Virginia First-Time Homebuyer Calculator
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Estimate how much down payment assistance you could qualify for based on your income, home price, and location
If you're thinking about buying your first home in Virginia, you're not alone. Thousands of people each year are trying to break into the housing market, and the big question on everyone’s mind is: Does Virginia have a first time homebuyer program? The answer isn’t a simple yes or no-it’s more like a toolbox full of options. Some are state-run, others come from local governments or nonprofits, and a few are tied to federal programs. You just need to know where to look.
Virginia’s Main First-Time Homebuyer Programs
Virginia doesn’t have one single program that hands out cash to first-time buyers. Instead, it offers a mix of down payment assistance, low-interest loans, and tax credits designed to lower the upfront costs of buying a home.
The flagship program is the Virginia Housing Development Authority (VHDA). It’s not a grant-it’s a loan program with some of the most favorable terms in the state. VHDA offers fixed-rate mortgages with interest rates that are often below market average. For 2025, the average rate for a 30-year fixed loan through VHDA was 6.1%, compared to 6.8% for conventional loans nationwide.
What makes VHDA stand out is the Down Payment Assistance (DPA) option. If you qualify, you can get up to 4% of your home’s purchase price as a second mortgage. This money doesn’t need to be repaid until you sell, refinance, or no longer live in the home as your primary residence. And here’s the kicker: it’s interest-free.
You also get access to VHDA’s Homeownership Education course, which is required for all DPA applicants. The course takes about 6-8 hours and covers budgeting, credit repair, and what to expect at closing. It’s free if you take it through VHDA’s approved providers.
Who Qualifies?
Virginia’s programs aren’t open to everyone. There are income limits, credit score minimums, and purchase price caps based on where you’re buying.
For VHDA’s DPA program in 2025:
- You must be a first-time homebuyer (haven’t owned a home in the last three years)
- Minimum credit score: 640
- Maximum household income: $140,000 in most counties, $165,000 in Northern Virginia
- Home price cap: $580,000 in high-cost areas, $520,000 elsewhere
- You must use the home as your primary residence
There are exceptions. If you’re a veteran, teacher, firefighter, or law enforcement officer, you might qualify for higher income limits or extra assistance through VHDA’s Special Occupant Programs. Teachers in designated rural or low-income school districts can get up to $10,000 in additional down payment help.
Local Programs You Might Miss
While VHDA is the biggest player, don’t overlook city and county programs. Richmond, for example, has the Homeownership Assistance Program, which offers up to $25,000 in forgivable grants for buyers in targeted neighborhoods. The grant is forgiven over five years-so if you stay in the home for five years, you never pay it back.
Virginia Beach runs a similar program called Homebuyer Assistance for Affordable Housing. It’s open to buyers earning up to 80% of the area median income. The city provides up to $15,000 in assistance, and you don’t need to be a first-time buyer if you’re purchasing in a designated revitalization zone.
Many rural counties-like Buchanan, Lee, and Wise-have smaller programs funded by federal Community Development Block Grants. These often target low-to-moderate income buyers and may include home repair grants alongside purchase assistance.
Other Financial Help Outside VHDA
Even if you don’t qualify for VHDA, you still have options.
FHA loans are popular in Virginia because they allow as little as 3.5% down. Combine that with a state DPA, and you could buy a home with under $5,000 out of pocket.
VA loans are available to veterans and active-duty military. No down payment is required, and there’s no private mortgage insurance. In 2025, over 30% of first-time buyers in Virginia used VA loans.
USDA loans cover rural areas in Virginia, including parts of the Shenandoah Valley and Southwest Virginia. These offer 100% financing and low interest rates, but the property must be in an eligible ZIP code.
Some employers-especially in healthcare, education, and public service-offer their own homebuyer programs. Hospitals in Roanoke and Norfolk, for instance, have given employees up to $10,000 in forgivable loans to buy homes near their workplaces.
