Virginia First-Time Home Buyer Guide 2026
Virginia Housing DPA grants, Plus Second Mortgage, MCC tax credit, and step-by-step guidance for buying your first home in Virginia.
Virginia Housing’s assistance programs can be combined for maximum benefit. The DPA Grant, Plus Second Mortgage, and MCC tax credit can all be used together, and are compatible with FHA, VA, USDA, and conventional financing.
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
| Feature | Detail |
|---|---|
| Grant Amount | 2% to 2.5% of 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.
| Program | Assistance Amount | Structure | Key Requirements |
|---|---|---|---|
| DPA Grant | 2% to 2.5% of purchase price | True grant, no repayment | 620 credit score, homebuyer education |
| Plus Second Mortgage | Up to 3.5% of purchase price | Deferred second loan, no monthly payments | Due when home is sold or refinanced |
| MCC | Up to $2,000/year | Federal tax credit (20% of mortgage interest) | Can be combined with the DPA Grant |
Program terms and limits can change. Confirm current income limits, credit score minimums, and grant terms at virginiahousing.com before applying.
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
| Program | Down Payment | Credit Score | Notes |
|---|---|---|---|
| FHA | 3.5% | 580+ | Popular in Hampton Roads, Richmond, and Roanoke |
| VA | 0% | No VA minimum (lender-set) | Extensively used statewide |
| USDA | 0% | Not specified | Eligible rural Virginia properties only |
| Fannie Mae HomeReady | 3% | Not specified | Household income counted |
Step-by-Step Buying Process for Virginia First-Time Home Buyers
| Step | What to Do | Notes |
|---|---|---|
| 1 | Check your credit score | You need at least 620 for Virginia Housing’s DPA Grant and MCC program. |
| 2 | Find a Virginia Housing-participating lender | Not all Virginia lenders offer these programs — ask before committing to a lender. |
| 3 | Complete homebuyer education | Required for Virginia Housing’s DPA Grant, Plus Second Mortgage, and MCC. Complete a HUD-approved course before closing. |
| 4 | Get pre-approved | Your lender calculates your maximum loan amount and which DPA programs you qualify for. |
| 5 | Make an offer | Confirm DPA program eligibility before going under contract. |
| 6 | Complete the home inspection | Negotiate any repairs or credits before closing. |
| 7 | Close on your loan | Virginia closings may be handled by either a licensed attorney or a registered non-attorney settlement agent (often a title company). |
