you’re purchasing your first home or upgrading, these resources can help you achieve your dream of owning a home in the Old Dominion State.