Virginia first-time home buyer programs: who qualifies

Virginia's first-time home buyer program is run by Virginia Housing, the state housing agency, through approved lenders. It offers 30-year fixed-rate mortgages, a down payment grant or a closing cost grant you never repay, and a Plus Second Mortgage you repay monthly. Your household must earn under the income limit, the most it can earn and still qualify, for the home's area.

What loans does Virginia Housing offer?

Virginia Housing offers home loans of four types, all 30-year fixed-rate mortgages: the interest rate stays the same for all 30 years. You get one through a lender on its approved list, not from the agency itself. The down payment is the part of the price you pay up front, and the credit score is the number lenders use to judge how you have handled debt:

Most of these loans come in two versions. A bond loan is paid for with bonds the agency sells, which keeps its rate low. It is only for first-time buyers, people who haven't owned and lived in a home in the past three years, and it has income and price limits. A non-bond loan is open to repeat buyers too, with higher income limits.

With a bond loan, you could owe a one-time federal recapture tax when you sell. That happens only if you sell within nine years, the home has gained value and your income has risen above set limits. Virginia Housing's page has a calculator that shows whether you would owe it. Check the federal side of each loan too: what an FHA loan requires and who can get a USDA loan.

What down payment and closing cost help is there?

Virginia Housing offers three kinds of help, and you can use only one of them on a home. Closing costs are the fees you pay on the day you sign the final papers, on top of the down payment:

The down payment grant uses the lower of the price and the appraised value, which is what an appraiser hired for the loan says the home is worth. You can add down payment help from outside Virginia Housing to a grant if your first loan's rules allow it.

If every borrower has a credit score of 680 or more, the Plus Second Mortgage can be larger. It can then be 4.5% on a conventional loan or 5% on an FHA loan. The extra 1.5% goes toward closing costs. Using the Plus Second Mortgage adds 0.125% to the interest rate of a conventional first loan, or 0.25% to an FHA first loan. The second loan gets the same rate as the first loan, including that added amount.

Example. Say you buy a $300,000 home with an FHA bond loan, and it appraises at $300,000. The FHA down payment is 3.5%, or $10,500. A 2.5% grant gives you $7,500, so you bring the other $3,000 plus your closing costs. A Plus Second Mortgage would cover the whole $10,500 instead, but you would repay it each month.

What are the income and price limits?

Virginia Housing's limits for applications from August 1, 2026 depend on the area where the home is. For the grants and bond loans, they count the yearly income of everyone in your household:

Find your county or city in the area list on the limits page before you start. For the non-bond loans, the limit is $245,000 in the Washington area and $175,000 everywhere else. That limit counts only the income your lender uses to qualify you for the loan. There is no price limit, but the loan can't be larger than the limit set by whoever backs it, such as the FHA.

The limits are higher in a targeted area, which Virginia Housing calls an Area of Economic Opportunity, and you don't have to be a first-time buyer there. Under federal tax law, a targeted area is one of two things. The first is a census tract, a small neighborhood area the Census Bureau draws, where at least 70% of families earn 80% or less of the state's median family income. The second is an area of long-term economic hardship that the state names and the federal government approves. Enter the home's address in the agency's map to check.

Do you need a homebuyer class?

Ask your lender whether your loan requires one. Virginia Housing's homebuyer classes are free, in person or online, and the online course takes about eight hours. A housing counselor approved by HUD, the U.S. Department of Housing and Urban Development, can also help you get ready; find one with the Consumer Financial Protection Bureau's counselor search. Before you book, compare what homebuyer classes cover.

Can you buy through a community land trust in Virginia?

Yes, and Virginia Housing lends on these homes. With a community land trust, a nonprofit owns the land and you buy only the house, so the price is lower. You lease the land, often for 99 years, and when you sell, you sell at a set price so the home stays affordable. Virginia Housing finances homes from five trusts:

• Maggie Walker Community Land Trust, in the Richmond area
• Virginia Statewide Community Land Trust, anywhere in Virginia, including the Washington area
• Piedmont Community Land Trust, in the Charlottesville area
• Lighthouse Beloved Community Land Trust, in the Lynchburg area
• New River Home Trust, in Montgomery County and the town of Blacksburg

Contact the trust for the area you want, such as the Maggie Walker Community Land Trust, and ask how to apply for its homes. To weigh the resale rules first, see how land trust homes work.

Where can you find lower-priced homes for sale in Virginia?

Some local governments sell homes below market price to buyers under an income limit. In Fairfax County, for example, the Affordable Dwelling Unit program sells homes to first-time buyers earning up to 70% of the area median income, the middle income in the area. Its homes are priced from the low $100,000s to $300,000, and buyers must earn at least $25,000. Its Workforce Dwelling Unit program sells homes from $250,000 to buyers earning 70% to 120% of the area median income.

See the Virginia homes for sale you can apply for now on our Virginia page, or search homes for sale in every state. If you'd rather rent for now, find low-income apartments in Richmond.

How do you avoid home buyer grant scams?

The Federal Trade Commission says the government doesn't call out of the blue about grants, and no government agency will ask you to pay a fee to get one. Virginia Housing's grants come only through its approved lenders, at closing. To check an offer, call Virginia Housing at 877-843-2123.

How do you apply, step by step?

1. Call a lender on Virginia Housing's approved list, or call the agency at 877-843-2123, and ask how much you could borrow and which help you qualify for.
2. Ask which loan and which help fit your income, credit score and the area where you want to buy.
3. Check the address on the Areas of Economic Opportunity map, because the limits are higher there.
4. Take the homebuyer class if your loan requires one.
5. Compare other help in down payment assistance programs, and run our qualify check to see which homes for sale fit your household's size and income.