Finding a house in Virginia right now is, honestly, a bit of a rollercoaster. Prices in Northern Virginia or even parts of Richmond make you want to close your eyes and pretend the 2010s are coming back. Most people think they need a massive pile of cash just to get through the front door.
But here is the thing. You might not need as much as you think.
The virginia housing down payment assistance grant is probably one of the most misunderstood tools in the local real estate market. It isn’t a loan. It isn't some complex "pay us back when you sell" scheme. It’s basically a gift from Virginia Housing (formerly VHDA) to help you bridge that annoying gap between "I can afford the monthly payment" and "I don't have $15,000 sitting in a savings account."
What exactly is this grant?
Let's get the terminology straight because it matters. A lot of "assistance" programs are actually second mortgages. They have interest rates. They have monthly payments.
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This specific grant is a true gift.
If you qualify, Virginia Housing gives you a percentage of the purchase price—usually ranging from 2% to 2.5%—to put toward your down payment. You don't pay it back. There is no lien on your property for this specific money. Once you close, that money is yours, baked into the equity of your home.
You’ve got to use it with a Virginia Housing "Bond" loan. That’s the catch. You can't just take this grant and go find a random mortgage from a big national bank. It has to be paired with their specific FHA or Conventional Bond products.
The stuff nobody tells you about eligibility
Most people assume these grants are only for people with low incomes. That’s actually not true. The income limits for the virginia housing down payment assistance grant are surprisingly high, especially if you are looking in high-cost areas like Alexandria, Arlington, or Loudoun County.
For instance, as of the most recent 2025/2026 updates, household income limits in the Northern Virginia region for a two-person household can hover around $148,000 for the grant. In other parts of the state, it might be lower, but we aren't talking about poverty-level wages here. We are talking about working professionals, teachers, and healthcare workers.
Wait, there's a nuance.
Virginia Housing looks at household income. If you are buying the house alone, but your partner or a family member is living with you and earning money, their income usually counts toward the limit even if they aren't on the mortgage. People get tripped up on this constantly during the underwriting process.
Credit scores and the "Secret" 1%
You don't need a perfect 800 credit score. Honestly, a 620 or 640 is often enough to get your foot in the door for these programs.
But there is a catch. You usually have to contribute at least 1% of the sales price from your own funds.
Example time:
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- House price: $350,000
- Grant (2.5%): $8,750
- Your required 1%: $3,500
Basically, you still need some "skin in the game." You can't walk away with $0 out of pocket in most scenarios unless you're pairing this with other very specific local programs.
Why some lenders won't tell you about it
I’ve seen this happen. You go to a big-box bank and they tell you that you don't qualify for anything. Or they push you toward a high-interest "standard" loan.
Why? Because not every lender is "Virginia Housing Approved."
To offer the virginia housing down payment assistance grant, a loan officer has to go through specific training and their company has to be a partner. It’s extra paperwork for them. Some just don't want to deal with it. If you want this grant, you need to specifically ask: "Are you a Virginia Housing partner lender?"
If they say no, walk away.
The "Targeted Area" Loophole
Generally, this grant is for first-time homebuyers. In the mortgage world, "first-time" usually means you haven't owned a primary residence in the last three years.
However, if you buy in a "Targeted Area"—which are specific zones Virginia wants to revitalize—the first-time homebuyer rule often vanishes. You could have sold a house yesterday and still get the grant if the new house is in one of these zones. It’s a massive advantage that people completely overlook because they assume they're "disqualified" as repeat buyers.
Comparing the Grant to the "Plus Second"
You might hear your lender mention the "Plus Second Mortgage."
Don't confuse them.
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The grant is free money (2% to 2.5%). The Plus Second is a loan (up to 3% or 5%) that you have to pay back over 30 years. The Plus Second allows for higher income limits, so if you make "too much" money for the grant, the Plus Second is your backup plan.
But honestly? If you fit the income bracket for the grant, take the grant. Why pay back money if you don't have to?
Real steps to get this moving
Don't just start scrolling Zillow. That’s how people get disappointed.
- Take the class. Virginia Housing requires a free homebuyer education course. It’s actually helpful. It covers credit, budgeting, and the "oh no" moments of homeownership. You can do it online or in person. Do this first.
- Find a Partner Lender. Go to the Virginia Housing website and use their "Find a Lender" tool. Filter for people who actually close these grants regularly.
- Get your "Certificate of Eligibility." Your lender handles the grant application alongside your mortgage. There isn't a separate "grant office" you have to visit.
- Check the Sales Price Limits. Every county has a cap. If you're looking at a $900,000 house, the grant isn't going to happen. In many parts of Virginia, the limit is around $600k-$700k, but it varies wildly by zip code.
The virginia housing down payment assistance grant is effectively a way to skip a year or two of aggressive saving. It isn't a "handout"—it’s a strategic move to get people into homes so they can start building equity now instead of waiting for prices to climb even higher.
If you are currently renting in Virginia and your income is under six figures (or slightly over in NoVa), you are likely leaving money on the table by not looking into this. Start by checking the current income limit for your specific county on the Virginia Housing portal; those numbers update frequently and could be the difference between a "maybe" and a "yes."