Down Payment Assistance in Virginia

What is down payment assistance in Virginia?

Virginia’s home prices swing widely, from the high-cost D.C. suburbs of Northern Virginia to far more affordable towns down toward the coast and the mountains, and the right down payment assistance can help close that gap no matter where you’re buying.

Homebuyers may be able to use down payment assistance (DPA) programs to help them purchase a property. Down payment assistance is made up of national, state, local, and employer-sponsored programs designed to support homebuyers who can afford a monthly mortgage payment but need help coming up with the upfront cash needed for a down payment and closing costs.

Offered by government agencies, nonprofits, and some private organizations, DPA provides financial support to help homebuyers cover the down payment, closing costs, or both. It helps to bridge the gap between what buyers have saved and the funding they need to buy.

It may also provide homebuyers with a financial cushion, so they don’t have to drain all of their savings to afford homeownership.

From the Blue Ridge Mountains to the Chesapeake Bay, Virginia homebuyers can tap into statewide, local, and community-based programs that help cover the upfront costs of purchasing a home.

Assistance typically comes in one of three forms: a grant (money you don’t repay), a forgivable loan (which is gradually forgiven the longer you stay in the home), or a low-interest loan. The right option depends on the program and your individual situation.

Whether you’re a first-time homebuyer in Virginia or returning to homeownership after years away, there may be money available to help make up the difference between how much you’ve saved and the amount you need to close on a home.  

How does down payment assistance work?

Every down payment assistance program has its own rules, but most follow a similar path from homebuyers researching their options to funding.

Research. The DPA landscape is larger than most people realize. In fact, there were more than 2,700 DPA programs as of July 2026, according to Down Payment Resource, a company that connects homebuyers to the programs. Assistance may be available at the state, county, city, or employer level, and different programs have different eligibility requirements. If one program doesn’t fit your situation, keep looking. There may be others that will.

Determine your eligibility. Common requirements include income limits, minimum credit scores, and property location restrictions. Understanding your financial profile, where you want to buy, and how long you plan to live in the home will help you identify which programs are worth pursuing.

Apply. Once you find a down payment program that fits your criteria and eligibility, you’ll submit an application and supporting documents. Expect to provide proof of income, personal identification, credit information, and details about the property you intend to purchase.

Get approved and receive funding. If your application is approved and your information verified, you’ll receive the assistance at closing. It’s typically applied directly toward your down payment, closing costs, or both, depending on the program’s terms.

It is important to note that most DPA programs have their own conditions, which may include having to repay the loan in part or full if you move early, sell, or refinance the home. Make sure to always review and understand the terms and conditions of any loan you use.

Additionally, some programs may run out of funding. That’s why it’s important to check availability and stay on top of deadlines.

Who qualifies for down payment assistance?

Many people don’t realize they may be able to qualify for down payment assistance. DPA isn’t just a tool for first-time and first-generation homebuyers or those with lower incomes.

The assistance is available for a wide variety of people in a range of financial situations. Nearly two-thirds, 62%, of current DPA programs serve homebuyers earning more than $100,000 a year and 11% have no income limits, according to Down Payment Resource.

Additionally, more than a third, 38%, of DPA programs don’t have a first-time homebuyer requirement.

There are DPA programs for: First-generation homebuyers, Native American homebuyers, veterans, educators, law enforcement, first responders, municipal employees, those who earn less than a certain threshold, and more. Some programs also exist for buyers who purchase properties in certain communities.

Some organizations also offer homeownership assistance programs for their employees, so make sure you check with your employer as well.

Types of down payment assistance

The majority of DPA programs fall into two categories: Second mortgages and grants.

Second mortgages are by far the most common form of down payment assistance, making up 56% of all programs, according to Down Payment Resource. This is a separate loan running alongside your primary mortgage, with its own monthly payment.

Second mortgages are often set up to be a deferred or forgivable loan to reduce the upfront cost. If you have a deferred loan, it means that it doesn’t have to be repaid until you sell, refinance, or move out. A forgivable loan is gradually forgiven if you live in the home for a set amount of time.

