Virginia’s down payment assistance programs operate through two primary state agencies — Virginia Housing (formerly VHDA) and the Department of Housing and Community Development — with the state’s DPA Pilot Program offering up to $50,000 in forgivable assistance for qualifying buyers and the DHCD HOMEownership program providing up to $40,000. Richmond-area buyers can layer local programs through Henrico County, the Southside Community Development and Housing Corporation, and Housing Opportunities Made Equal for additional assistance. Here’s every program worth knowing about in 2026.
Virginia Housing State Programs
Down Payment Assistance Grant
Virginia Housing’s DPA Grant provides 2% to 2.5% of the purchase price as a true grant — no repayment required under any circumstances. The grant works with VHDA Fannie Mae purchase programs (including No MI and Reduced MI options), VHDA FHA (including FHA-CHR), and VHDA Conventional Bond-CHR loans.
The simplicity of the grant structure makes it the most straightforward DPA option in Virginia. There are no forgiveness periods, no occupancy requirements beyond initial move-in, and no repayment triggers if you sell or refinance. The trade-off is the relatively modest amount — 2% to 2.5% covers a smaller portion of the down payment than the larger forgivable loan programs. On a $350,000 home, 2.5% equals $8,750.
The DPA Grant cannot be combined with the FHA Plus second mortgage program, so buyers must choose one or the other.
Virginia Housing Plus Second Mortgage (FHA Plus)
The FHA Plus program provides a second mortgage to cover the down payment, with terms that vary by credit score. Buyers with scores below 680 can borrow the full down payment amount. Buyers with scores of 680 or above can borrow the full down payment plus an additional 1.5% for closing costs — a meaningful bonus that reduces out-of-pocket expenses further.
Unlike the DPA Grant, the Plus Second Mortgage is a repayable loan. The additional closing cost coverage for higher-credit borrowers makes this option particularly attractive for buyers who have strong credit but limited savings.
Closing Cost Assistance Grant
Virginia Housing’s Closing Cost Assistance Grant provides up to 2% of the purchase price for buyers using VA or USDA loans. The grant can be applied to down payment, closing costs, discount points, or VA/USDA funding fees. For VA-eligible buyers who already benefit from zero-down financing, this grant covers the fees and closing costs that represent the remaining out-of-pocket expense.
Virginia DHCD Programs
HOMEownership Down Payment Assistance
The Virginia Department of Housing and Community Development’s HOMEownership DPA program provides up to $40,000 in assistance — up to 10% of the sales price, or up to 15% in established approved areas, plus up to $2,500 for closing costs. The assistance starts as a loan but functions as a grant: zero interest, no monthly payments, and full forgiveness if the homebuyer remains in the home for the required period.
Income eligibility requires household income at or below 80% of the Area Median Income. Buyers cannot have 10% or more of the sales price in cash assets (ensuring the program serves those who genuinely need assistance), and sale-by-owner transactions are ineligible. First-time homebuyer status is generally required.
The $40,000 maximum and the 15% option in approved areas make this one of the most generous state-administered DPA programs on the East Coast. For Richmond buyers in approved areas, 15% of a $350,000 home equals $52,500 plus $2,500 in closing cost assistance — a combined package that effectively eliminates the down payment barrier.
State DPA Pilot Program
Virginia’s DPA Pilot Program provides up to $50,000 as a forgivable second mortgage at zero interest with no monthly payments. The loan forgives fully if the homebuyer retains the property as a principal residence for 15 years from closing. Income eligibility is limited to households at or below 60% of the Area Median Income — a tighter threshold than the HOMEownership program’s 80% AMI.
The $50,000 maximum is the largest single-program assistance amount available in Virginia. The 15-year forgiveness period is the longest of any Virginia program, requiring a significant commitment to stay in the home, but for buyers who plan to put down roots, the assistance effectively becomes a $50,000 grant.
Federal Loan Programs in Virginia
FHA Loans
FHA loans require a minimum 3.5% down payment with a credit score of 580 or above. Virginia’s 2026 FHA loan limits range from $524,225 to $1,209,750 for single-family homes depending on the locality, reflecting the wide range in home prices from rural Virginia to the Northern Virginia corridor. The Richmond market falls in the moderate range, and Virginia Housing’s DPA Grant or Plus Second Mortgage covers the FHA down payment requirement.
