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About the Virginia Housing Down Payment Assistance Grant
The Virginia Housing Down Payment Assistance Grant is a gift of 2% or 2.5% of the home price that first-time buyers never repay. Virginia Housing, the state housing finance agency, funds it through approved lenders. The grant equals 2.5% with an FHA Bond first mortgage or 2% with a Conventional Bond loan, figured on the lesser of sales price or appraised value. It covers down payment only, not closing costs.
To qualify, total household income must fall under the grant's lower limits, effective August 1, 2026. Outside named metros the limit is $90,000 for one or two people and $103,000 for three or more. Richmond-area limits are $96,000 and $110,000, Hampton Roads limits are $97,000 and $113,000, and Northern Virginia limits are $148,000 and $174,000. Income counts every household member, not just borrowers, and Virginia Housing's higher standard and targeted-area limits do not apply. Sales price caps run from $500,000 statewide to $800,000 in Northern Virginia. You must not have owned and occupied a primary residence in the last 3 years, unless you buy in a federally targeted Area of Economic Opportunity. Minimum credit is 620 for FHA Bond and 640 for Conventional Bond, and the maximum debt-to-income ratio is 50% with automated approval.
The grant carries no interest, no lien and no repayment, but you must still put down 1% of the price, which can come from a gift. FHA Bond loans are 30-year fixed only, and both bond first mortgages are subject to federal recapture rules. A standard FHA loan needs 3.5% down and Conventional needs 3%, so the grant cuts your share to 1% either way. It cannot be combined with Virginia Housing's Plus Second Mortgage or Closing Cost Assistance Grant.
How much assistance
Eligibility
- Income limits: DPA Grant lower limits effective 8/1/2026, all household member income: $90,000 (1-2 people) / $103,000 (3+) in most of Virginia; Richmond area $96,000 / $110,000; Charlottesville $95,000 / $109,000; Norfolk-Virginia Beach-Newport News $97,000 / $113,000; Culpeper $98,000 / $115,000; Northern Virginia $148,000 / $174,000.
- First-time buyer required: Yes — Has not owned and occupied a primary residence in the last 3 years. Waived for purchases in a federally targeted Area of Economic Opportunity.
- Credit score minimum: 620
- Geographic restrictions: Available statewide in Virginia.
- Homebuyer education required: Yes
How to Apply for Virginia Housing Down Payment Assistance Grant
Step 1: Check your income and price limits
Look up your area on Virginia Housing's Income and Sales Price Limits flyer, effective August 1, 2026, and use the DPA/CCA Grant column, not the higher bond column. Count income from every household member, including adults who are not on the loan. Outside named metros the caps are $90,000 for one or two people, $103,000 for three or more, and a $500,000 sales price. Call 877-843-2123 if your county is unclear.
Step 2: Complete a homebuyer education course
Every first-time buyer on a Conventional Bond or FHA Bond loan must finish an approved course before loan approval. Virginia Housing's free course runs about 8 hours online at your own pace, or you can attend a free in-person class. A HUD-approved counseling agency course, Fannie Mae Framework or Freddie Mac CreditSmart also counts, but Fannie Mae HomeView does not. The certificate stays valid for 2 years.
Step 3: Choose a Virginia Housing-approved lender
Only lenders approved by Virginia Housing can reserve the grant. Search the lender list at virginiahousing.com/homebuyers/find-lender, or answer a few questions in the Lending Wizard at virginiahousing.com/lendingwizard. Ask each lender whether it originates FHA Bond and Conventional Bond loans, since the grant works only with those two products. It is not available with Virginia Housing VA, RHS or non-bond loans, refinances, or any non-Virginia Housing first mortgage.
Step 4: Get pre-approved for a bond loan
Your lender checks credit, income and debts against both the first mortgage and grant rules. FHA Bond requires a 620 score for all borrowers, and Conventional Bond requires 640 with automated approval. The maximum debt-to-income ratio is 50% with automated approval. Be ready to prove first-time buyer status, because lenders review your signed affidavit, application and credit report, and may ask for 3 years of tax returns or rent records.
Step 5: Make an offer and lock the grant
Find a single-family home, townhome or approved condo priced under your area cap, from $500,000 statewide to $800,000 in Northern Virginia. FHA Bond also allows qualifying manufactured homes. Once your offer is accepted, the lender reserves the grant with your rate lock. The grant expires the same day as the lock, and extensions follow the first mortgage up to 60 days, so plan your closing date carefully.
