State Guide

First-Time Homebuyer Programs in Virginia

Last updated: June 17, 2026

Overview

Virginia first-time homebuyer assistance is anchored by Virginia Housing (formerly the Virginia Housing Development Authority), which combines below-market 30-year fixed-rate mortgages with a Down Payment Assistance Grant of up to $10,000 that requires no repayment. Virginia Housing also issues a Mortgage Credit Certificate available statewide for federal tax savings on top of the first mortgage. In Northern Virginia and Richmond, Virginia Housing stacks with three of the strongest local programs in the Mid-Atlantic: the Fairfax County First-Time Homebuyers Program for buyers in Fairfax County, the Arlington County Moderate Income Purchase Assistance Program for buyers in Arlington, and the City of Richmond Down Payment Assistance Program for buyers within Richmond city limits. The combination makes Virginia one of the more navigable high-cost markets in the Mid-Atlantic for income-qualified first-time buyers.

Down Payment Assistance Programs

Virginia Housing Conventional and FHA First Mortgages. Virginia Housing's flagship 30-year fixed-rate first mortgages, available with FHA, VA, USDA, or conventional underwriting (Fannie Mae HFA Preferred / HFA Preferred Reduced MI). Below-market interest rates and reduced mortgage insurance for income-eligible first-time buyers. The first mortgage that most other Virginia Housing assistance layers on top of.
Virginia Housing Down Payment Assistance Grant. Provides up to $10,000 (2.0% to 2.5% of the purchase price, depending on the loan product) in down payment assistance as a grant - no repayment required and no lien on the property. Must be paired with a Virginia Housing first mortgage. The most accessible statewide DPA option in Virginia because there is no payback obligation.
Virginia Housing Closing Cost Assistance (CCA) Grant. An additional Virginia Housing grant for closing cost coverage, available with VA and USDA-backed Virginia Housing first mortgages. Typically up to 2% of the loan amount as a non-repayable grant, stackable with the Down Payment Assistance Grant for eligible buyers.
Virginia Housing Mortgage Credit Certificate (MCC). A federal tax credit worth 10% of annual mortgage interest paid, applied directly against your federal income tax bill for the life of the loan, with no annual cap on the credit amount. Issued at closing through a Virginia Housing-approved lender and combinable with most Virginia Housing first mortgages. The MCC remains in effect as long as the home is the buyer's primary residence.
Virginia Housing Plus Second Mortgage. A 30-year fixed-rate second mortgage paired with a Virginia Housing conventional first mortgage, covering down payment and closing costs up to a combined 103% to 105% loan-to-value depending on the program tier. Available for buyers who need more than the Down Payment Assistance Grant amount can provide and prefer a repayable second to a forgivable or grant structure.

Income and Purchase Price Limits

Virginia Housing income limits vary by county and household size. Most non-metro Virginia counties have limits around $110,000 to $130,000 for 1-2 person households, with higher limits in Northern Virginia (Arlington, Fairfax, Loudoun, Prince William) typically reaching $150,000 to $185,000+ reflecting the metro DC housing market. Sales price limits are generally $500,000 statewide, with higher ceilings in Northern Virginia. Always confirm current limits with a Virginia Housing-approved lender or at VirginiaHousing.com before assuming eligibility.

City and County Programs Worth Knowing

Northern Virginia and Richmond have local programs that meaningfully change the math for first-time buyers. All three are designed to stack on top of Virginia Housing financing.