VA Loans
Virginia’s proximity to the Pentagon, Fort Gregg-Adams (formerly Fort Lee), Naval Station Norfolk, and Joint Base Langley-Eustis creates a significant military population eligible for VA loans. Zero-down VA financing combined with Virginia Housing’s 2% Closing Cost Assistance Grant provides military buyers with a pathway to homeownership that requires virtually no cash at closing.
USDA Loans
USDA loans offer 100% financing in designated rural and suburban areas. Portions of the Richmond metro’s outer ring — including areas of Hanover, Chesterfield, and New Kent counties — include USDA-eligible zones within commuting distance of downtown Richmond. The 2026 income limit exceeds $119,850 for a standard family of one to four members.
Richmond-Area Local Programs
Henrico County First-Time Homebuyer Program
Henrico County provides deferred payment forgivable loans for first-time, low-to-moderate income homebuyers purchasing within the county. The assistance amount is based on identified need, and the program operates through two partner organizations: Housing Opportunities Made Equal (HOME Inc.) at 804-354-0641 and the Southside Community Development and Housing Corporation (SCDHC) at 804-231-4449.
Southside Community Development and Housing Corporation
SCDHC serves Henrico County, Chesterfield County, and the City of Richmond with down payment and closing cost assistance. The minimum credit score is 600 — lower than most state programs — and applicants must have at least $1,000 in savings. SCDHC also administers Virginia Individual Development Accounts (VIDA), which provide training, support, and matched savings funding to help buyers build their down payment over time.
Housing Opportunities Made Equal (HOME Inc.)
HOME Inc. provides down payment or closing cost assistance to qualifying first-time homebuyers in the City of Richmond and Chesterfield County. The organization combines financial assistance with homebuyer education and counseling, providing support throughout the purchase process.
Richmond Redevelopment and Housing Authority
RRHA operates homeownership programs that provide additional pathways to homeownership for Richmond residents, particularly those transitioning from rental housing.
Programs for Specific Professions
Community Heroes Grant
The Community Heroes Grant provides a $10,000 non-repayable grant for down payment and closing costs. Eligible professions include teachers and educators, childcare workers, law enforcement officers, firefighters, first responders, military personnel, healthcare professionals, and retirees from these professions. The grant is administered through Ameris Bank Mortgage Services.
Teacher Next Door
Virginia teachers and school staff can access up to $8,000 in grants plus up to $15,000 in additional down payment assistance through the Teacher Next Door program. The assistance can be combined with state programs for a total package that significantly reduces the cost of entry.
Next Door Programs
The broader Next Door Programs network provides grants and up to $24,000 in down payment assistance for teachers, nurses, law enforcement, firefighters, EMTs, military members, and government employees. As the largest national homebuying program in the country, Next Door extends eligibility to a wide range of public service professions.
How to Apply
Virginia Housing programs require working with an approved lender from the Virginia Housing network. The agency can be reached at 877-843-2123, and the full lender directory is available at virginiahousing.com. DHCD programs coordinate through local nonprofit partners — for Richmond-area buyers, SCDHC and HOME Inc. serve as the primary access points.
Virginia Housing offers free homebuyer education courses, and completion of a course is required or strongly recommended for most programs. Starting the education component early prevents delays at closing.
Stacking for Maximum Benefit
Richmond-area buyers can combine state and local programs for substantial total assistance. A first-time buyer at or below 80% AMI could potentially access the DHCD HOMEownership program (up to $40,000), the Virginia Housing DPA Grant (2% to 2.5%), and local assistance through SCDHC or HOME Inc. A teacher or first responder could add the $10,000 Community Heroes Grant or Teacher Next Door assistance on top.
The DPA Pilot Program’s $50,000 maximum targets the lowest-income buyers (60% AMI) with the most generous single-program assistance in the state, while the HOMEownership program’s $40,000 at 80% AMI serves a broader middle-income band. Understanding which income tier you fall into determines which combination of programs maximizes your total assistance.
Note that DPA programs in Virginia are limited resources rather than entitlements — funding can be exhausted, and application windows may close. Working with an approved lender who monitors program availability and can move quickly on applications is the best way to secure assistance before funds are depleted.
For more on the Richmond housing market, explore our housing market update and how much house you can afford in Richmond guide.