Step 6: Sign the award letter and close
Before closing, you sign a DPA Grant Award Letter, and FHA Bond buyers also sign an Obligation Letter. Your lender advances the grant at closing, and Virginia Housing reimburses the lender when it buys the first mortgage. The Closing Disclosure must list the Virginia Housing DPA Grant separately. You cannot receive cash back beyond your verified earnest money deposit and fees paid outside of closing.
Real Cost Example
On a $400,000 home in Richmond, close to the city's median price, an FHA Bond loan requires 3.5% down, or $14,000. The Virginia Housing DPA Grant pays 2.5% of the price, or $10,000, leaving the buyer's required 1%, or $4,000. A Conventional Bond loan works out the same at this price: 3% down is $12,000, the 2% grant is $8,000, and the buyer still brings $4,000.
Estimated closing costs in the Richmond area run $8,000 to $12,000, and the grant cannot pay any of them. That puts total cash to close at roughly $12,000 to $16,000 before seller credits. A Richmond household of two must earn $96,000 or less, or $110,000 for three or more, and the $400,000 price sits well under the $550,000 Richmond-area cap.
A buyer at or below 80% of area median income may also qualify for FHLBank Atlanta's First-Time Homebuyer Product, up to $17,500 for down payment and closing costs through a member lender. Paired with the $10,000 grant, that is up to $27,500 in combined help, enough to cover the Richmond closing cost estimate. Virginia Housing allows outside assistance under first mortgage rules.
Combining With Other Programs
The Virginia Housing DPA Grant can be combined with acceptable non-Virginia Housing down payment assistance under the first mortgage's rules. FHLBank Atlanta's First-Time Homebuyer Product offers up to $17,500, and its Community Partners Product offers up to $20,000 for educators, first responders, health care workers and veterans, both through member lenders for households at or below 80% of AMI. The grant also works with Virginia Housing's SPARC rate program and, on Conventional Bond loans, its Community Land Trust property option.
The grant cannot be stacked with Virginia Housing's Plus Second Mortgage or its Closing Cost Assistance Grant, which serves VA Bond and RD Bond borrowers instead. It also cannot be used with Virginia Housing VA, RHS or non-bond loans. Local second mortgages on an FHA Bond loan need Virginia Housing's Exhibit LL, except FHLB funds. Call Virginia Housing at 877-843-2123 to confirm a specific combination before you sign a contract.
Seller credits are another way to cover closing costs, within FHA, Fannie Mae and Freddie Mac limits on interested party contributions. Several Virginia cities, including Norfolk, Chesapeake and Portsmouth, run their own down payment programs, so check your city housing office. A gift from a relative can also cover the 1% minimum down payment the grant requires.
Pros and Cons
The biggest advantage is that the grant is free money: 2.5% of the price with FHA Bond or 2% with Conventional Bond, with no interest, no lien and no repayment. On a $400,000 home that is $10,000 that never has to be paid back, unlike Virginia Housing's Plus Second Mortgage, which is a second loan. It cuts the buyer's own down payment to 1%, and that 1% can be a gift. It also pairs with outside help such as FHLBank Atlanta's $17,500 First-Time Homebuyer Product, and it works with SPARC.
The biggest limitation is the income cap. The grant uses Virginia Housing's lower DPA limits, $90,000 for one or two people outside named metros, which is $22,000 below the standard bond limit of $112,000, and every household member's income counts. The grant pays down payment only, so $8,000 to $12,000 in Richmond-area closing costs remain. Only FHA Bond and Conventional Bond loans qualify, and both carry federal recapture rules. Buyers over the limit should consider the Plus Second Mortgage, which uses the higher first mortgage limits, or Virginia Housing's standard loans.
Frequently Asked Questions
Do I have to pay back the Virginia Housing down payment grant?+−
How much is the Virginia Housing down payment assistance grant?+−
What are the income limits for the Virginia Housing DPA grant in 2026?+−
Can a repeat buyer get the Virginia Housing grant?+−
Can I use the Virginia Housing grant with a VA or USDA loan?+−
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Program details last verified: October 17, 2026