Fairfax County First-Time Homebuyers Program. Administered by the Fairfax County Department of Housing and Community Development for first-time buyers purchasing a primary residence within Fairfax County, this program provides up to $25,000 in down payment and closing cost assistance as a deferred-payment second loan - no monthly payments, with terms tied to a multi-year owner-occupancy period. Income limits are tied to area median income (typically up to 70% AMI), buyers must complete a HUD-approved homebuyer education course, and the home must be the buyer's primary residence. The program also operates an Affordable Dwelling Unit (ADU) and Workforce Dwelling Unit (WDU) inventory of price-restricted homes that the DPA can be applied to. Fairfax County's program is one of the larger county-administered DPA amounts in the Mid-Atlantic.
Arlington County Moderate Income Purchase Assistance Program (MIPAP). Administered by Arlington County's Department of Community Planning, Housing and Development for first-time buyers purchasing within Arlington County, MIPAP provides up to $27,000 in down payment and closing cost assistance as a shared-equity deferred second loan. When you sell or refinance, you repay the original loan plus a share of the home's appreciation proportional to the assistance amount. Income limits are tied to area median income (typically up to 80% AMI), buyers must complete a HUD-approved homebuyer education course, and the home must be the buyer's primary residence. MIPAP is one of the largest county-administered DPA amounts in the Mid-Atlantic and is designed to stack with Virginia Housing first mortgages.
City of Richmond Down Payment Assistance Program. Administered by the City of Richmond's Department of Housing and Community Development for first-time buyers purchasing a primary residence within Richmond city limits, this program provides up to $20,000 in down payment and closing cost assistance as a deferred or forgivable second loan, with terms tied to a multi-year owner-occupancy period. Income limits are tied to area median income (typically up to 80% AMI), buyers must complete a HUD-approved homebuyer education course, and the home must be the buyer's primary residence. The Richmond DPA program is designed to stack with Virginia Housing first mortgages and is one of the most widely used local programs in central Virginia.
Loudoun, Prince William, and Other Northern Virginia Programs. Loudoun County (ADU and Down Payment / Closing Cost Assistance), Prince William County (Homeownership Assistance Program), and the cities of Alexandria, Falls Church, and Manassas operate their own first-time buyer assistance programs in the DC metro. Availability and amounts vary by jurisdiction and funding cycle - confirm with the relevant county or city housing department before counting on local assistance.

Fairfax County, Arlington MIPAP, and Richmond DPA all run on funding cycles that can exhaust mid-year, and homebuyer education must be completed before application - not after offer acceptance. Plan the education step into the front of your timeline, confirm your target property falls inside the relevant county or city boundary, and verify current funding availability with the administering agency before counting on local assistance in your offer.

FHA Loan Requirements in Virginia

FHA loans are widely used by Virginia first-time buyers and are compatible with Virginia Housing's first mortgage, DPA Grant, and MCC, as well as the Fairfax County, Arlington MIPAP, and Richmond DPA local programs. In Northern Virginia, FHA loan limits are well above the standard ceiling, keeping FHA financing viable across most of the DC metro Virginia counties.

Minimum requirements to qualify for an FHA loan in Virginia:

Credit score: 580 or higher for 3.5% down payment with standard FHA. Virginia Housing's overlay typically requires 620 or higher (640 for the Down Payment Assistance Grant).
Down payment: 3.5% of the purchase price with a 580+ credit score. The Virginia Housing DPA Grant plus Fairfax County, Arlington MIPAP, or Richmond DPA can cover this and more.
Debt-to-income ratio (DTI): Generally 43% or below, with lender flexibility up to 50% for borrowers with compensating factors.
Employment history: Two years of consistent employment or verifiable income history.
Primary residence: FHA loans require owner occupancy - not eligible for investment properties or vacation homes.
Mortgage insurance: FHA loans require an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount, plus an annual premium of 0.45% to 1.05%.

FHA loan limits in Virginia for 2025:

FHA loan limits in Virginia vary by county. Most non-metro counties use the standard single-family limit of $524,225. The Northern Virginia counties in the DC metro (Arlington, Fairfax, Loudoun, Prince William, plus the independent cities of Alexandria, Falls Church, and Fairfax City) use the high-cost area limit, which reaches the national ceiling for single-family homes, with higher limits for 2-4 unit properties. Confirm the current limit for your specific county at HUD.gov.

Stacking FHA with Virginia Housing and local programs:

The most efficient structure for a Fairfax County first-time buyer is an FHA-backed Virginia Housing first mortgage, Virginia Housing's $10,000 DPA Grant, the Fairfax County First-Time Homebuyers Program up to $25,000, and the Virginia Housing MCC for ongoing federal tax savings. In Arlington, replace Fairfax County with MIPAP's up to $27,000 shared-equity second; in Richmond, replace with Richmond DPA's up to $20,000. An approved Virginia Housing lender experienced with the relevant local program can confirm which combination applies to your income, credit, and target property.