Grants make up 9% of DPA programs and are the most straightforward form of assistance. They’re a gift, with no repayment required under any circumstances. As always, read the terms carefully to make sure you understand any conditions attached.

Finding down payment assistance

Down Payment Resource offers an interactive search feature that allows you to search available DPA programs by location as well as by things like your occupation, military status, or disability status.

New American Funding (NAF) also offers a down payment assistance program called Pathway to Homeownership. Specifically available to first-time homebuyers, eligible borrowers may receive up to $6,000* in financial assistance. This money can be used to help with your down payment, closing costs, or other costs. It can also be combined with other DPA programs.

National down payment assistance programs

While there is not national database of nation-wide DPA programs available, there are several main ones that are notable. They include:

The Chenoa Fund

The Chenoa Fund is administered by CBC Mortgage Agency (a federally chartered tribal housing finance authority). It is one of the most accessible national DPA programs available because it drops two of the most common barriers to qualification. It has no income limits and no first-time homebuyer requirement.

The program covers the required 3.5% down payment on Federal Housing Administration (FHA) loans. The aid is structured either as a forgivable second mortgage or a repayable second mortgage, depending on the option selected.

Borrowers need a minimum 600 credit score to qualify. The program is available in all states except New York.

Since it works through a network of participating lenders nationwide, buyers can access it through their mortgage lender rather than applying directly.

The National Homebuyers Fund

The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance of up to 5% of the loan amount. It’s administered as a grant, meaning no repayment is required.

It has no first-time homebuyer requirement, making it available to repeat buyers who may not qualify for programs with that restriction. It works with FHA, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Conventional loans.

The credit score and debt-to-income requirements are flexible.

The NHF is available in most states and is accessed through a network of participating lenders rather than through a direct application to the fund itself.

Many of the national DPA programs are offered by various lenders and private non-profit organizations like the Homeownership Council of America.

Down payment assistance programs in Virginia

Virginia Housing is the state’s housing finance agency and the central source for statewide DPA programs. Virginia Housing doesn’t lend directly to buyers. Homebuyers apply through an approved participating lender, which will combine the assistance with the mortgage.

Virginia Housing offers the following assistance programs to help homebuyers in the state. The assistance programs can only be used with eligible Virginia Housing loans.

Down Payment Assistance Grant (DPA): This grant never needs to be repaid and can only be paired with eligible Virginia Housing loans.

Program requirements include:

• Must be a qualified first-time homebuyer or a repeat buyer purchasing a home in Areas of Economic Opportunity
• Must have a bond FHA/Conventional loan from Virginia Housing
• Must meet household income limits and sales price limits based on the geographic area of the home

Closing Cost Assistance (CCA) Grant: This grant provides up to 2% of your home’s purchase price. Funds may be used toward closing costs, Rural Housing Service (RHS) guarantees, or Veteran Affairs (VA) funding fees. This grant never needs to be repaid and can be paired with non-Virginia Housing assistance.

Program requirements include:

• Must be a qualified first-time homebuyer or a repeat buyer purchasing a home in Areas of Economic Opportunity
• Must have a bond Rural Housing Service (RHS) or Veterans Affairs (VA) loan from Virginia Housing
• Must meet household income limits and sales price limits based on the geographic area of the home

Plus Second Mortgage:: This program offers up to 5% of your home’s purchase price to be used toward down payment assistance. Certain credit qualified borrowers may also borrow 1.5% more than the purchase price and can also finance their closing costs using this loan if they have a credit score of 680 or higher. The second mortgage is offered as a 30-year, fixed-rate loan, with no pre-payment penalty. 

