Homebuyer Programs in Fredericksburg, VA (2026)

Last updated March 28, 2026 | Population: 29,000 | Median home price: $470,000 | Est. closing costs: $9,500 - $14,000

Skyline of Fredericksburg, VA

Fredericksburg is a historic city located between Washington, D.C. and Richmond along the I-95 corridor, known for its Civil War battlefields and charming downtown. With a median home price of around $470,000, the market reflects its growing popularity as a commuter-friendly city. The Fredericksburg Direct Homeownership Assistance Program covers specific closing costs and up to 50% of down payment costs for eligible buyers purchasing within city limits. The Virginia Housing DPA Grant adds 2% to 2.5% of the purchase price as a free grant, while the DHCD HOMEownership DPA offers up to $40,000 and the Virginia Pilot DPA provides up to $50,000 for income-eligible households. Greater Fredericksburg Habitat for Humanity also provides affordable homeownership opportunities in the area.

Top Homebuyer Programs in Fredericksburg

Fredericksburg Direct Homeownership Assistance Program
Type:
Grant
Amount:
Covers specific closing costs and up to 50% of down payment costs
First-time only:
Yes
FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No
DHCD HOMEownership Down Payment Assistance Program
Type:
Deferred Loan
Amount:
Up to 10% to 15% of the sales price plus up to $2,500 for closing costs. Maximum assistance of $40,000.
First-time only:
Yes
Virginia Down Payment Assistance Pilot Program
Type:
Deferred Loan
Amount:
Up to $50,000
First-time only:
Yes
Virginia Housing Closing Cost Assistance Grant
Type:
Grant
Amount:
Up to 2% of the purchase price
First-time only:
Yes
Virginia Housing Down Payment Assistance Grant
Type:
Grant
Amount:
2% to 2.5% of the purchase price
First-time only:
Yes
Virginia Housing SPARC Program
Type:
Zero-Interest Loan
Amount:
1 percentage point reduction on Virginia Housing first mortgage interest rate
First-time only:
Yes

How to Apply

  1. Step 1:

    Check your eligibility. The Fredericksburg Direct Homeownership Assistance Program serves low to moderate income first-time buyers. The home must be within the 22401 zip code (City limits).

  2. Step 2:

    Complete homebuyer education through a HUD-approved housing counseling agency.

  3. Step 3:

    Contact the City of Fredericksburg Housing Department to apply for the Direct Homeownership Assistance Program, which covers closing costs and up to 50% of down payment.

  4. Step 4:

    Contact a Virginia Housing-approved lender to access the state DPA Grant (2% to 2.5% of purchase price) and explore other state programs.

  5. Step 5:

    Explore additional state assistance through a DHCD-approved provider for the HOMEownership DPA (up to $40,000) or Pilot Program (up to $50,000).

  6. Step 6:

    Get pre-approved, find a home within the 22401 zip code, and complete the application process.

Frequently Asked Questions

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