Virginia Mortgage Guides

Virginia First-Time Home Buyer Guide 2025

Virginia Housing DPA grants, Plus Second Mortgage, MCC tax credit, and step-by-step guidance for buying your first home in Virginia.

📖 11 min readUpdated 2025Virginia

In This Guide

Virginia Housing Down Payment Assistance Grant
Virginia Housing Mortgage Credit Certificate (MCC)
Virginia Housing Plus Second Mortgage
Federal programs available to Virginia first-time buyers
Virginia first-time buyer FAQs

Virginia Housing Down Payment Assistance Grant

Virginia Housing’s DPA Grant is one of the most attractive buyer assistance products in the Mid-Atlantic. Unlike many programs that structure assistance as a second mortgage, Virginia Housing’s grant is a true grant — no repayment, no forgiveness schedule, no second lien.

Grant amount: 2% to 2.5% of the purchase price
Income limit: Varies by county — approximately $100,000 to $175,000
Credit score minimum: 620
First-time buyer requirement: Yes (veterans and targeted area exceptions)
Homebuyer education: Required
Eligible loan types: FHA, VA, USDA, Conventional

Virginia Housing Mortgage Credit Certificate (MCC)

The Virginia Housing MCC allows qualifying first-time buyers to claim a federal income tax credit equal to 20% of annual mortgage interest — up to $2,000 per year. This credit reduces federal income tax liability dollar-for-dollar and can be claimed every year for the life of the loan. The MCC can be combined with Virginia Housing’s DPA grant.

Virginia Housing Plus Second Mortgage

For buyers who need more than the grant provides, Virginia Housing offers a Plus Second Mortgage — a deferred second loan of up to 3.5% of the purchase price for down payment or closing costs. No monthly payments; due when the home is sold or the first mortgage is paid off.

Federal Programs Available to Virginia First-Time Buyers

FHA loans: 3.5% down with 580+ credit score — popular in Hampton Roads, Richmond, and Roanoke
VA loans: 0% down — extensively used statewide
USDA loans: 0% down for eligible rural Virginia properties
Fannie Mae HomeReady: 3% down, household income counted

Virginia First-Time Home Buyer FAQs

What is the Virginia Housing Down Payment Assistance Grant?

It is a true grant of 2% to 2.5% of the purchase price, with no repayment, no forgiveness schedule, and no second lien.

What are the eligibility requirements for the DPA grant?

The income limit varies by county, from approximately $100,000 to $175,000. The minimum credit score is 620, homebuyer education is required, and it’s limited to first-time buyers (with exceptions for veterans and targeted areas). Eligible loan types are FHA, VA, USDA, and Conventional.

What is the Virginia Housing Mortgage Credit Certificate (MCC)?

The MCC lets qualifying first-time buyers claim a federal income tax credit equal to 20% of annual mortgage interest, up to $2,000 per year, for the life of the loan. It can be combined with Virginia Housing’s DPA grant.

What is the Virginia Housing Plus Second Mortgage?

It’s a deferred second loan of up to 3.5% of the purchase price for down payment or closing costs, for buyers who need more than the DPA grant provides. There are no monthly payments; it’s due when the home is sold or the first mortgage is paid off.

What federal loan programs are available to first-time buyers in Virginia?

FHA loans require 3.5% down with a 580+ credit score and are popular in Hampton Roads, Richmond, and Roanoke. VA loans require 0% down and are used extensively statewide. USDA loans require 0% down for eligible rural Virginia properties. Fannie Mae HomeReady requires 3% down and counts household income.