What You Should Avoid
Not all assistance is good assistance. Watch out for:
- “Free money” scams-anyone asking for an upfront fee to help you apply for a state program is likely a scam. All official Virginia programs are free to apply for.
- High-interest second mortgages-some private lenders offer down payment help but charge 8-12% interest. Stick to VHDA or city programs with 0% rates.
- Overextending your budget-just because you can get $20,000 in help doesn’t mean you should buy a $500,000 home. Your monthly payment should not exceed 30% of your gross income.
Also, don’t assume you’ll get approved right away. The approval process can take 4-6 weeks. Start your home search after you’ve been pre-approved for a mortgage and confirmed your eligibility for assistance.
How to Apply
Here’s a simple step-by-step path:
- Check your credit score. Aim for at least 640.
- Calculate your household income. Use the VHDA income limits tool on their website.
- Take the free VHDA homebuyer education course.
- Get pre-approved for a mortgage with a lender who works with VHDA.
- Find a home within the price cap for your area.
- Submit your DPA application through your lender-don’t apply directly.
Most people complete the whole process in 60-90 days. The key is starting early and working with a lender experienced in Virginia’s programs. Not all lenders handle VHDA loans.
What Happens After You Buy?
Once you close, you’re not done. You’ll need to:
- Keep your home as your primary residence for at least one year
- Keep up with property taxes and insurance
- Report any changes in income or household size to your lender
If you sell or move out before five years, you may have to repay part of the down payment assistance. The repayment amount is prorated based on how long you lived there.
Alternatives If You Don’t Qualify
If your income is too high, your credit score too low, or you’re not a first-time buyer, you still have options:
- Look into community land trusts in Charlottesville or Roanoke-they sell homes at below-market prices with long-term affordability protections.
- Consider co-ownership with a family member or friend through Virginia’s Shared Ownership program.
- Wait a year or two to rebuild your credit or save more. Even a 10% down payment can eliminate private mortgage insurance and open up better loan terms.
Many buyers think they need to jump in right away. But waiting six months to improve your credit by 50 points can save you $150 a month on your mortgage. That’s $1,800 a year.
Does Virginia give free money to first-time homebuyers?
Virginia doesn’t give outright cash grants to most buyers. Instead, it offers interest-free down payment assistance loans through VHDA that are forgiven over time if you stay in the home. Some cities like Richmond offer forgivable grants, but these are limited to specific neighborhoods and income levels.
Can I use a first-time homebuyer program if I’ve owned property before?
Generally, no. Most programs define a first-time buyer as someone who hasn’t owned a home in the last three years. But if you owned a home outside the U.S., or if your previous home was destroyed by a natural disaster, you might still qualify. Check with VHDA or your local housing authority for exceptions.
Do I need to be a Virginia resident to qualify?
Yes. You must be a U.S. citizen or permanent resident and plan to live in the home as your primary residence. You don’t need to have lived in Virginia for a certain amount of time before buying, but you must move in within 60 days of closing.
Can I combine VHDA with a VA or FHA loan?
Yes. VHDA’s down payment assistance works with FHA, VA, USDA, and conventional loans. Many buyers use a VA loan for the main mortgage and VHDA’s DPA to cover the down payment and closing costs. This combo can result in zero money down.
How long does it take to get approved for Virginia’s homebuyer programs?
The whole process takes about 6 to 12 weeks. Getting pre-approved for a mortgage takes 1-2 weeks. Completing the homebuyer course takes a few days. Submitting your DPA application and getting approval takes another 3-5 weeks. Start early-don’t wait until you find your dream home.
Next Steps
Ready to move forward? Go to vhda.com and use their online eligibility checker. It takes five minutes and doesn’t require your Social Security number. Then, call a local lender who works with VHDA. Ask them: “Do you handle VHDA’s Down Payment Assistance program?” If they say no, find one who does.
Don’t wait for the perfect moment. The housing market doesn’t pause. But with the right help, you don’t need to be perfect-you just need to be prepared.
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