How to Apply

Confirm you have not owned a primary residence in the past three years (waived in federally targeted areas and for qualifying veterans).
Check your credit score - 580 is the FHA minimum for 3.5% down, and Virginia Housing typically requires 620 or higher (640 for the DPA Grant).
Review current Virginia Housing income and sales price limits for your county at VirginiaHousing.com.
If you're buying in Fairfax County, contact the Fairfax County Department of Housing and Community Development and confirm current First-Time Homebuyers Program availability, ADU/WDU inventory, and required homebuyer education.
If you're buying in Arlington County, contact Arlington's Department of Community Planning, Housing and Development and confirm current MIPAP availability and the required homebuyer education course.
If you're buying within Richmond city limits, contact the City of Richmond's Department of Housing and Community Development and confirm current DPA availability.
Complete a HUD-approved homebuyer education course - required by Virginia Housing and accepted by Fairfax, Arlington MIPAP, and Richmond DPA. Some local programs require a specific course; confirm before enrolling.
Select an approved lender on both the Virginia Housing list and the relevant local program list (Fairfax, Arlington MIPAP, or Richmond DPA) - the overlap is smaller than Virginia Housing's full list, so ask directly.
Apply through your approved lender, who will coordinate the Virginia Housing application, the local program submission, and MCC issuance simultaneously.

FAQ

What credit score do I need for Virginia Housing programs?

Virginia Housing generally requires a minimum credit score of 620 for its FHA, VA, and USDA first mortgages and 640 for the Down Payment Assistance Grant. Conventional Virginia Housing products typically require 660 or higher. FHA itself allows scores as low as 580 for 3.5% down, but Virginia Housing's overlay is higher. If your score is between 580 and 619, a standard FHA loan is still available through non-Virginia Housing lenders, but you would not be eligible for the Virginia Housing DPA Grant simultaneously.

Is the Virginia Housing $10,000 DPA really a grant with no payback?

Yes - the Virginia Housing Down Payment Assistance Grant is a true grant, not a loan. There is no monthly payment, no balloon repayment, no lien on the property, and no occupancy clawback if you move. The grant amount is up to 2.0% or 2.5% of the purchase price (capped at $10,000 on most loan products) and is funded at closing. This is one of the most accessible statewide DPA structures in the country and is the primary reason most Virginia Housing borrowers use the agency's first mortgage product.

How much down payment assistance can I actually get in Northern Virginia or Richmond?

In Fairfax County, an eligible first-time buyer can stack Virginia Housing's $10,000 DPA Grant with the Fairfax County First-Time Homebuyers Program's up to $25,000 - meaning up to roughly $35,000 in combined down payment and closing cost assistance. In Arlington, the stack is the Virginia Housing $10,000 grant plus Arlington MIPAP's up to $27,000 shared-equity second, for a combined total of up to roughly $37,000. In Richmond, the stack is the Virginia Housing $10,000 grant plus Richmond DPA's up to $20,000, for roughly $30,000 in combined assistance. Outside these jurisdictions, you're typically working with Virginia Housing alone (plus the MCC).

What does Arlington MIPAP's shared-equity structure mean?

MIPAP provides up to $27,000 as a deferred second loan, but unlike a flat-dollar repayable second, you repay the original loan amount plus a share of the home's appreciation when you sell or refinance. The share is proportional to the assistance amount relative to the purchase price - so if MIPAP funded roughly 5% of your purchase price, Arlington County receives roughly 5% of the appreciation at sale, in addition to the original $27,000. This structure trades higher upfront affordability for shared upside, similar to California's Dream For All program. Read the MIPAP loan agreement carefully before accepting.

Can I stack Virginia Housing with the Fairfax County, Arlington MIPAP, or Richmond programs?

Yes - this is the intended use case for Northern Virginia and Richmond first-time buyers. Virginia Housing provides the first mortgage and $10,000 DPA Grant, and the relevant county or city program layers on top for additional down payment and closing cost coverage. Your lender must be approved for both Virginia Housing and the relevant local program - confirm this directly before submitting an offer.

How long does it take to close using Virginia Housing plus a local program?

Expect 45 to 75 days. Virginia Housing-only closings track close to standard timelines (35-45 days), but adding Fairfax County, Arlington MIPAP, or Richmond DPA adds a local agency review step that extends closing by 15 to 30 days. Homebuyer education should be completed before you start house hunting - not after offer acceptance - to avoid pushing the timeline further.