Down Payment Assistance in Virginia: What You Qualify For
- Steve Davis
- Aug 11
- 4 min read
If something's been holding you back from buying, it's probably the down payment. It's the number-one hurdle most first-time buyers name — and it's also the most misunderstood. Here's the good news: between state grants, low- and zero-down loans, and lender programs, Virginia down payment assistance can put a home in Richmond within reach a lot sooner than the old “save 20%” rule suggests.
The 20% myth. You do not need 20% down to buy a home. Many loans ask for 3–5%, some ask for nothing at all, and assistance programs can cover part or all of what's left. Putting 20% down mainly just lets you skip mortgage insurance — it's a goal, not a gate.
The quick numbers: a Virginia Housing grant of about 2–2.5% you don't repay · $0 down is possible with VA & USDA loans · and 3% down is common on conventional loans.
Virginia Housing — the state's assistance programs
Virginia Housing (formerly VHDA) is the state's housing finance agency, and it runs the programs most Virginia buyers start with. A few of the big ones:
Down Payment Assistance (DPA) Grant
A true grant — money you don't pay back — of roughly 2–2.5% of the purchase price, applied toward your down payment. It's for first-time buyers (generally, anyone who hasn't owned a home in the last three years), used with a Virginia Housing loan, and it comes with income limits and a homebuyer education course. Buyers in designated “Target Areas” may qualify even if they've owned before.
Closing Cost Assistance (CCA) Grant
Another no-repayment grant, aimed at closing costs rather than the down payment, for first-time buyers using a USDA or VA loan through Virginia Housing. Closing costs are the other surprise expense for new buyers, so this one's easy to overlook and worth asking about.
Plus Second Mortgage
Prefer help that isn't limited to first-timers? The Plus Second Mortgage is a small second loan — up to 5% of the price toward your down payment, plus up to 1.5% for closing costs — paired with a Virginia Housing first mortgage. It's repayable (often deferred) and typically needs a credit score around 680. This is the one that can get you to a true $0-out-of-pocket down payment.
Free homebuyer education
Virginia Housing's homebuyer course is free, genuinely useful, and required for some of the programs above. The certificate is good for two years — so taking it early costs you nothing and keeps your options open.
Military & veteran programs
If you've served, there are extra options — including accessibility grants for veterans with disabilities and dedicated education — layered on top of the zero-down VA loan.
Loan types that need little — or nothing — down
Assistance programs work best stacked on the right loan. The low-down options most Richmond buyers use:
VA loans — 0% down for eligible service members, veterans, and some surviving spouses.
USDA loans — 0% down in eligible areas (parts of the Richmond metro qualify).
FHA loans — as little as 3.5% down, with flexible credit requirements.
Conventional loans — as low as 3% down for many buyers, especially first-timers.
Stack an assistance grant on top of one of these, and the cash you actually need at the closing table can shrink dramatically.
Don't forget your lender
The state isn't the only source. Many lenders offer their own down-payment and closing-cost grants, and they change often. For example, some national lenders currently offer sizable ones — Wells Fargo's Homebuyer Access® grant puts up to $10,000 toward a down payment, and its Dream. Plan. Home.® credit covers up to $5,000 in closing costs — for buyers within certain income ranges and eligible areas. Whether a specific home and buyer qualify depends on the program's current terms, which is exactly why I keep a short list of trusted preferred lenders: they can check your numbers against every program — state and lender — in one conversation, for free.
So who counts as a “first-time buyer”?
More people than assume they don't. For most of these programs, “first-time” simply means you haven't owned your primary home in the past three years — so past owners who've been renting can often qualify again. And in certain Target Areas, even that requirement can be waived.
Quick answers
How much do I really need?
Often 3–5%, and sometimes $0 with the right loan plus assistance. A lender can give you your real number in a single call.
Do I have to pay the grants back?
The DPA and Closing Cost Assistance grants are true grants — no repayment. The Plus Second Mortgage is a loan (usually deferred until you sell, refinance, or pay off the home).
What's the catch?
Mainly income limits, a credit-score minimum, and a homebuyer class. Nothing exotic — and a good lender walks you through all of it.
Does my credit have to be perfect?
No. Minimums vary by loan (for example, around 620 for many FHA loans), and a lender can tell you exactly where you stand and how to strengthen it.
Where do I start?
Two free steps: take the homebuyer course, and talk to a lender who knows these programs. I'm glad to connect you with mine.
One important note.
Programs, percentages, and income limits change. Everything here is a plain-English overview for 2026 — confirm the current details at VirginiaHousing.com and with a licensed lender before you count on any figure.
When You're Ready to Make Richmond Home
Looking for a Realtor who gets it? Whether you're buying, selling, or moving to Richmond, you deserve someone in your corner who sees you fully and advocates fiercely for you. That's what I do — every client's welcome at my table. Learn more on my LGBTQ+ friendly real estate page.
⌂ Equal Housing Opportunity
Steve Davis · River Fox Realty · Licensed Real Estate Agent in the Commonwealth of Virginia. This article is general information, not lending, legal, or tax advice. Loan and assistance program terms, percentages, and income limits change — confirm current details with a licensed lender and Virginia Housing. All housing services are offered without regard to race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity.
Comments