Program requirements include:

• Must be a qualified first-time homebuyer or a repeat buyer
• Must have a non-bond or bond FHA/Conventional or non-bond Conventional No MI loan from Virginia Housing
• Must meet household income limits and sales price limits based on the geographic area of the home

Virginia DHCD Down Payment Assistance Programs

The Virginia Department of Housing and Community Development (DHCD) is a state government agency that administers statewide housing and community-development programs, including down payment assistance for eligible first-time homebuyers. Rather than lend directly, DHCD delivers DPA through approved local providers, including nonprofits and local housing organizations. 

Virginia DHCD offers two programs to help homebuyers in the state. Both programs offer flexible gap financing to first-time homebuyers earning up to the approved area median income (AMI). This is the midpoint of local earnings for an area, calculated by the U.S. Department of Housing and Urban Development. The assistance comes in the form of a deferred loan with no payments required or interest accrued during the loan period.

The HOMEownership Down Payment and Closing Cost Assistance Program (DPA): This program provides up to 15% of the sales price, plus up to $2,500 for closing costs. The maximum assistance is $40,000. The program is administered by local providers.

Program requirements include the following:

• Must be first-time homebuyer
• Household income limit of at or below 80% AMI
• Assistance is based on financial need, and is offered on a first-come, first-served basis; subject to local funding
• Buyers purchasing in a designated high-cost or chronically economically depressed locality may receive up to 15% of the sales price
• Assistance is fully forgiven after the required affordability period: Five years for up to $14,999 in assistance, and 10 years for up to $40,000 in assistance
• Median FICO score of at least 620
• Homebuyer must complete a homeowner education course
• Must have signed purchase contract before funds can be reserved
• Can be used in combination with conventional, FHA, VA, USDA, and Habitat loans
• Maximum purchase price must be at or below 95% of the HUD-established area median sales price

The Virginia Pilot Down Payment Assistance Program: This program provides up to $50,000 in down payment and closing costs assistance, which is structured as a 0% forgivable second mortgage with no monthly payments that is fully forgiven after 15 years of owner occupancy. An additional amount of up to $2,500 may be applied to eligible closing costs. The program is administered by local providers.

Program requirements include the following:

• Direct assistance, including closing costs, cannot exceed 30% of the home’s sales price
• Must be first-time homebuyer
• Total household income must be at or below 60% of AMI
• Homebuyer must complete a homeowner education course
• Must have signed purchase contract before funds can be reserved
• Median FICO score of at least 620
• Eligible first mortgages include FHA, VA, USDA and Habitat loans
• Must occupy home as a primary residence for 15 years
• Loan is forgiven at a rate of 1/15 each year, after one full year of occupancy

Beyond Virginia’s statewide programs, several Virginia cities and counties have established their own DPA programs. Many of these can be stacked with state assistance. That means some eligible buyers may be able to combine multiple programs and significantly increase their total help.

This can help them to cover their down payment, closing costs, or simply have a little left over as a financial cushion.

Fairfax County down payment assistance program

Fairfax County sits just outside Washington, D.C., known for top-rated schools, leafy suburbs, and easy access to the capital’s job market. Home to a mix of established neighborhoods and growing hubs like Tysons, it's been a favorite for buyers wanting stability, strong schools, and proximity to D.C.’s opportunities. (Counties like this are typically part of a larger metropolitan area — in this case, Greater Washington, D.C.)

Fairfax County down payment assistance program includes:

Fairfax County Down Payment Loan Program: This down payment assistance program provides up to $50,000 as a shared equity, deferred second mortgage to qualified first-time homebuyers. The loan has no monthly payments. The funds may be used to reduce a first mortgage principal amount, pay closing costs, an interest rate buydown, or buyout private mortgage insurance.  

Program requirements include:

• Household income must be at or below 80% AMI
• Must be first-time homebuyer
• Must qualify for and use a Virginia Housing first mortgage
• Must complete a session with a HUD-certified housing counselor
• Must live in the home as a primary residence for the duration of the loan
• Shared equity commitment upon repayment, which will be calculated from the original purchase price of the home
• Funds are limited and are first-come, first-served

Prince William County down payment assistance program

Prince William County sits south of Fairfax along the D.C. corridor, offering more affordable housing while staying within commuting distance of the capital's job market. Home to growing communities like Woodbridge and Manassas, it’s a solid choice for buyers wanting more space and value without leaving Northern Virginia behind. (Counties like this are typically part of a larger metropolitan area — in this case, Greater Washington, D.C.)

