Virginia First-Time Home Buyer Programs of 2023

Hopeful first-time home buyers in Virginia have access to state programs that can help them make a down payment, pay closing costs or qualify for a home loan. For more than 50 years, Virginia Housing (formerly Virginia Housing Development Authority, or VHDA) has worked with lenders throughout the state to make homeownership a reality for thousands of residents.

Virginia Housing highlights and eligibility requirements

Virginia Housing programs offer first-time home buyers in Virginia helpful benefits, including down payment grants and federal tax breaks.

» MORE: Tips for first-time home buyers

Program highlights

• Down payment and closing cost assistance grants.

• A conventional loan with 3% down and no mortgage insurance.

• Offers government-backed loans (some with zero down payment) that can be combined with other Virginia Housing grants and loans.

Eligibility

• Required credit score varies by loan or grant program; lowest is 620.

• Haven’t owned and occupied a home in the past three years (except in certain areas).

• Maximum income and loan limits vary depending on a home’s location and if you’re combining with a grant.

• The home must be your primary residence.

• Many loans require applicants to complete a free homeownership education class.

Virginia Housing first-time home buyer programs

Closing Cost Assistance Grant

Best for:

Closing cost funds you don’t have to repay

What you need to know:

This grant is eligible for home buyers who have a Rural Housing Service or Veterans Affairs loan through Virginia Housing. First-time buyers qualify, as well as repeat buyers who are purchasing in a designated Area of Economic Opportunity. The grant can cover closing costs up to 2% of your home’s purchase price and does not need to be paid back. Income and sales price limits apply.

Down Payment Assistance Grant

Best for:

Down payment funds you don’t have to repay

What you need to know:

Qualified first-time buyers can receive 2% to 2.5% of a home’s purchase price to apply to a down payment — no repayment required. The grant must be combined with an eligible Virginia Housing loan, and household income limits are considered.

Granting Freedom

Best for:

Service-disabled veterans

What you need to know:

For service members or veterans with service-connected disabilities, this program offers a grant of up to $8,000 to pay for home modifications that increase accessibility, such as widening doorways and adding wheelchair ramps.

Virginia Housing Conventional

Best for:

Low down payment

What you need to know:

This program is for first-time buyers or repeat homeowners. The down payment can be 3% or even lower, when combined with a Virginia Housing down payment grant. While this program requires a borrower to pay for mortgage insurance, the premium is discounted. You’ll need a credit score of at least 640 to qualify.

Virginia Housing Conventional No Mortgage Insurance 

Best for:

Low mortgage insurance

What you need to know:

Identical to the Virginia Housing Conventional program in most respects, but you won’t have to pay mortgage insurance. To qualify, your credit score needs to be slightly better: 660.

Virginia Housing Plus Second Mortgage

Best for:

Down payment or closing cost assistance

What you need to know:

When combined with an eligible first mortgage from Virginia Housing, this 30-year fixed-rate loan can cover the upfront cost of your down payment. For borrowers who meet credit qualifications, it can also cover some or all of the closing costs. Unlike the Closing Cost Assistance Grant or Down Payment Assistance Grant, this is a loan, so you do have to pay it back. However, there’s no prepayment penalty. Income and other eligibility requirements apply.

FHA

Best for:

Government-backed loans, low down payment

What you need to know:

FHA loan qualifications are more lenient than those for conventional loans. Through Virginia Housing, credit scores as low as 620 may qualify. While that’s a stricter requirement than some FHA lenders, Virginia Housing makes it easy to package an FHA loan with additional grants and loans from the state. The standard 3.5% FHA down payment can be brought down to as low as 1% with Virginia Housing’s down payment assistance grant, or to 0% when combined with the Plus Second Mortgage.

USDA (Rural Housing Service)

Best for:

Rural borrowers

What you need to know:

USDA loans also offer zero down payments on homes in rural and suburban areas. A USDA loan through Virginia Housing can be combined with the Closing Cost Assistance Grant. Virginia Housing participates in a pilot program that allows the financing of existing manufactured housing up to 10 years old. USDA previously financed only new manufactured housing.

Talking to a lender, preferably at least a couple, will get you started. Lenders affiliated with Virginia Housing know all the ins and outs and can help you navigate the process. Why talk to more than one? Because terms, interest rates and even customer engagement can vary from lender to lender. It’s satisfying to find someone you like to work with who also looks out for your best interests.

Visit VirginiaHousing.com for program details, or use its online lookup tool to find a Virginia Housing lender by ZIP code.

» MORE: The best homeowners insurance in Virginia

First-time home buyer programs near Virginia

• Kentucky first-time home buyer programs

• Maryland first-time home buyer programs

• North Carolina first-time home buyer programs

• Tennessee first-time home buyer programs

• West Virginia first-time home buyer programs

National first-time home buyer programs

Since you’re doing a bit of research, it can’t hurt to look into national programs aimed at potential home buyers with lower incomes. You’ll find options for loans with low or no down payments.