Purchasing your first home is an exciting milestone, but it can also feel overwhelming—especially when it comes to financing. Thankfully, Virginia offers a variety of first-time homebuyer programs designed to make the process more affordable and accessible. From down payment assistance to reduced interest rates, these programs can help bridge the gap between your dream of homeownership and reality. Below, I explore the most impactful programs available in Virginia today.

Virginia Housing (VHDA) First-Time Buyer Programs

The Virginia Housing Development Authority (VHDA)—now commonly known as Virginia Housing—is the leading provider of homebuyer assistance in the state. Their programs target first-time buyers, as well as those who have not owned a home in the past three years.

Virginia Housing Loan Programs

Virginia Housing offers fixed-rate mortgage options that often come with below-market interest rates. These mortgages are available to first-time homebuyers across the state, and they can be paired with down payment and closing cost assistance.

• • Eligibility: Income and purchase price limits apply depending on county and household size.

  • Benefits: Affordable monthly payments, fixed interest rates, and flexible qualifying guidelines.

Down Payment Assistance (DPA) Grant

One of the biggest hurdles for new buyers is saving for a down payment. Virginia Housing’s DPA grant helps cover part of the required down payment, with no repayment necessary.

• • Amount: Up to 2.5% of the home’s purchase price.

  • Requirement: Must be used in combination with an eligible Virginia Housing loan.

  • Advantage: Grants do not need to be repaid, making this a true gift toward homeownership.

Closing Cost Assistance Grant

In addition to down payment help, Virginia Housing also provides grants to cover closing costs, which can otherwise total thousands of dollars.

• • Amount: Typically up to 2% of the purchase price.

  • Benefit: Reduces out-of-pocket expenses at settlement, allowing buyers to keep more cash reserves for moving or emergencies.

Virginia Housing Plus Second Mortgage

This program allows first-time buyers to pair their first mortgage with a second mortgage loan that covers the entire down payment. Unlike the DPA Grant, this is a loan, but it spreads repayment over time.

• • Benefit: Eliminates the upfront cash barrier.

  • Repayment: Paid monthly alongside your first mortgage.

Federal Programs for Virginia First-Time Homebuyers

In addition to state-based assistance, Virginia homebuyers may also take advantage of federal programs that make homeownership more affordable.

FHA Loans

The Federal Housing Administration (FHA) insures loans with lower down payment requirements—ideal for buyers with limited savings.

• • Down Payment: As little as 3.5%

  • Credit Score: Generally requires a score of 580+ for full benefits.

  • Benefit: Easier qualification standards for buyers with modest income or credit challenges.

USDA Loans

For buyers in rural or suburban areas of Virginia, USDA loans offer 100% financing.

• • Down Payment: None required

  • Eligibility: Household income must not exceed area limits; property must be in an eligible rural area.

  • Benefit: Affordable, no-money-down option with low interest rates.

VA Loans

Virginia has a large military community, and VA loans are a powerful option for veterans, active-duty service members, and some surviving spouses.

• • Down Payment: None required

  • Mortgage Insurance: Not required (saves hundreds monthly)

  • Benefit: Flexible credit standards and competitive rates, often the best choice for those who qualify.

Local First-Time Homebuyer Assistance Programs

In addition to statewide support, many Virginia counties and cities offer their own first-time buyer programs.

Fairfax County First-Time Buyer Program

• • Offers affordable units through the First-Time Homebuyers Program (FTHB).

  • Buyers gain access to properties priced below market rate, plus eligibility for assistance with closing costs.

Arlington County Moderate-Income Purchase Assistance Program (MIPAP)

• • Provides deferred-payment second mortgages of up to 25% of the home’s purchase price.

  • Designed to help moderate-income families afford Arlington’s competitive housing market.

City of Alexandria Homeownership Assistance Program

• • Offers up to $50,000 in assistance for eligible buyers.

  • Funds can be used for down payment or closing costs.

Loudoun County Down Payment/Closing Cost Assistance Program

• • Provides loans for first-time buyers purchasing in Loudoun County.

  • Loan amounts vary depending on household income and need.

Who Qualifies as a First-Time Homebuyer in Virginia?

In most cases, a first-time homebuyer is defined as someone who has not owned a home in the past three years. However, exceptions apply:

• Veterans are often considered first-time buyers regardless of prior ownership.

• Displaced homemakers or single parents who previously owned with a spouse may also qualify under special rules.

Eligibility typically depends on factors such as income, credit score, and purchase price limits, all of which vary by program and location.

Steps to Access First-Time Buyer Assistance in Virginia

1. Take a Homebuyer Education Class
   Virginia Housing requires first-time buyers to complete a free online or in-person course covering budgeting, mortgage basics, and the buying process.

2. Get Pre-Approved with a Participating Lender
   Only certain lenders are authorized to originate Virginia Housing loans and apply grant funds.

3. Select Your Program Combination
   Many buyers layer multiple benefits, such as combining a VHDA mortgage with a DPA Grant and MCC for maximum savings.

4. Work with a Knowledgeable Real Estate Agent - Me!
   An experienced agent can help you navigate program requirements, find eligible properties, and negotiate terms that align with your financial goals.

The Bottom Line

Becoming a homeowner in Virginia is more achievable than many first-time buyers realize. With down payment assistance, tax credits, reduced interest rates, and local grants, these programs make it possible to secure a home even without perfect credit or a large savings account. Whether you qualify for Virginia Housing programs, federal FHA or VA loans, or county-based assistance, the resources available can put you on the fast track to owning your first home.