Prince William County down payment assistance program includes:

First-Time Homebuyers Program (FTHB): The program offers between 23% to 33% of the approved sales price in down payment and closing costs assistance to income-eligible first-time homebuyers. The assistance is provided as a 30-year deferred second mortgage, which is due when the property is sold, transferred, no longer used as the primary residence, or the primary loan is refinanced.

Program requirements include:

• Buyers must be currently living or working in the Prince William Area (Prince William County, the cities of Manassas or Manassas Park)
• Properties must be located within Prince William County, or the cities of Manassas or Manassas Park
• Household income must be at or below 80% AMI
• Every person expected to reside in the proposed property must be a U.S. citizen or qualified person legally admitted to the U.S. with valid USCIS documents
• All adults in the household must have completed financial education and housing counseling with the county
• Minimum credit score of 640 for all adult household members

City of Alexandria down payment assistance program

Alexandria sits along the Potomac River just south of Washington, D.C., known for its cobblestone streets, historic Old Town, and a walkable waterfront lined with shops and restaurants. Its close-in location and rich colonial history make it a popular choice for buyers wanting D.C. access with small-town character, even at a premium compared to farther-out suburbs. (Cities like this are typically part of a larger metropolitan area — in this case, Greater Washington, D.C.)

Alexandria down payment assistance program includes:

Flexible Homeownership Assistance Program (FHAP): The program provides up to $50,000 in assistance for income-eligible first-time buyers purchasing a property marketed by the city of Alexandria’s Office of Housing. The funds are provided as a 0% interest, deferred payment loan. They can be used toward down payments, principal reduction, and closing costs. 
Program requirements include:

• Must be a first-time homebuyer
• Must have lived or worked within the city limits for at least six months prior to application
• Must purchase a home through the Affordable Set-Aside Homebuyer Program, Neighborhood Stabilization Program, and Resale Restricted Homeownership Program only.
• Applicants are strongly recommended to receive a first mortgage from a participating lender
• Must pay a minimum of $2,000 or $3,000 of the down payment costs.
• Must meet household income limit
• Properties are available on a first-come, first-served basis
• Must secure lender pre-approval and Virginia Housing training certificate before writing an offer to purchase

These are some of the main down payment assistance programs available across Virginia. However, there may be more programs available to you based on your location in the state or your occupation.

For instance, some towns or cities may offer down payment assistance specifically for first responders or teachers. Make sure to do your own research to see if there is a program that may be right for you. And be aware that certain programs may only be available until all of the funding is used.

How to apply for Virginia down payment assistance

The application process for different DPA programs may change. However, some general application steps include:

1. Check your eligibility. Review income limits, credit requirements, and first-time buyer status at virginiahousing.com. For local programs, contact the relevant city or county housing office.  
2. Find a participating lender. Virginia Housing programs are only available through approved lenders in their network.
3. Get pre-qualified. Your lender reviews your income, credit, and debts to determine which programs you may qualify for to receive funding.
4. Complete homebuyer education. Enroll in an approved homebuyer education course and keep your completion certificate for closing.
5. Find your home. Work with a licensed agent to locate a qualifying Virginia property. Your lender will confirm if it meets program requirements.
6. Close on your home. Your lender packages your first mortgage and DPA together. Assistance funds are applied at settlement.

Virginia down payment assistance FAQs

^{Program details reflect August 2026 information. Down payment assistance programs are subject to change and depend on current funding availability. Always confirm income limits, eligibility requirements, and program details with your lender or the applicable program administrator before applying.}

^{*Credit up to $6,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $6,000 in some cases where other concessions have been made to the consumer.}