Buying a home in Virginia has become more challenging as prices and living costs continue to rise. For many first-time buyers, saving for a down payment is the biggest obstacle.
That’s where down payment assistance programs come in. These state-backed grants reduce or remove upfront costs, making homeownership possible sooner.
In this 2026 guide, you’ll learn how Virginia’s programs work, who qualifies, and how much support you could receive in your area. Whether you’re buying in Northern Virginia, Richmond, or Hampton Roads, these tools can make the difference between renting and finally owning your first home.
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Down payment assistance helps buyers cover the upfront costs of purchasing a home, such as the initial percentage required by lenders before closing. These programs, offered through state and local housing agencies, provide grants and assistance that reduce or remove the need for large personal savings.
In 2026, with home prices and living costs continuing to rise across Virginia, these programs are more important than ever. They allow first-time and moderate-income buyers to qualify for financing that might otherwise be out of reach. Down payment assistance is not a one-size-fits-all solution, the amount and structure vary by county, which this guide explains to help buyers understand how much support they could receive where they live.
Virginia Housing, formerly the Virginia Housing Development Authority, provides down payment assistance to help qualified residents buy homes with lower upfront costs. Funding comes from state housing initiatives that reinvest mortgage revenue and public resources into affordability programs. Assistance is offered as a grant, depending on income and loan type.
Funds are applied directly at closing to reduce the amount a buyer must bring to the table.
|
Feature |
Details |
|
Type of Assistance |
Repayable loan |
|
Amount Range |
2%–5% of home purchase price |
|
Repayment |
Monthly repayment for loans |
|
Purpose |
Reduce or remove upfront costs at closing |
For example, a buyer purchasing a $350,000 home could receive between $7,000 and $17,500 in support, depending on eligibility and loan structure.
In Virginia, down payment assistance is not offered as a flat statewide amount. Instead, it is calculated as a percentage of the home’s purchase price, with regional limits applied at the county level.
Virginia Housing sets maximum sales price limits and income limits by locality, which means buyers in higher-cost regions (such as Northern Virginia) may qualify for larger dollar amounts of assistance than buyers in lower-cost areas, even when using the same program.
Most Virginia Housing down payment assistance options provide between 2% and 5% of the purchase price, offered as either a grant or a repayable second loan. The exact amount available to a buyer depends on:
The home’s purchase price (within local sales price limits):
Because both sales price limits and income limits vary by county, two buyers using the same program could receive different assistance amounts depending on where they are buying.
To qualify for down payment assistance in Virginia, buyers must meet several key requirements set by Virginia Housing. A first-time homebuyer is defined as someone who has not owned a primary residence in the past three years. Applicants must also plan to live in the property as their main home rather than use it as an investment.
|
Requirement |
Description |
|
Residency |
Must buy a primary home in Virginia |
|
Income |
Within Virginia Housing’s county limits |
|
Home Price |
Must meet program cap for region |
|
Credit Score |
Generally 620 or higher |
|
Education |
Complete VHDA-approved homeownership course |
Eligibility depends on household income, property price, and credit history. Most programs also require completion of a homebuyer education course to ensure financial readiness.
Virginia’s down payment assistance programs and Maryland’s Mortgage Program (MMP) share the same goal, to make homeownership more attainable, but they differ in how support is delivered. Maryland’s MMP typically offers larger lump-sum amounts, ranging from $10,000 to $15,000. These are ideal for higher-cost areas like Montgomery and Prince George’s counties.
|
Program |
Max Assistance |
Type |
Best For |
|
Virginia DPA |
Up to 5% of purchase price or $6,000 |
Repayable Loan |
Buyers needing upfront help |
|
Maryland MMP |
Up to 5% of purchase price or $6,000 |
Deferred or Repayable Loan |
Buyers in higher-cost areas |
|
Virginia First-Time Buyer Savings Plan |
Varies by contributions |
Tax benefit |
Future buyers saving up |
Virginia’s approach is simpler and often easier to qualify for. Most support is provided as a grant, with amounts based on a percentage of the home price. This structure helps buyers who are ready to purchase now without adding long-term repayment obligations.
Both states aim to make homeownership accessible, but Virginia’s programs are more direct and flexible for ready-to-buy borrowers.
Down payment assistance programs offer practical advantages that make homeownership more attainable and sustainable for Virginians. By reducing or removing the need for large upfront savings, they allow buyers to move forward sooner rather than waiting years to save. Lower initial costs also make it easier to qualify for a mortgage, since the required down payment is smaller and overall debt ratios stay healthier.
|
Benefit |
How It Helps Buyers |
|
Lower Initial Costs |
Reduces need for personal savings |
|
Improved Approval Odds |
Helps meet lender down payment requirements |
Beyond affordability, these programs promote long-term financial stability. Buyers keep more savings available for emergencies, maintenance, or moving costs. Many Virginians qualify for assistance without realizing it, especially first-time and moderate-income households.
Applying for down payment assistance in Virginia is a straightforward process designed to guide first-time buyers from preparation to closing. The first step is to confirm eligibility based on income, credit score, and property location. Next, complete the required homebuyer education course, which provides essential guidance on budgeting and mortgage management.
|
Step |
Action |
Purpose |
|
1 |
Review eligibility and income limits |
Establish qualification |
|
2 |
Take homebuyer course |
Build financial readiness |
|
3 |
Work with approved lender |
Access Virginia Housing programs |
|
4 |
Complete application |
Verify eligibility |
|
5 |
Close on your home |
Receive down payment support |
Once prepared, choose a lender approved by Virginia Housing. Your lender will help collect and submit income, credit, and property documents to verify eligibility. After approval, funds are applied directly at closing to reduce your out-of-pocket costs.
Most applications are completed within 30 to 45 days, depending on how quickly documents are provided.
Virginia’s housing market in 2026 is expected to stay competitive, with prices continuing to rise steadily in most regions. Mortgage rates are projected to remain relatively stable compared to 2025, offering some predictability for buyers. However, limited inventory and population growth in urban areas like Northern Virginia and Richmond will keep affordability a major concern.
Down payment assistance programs will remain vital for helping first-time and moderate-income buyers overcome these challenges. By reducing upfront costs, they make it possible to buy even as prices increase. Virginia Housing and local programs continue to expand funding and flexibility to meet growing demand, ensuring more residents can transition from renting to stable, long-term homeownership.
For many buyers, Virginia’s down payment assistance programs can make homeownership possible much sooner than saving alone. They help lower upfront costs, improve mortgage approval odds, and provide the education and guidance you need to buy confidently.
These programs are designed to help Virginians purchase responsibly and start building equity right away. Even moderate-income households may qualify without realizing it, so it’s worth exploring your options.
If you’re thinking about buying your first home, I’d be happy to walk you through the programs available in your area and see what you might qualify for. Contact me today to get started.
Sources:
https://www.virginiahousing.com/
https://www.virginiahousing.com/homebuyers/down-payment-assistance-grant
https://www.hud.gov/states/virginia/homeownership/buyingprgms
https://www.virginiarealtors.org/market-reports/
https://www.fhfa.gov/DataTools/Downloads/Pages/Conforming-Loan-Limits.aspx
https://mmp.maryland.gov/Pages/Eligibility.aspx
https://www.consumerfinance.gov/owning-a-home/
https://finance.yahoo.com/news/northern-virginia-housing-market-poised-181800064.html