First-Time Buyer Programs in Virginia
Virginia runs real, state-level help for first-time buyers — loans, a down payment grant, and a second-mortgage option through Virginia Housing. Here is what each program is, who they tend to fit, and how to actually use one.
Start with Virginia Housing
Virginia Housing — the state’s housing finance authority, formerly known as VHDA — is where most first-time buyer help in Virginia actually lives. It doesn’t lend to you directly: its programs run through participating lenders, which is why the single most useful question you can ask any lender is "do you work with Virginia Housing programs, and which ones would I fit?" Not every lender participates, and a lender who doesn’t may simply never mention that these programs exist. The authoritative, current source for every program is virginiahousing.com — treat this guide as the map and that site as the territory.
Who counts as a "first-time" buyer
Usually more people than you’d think. For most programs of this kind, "first-time" typically means you haven’t owned a home within the last few years — not never in your life — and some programs waive the requirement entirely in certain areas or for certain buyers, such as qualifying veterans. Each program also carries income limits and home price limits that vary by where in Virginia you’re buying. Don’t rule yourself out from the couch: the eligibility rules are specific enough that a participating lender or virginiahousing.com should be the one to tell you no.
Virginia Housing loans
The foundation is a Virginia Housing first mortgage — a standard 30-year loan (offered in conventional and government-backed flavors like FHA) originated by a participating lender under Virginia Housing’s guidelines. On its own it’s a normal mortgage; its real value is that it’s the key that unlocks the rest of the toolbox, because the grant and second-mortgage help below generally must be paired with one. Qualification, current terms, and whether it beats the lender’s ordinary products for your situation are the lender’s call — ask them to run it both ways.
The Down Payment Assistance grant
Virginia Housing’s Down Payment Assistance grant is exactly what the name says: money toward your down payment that, because it is a grant, does not get repaid. It’s aimed at eligible first-time buyers within the program’s income limits and is layered on top of a qualifying Virginia Housing first mortgage. Grant funding and rules change over time — how much is available, who qualifies, and which loans it pairs with are all things to verify with a participating lender or virginiahousing.com at the time you apply, not from any article, including this one.
The Plus Second Mortgage
The Plus Second Mortgage is Virginia Housing’s other down-payment tool: a second loan, alongside your Virginia Housing first mortgage, that covers most or all of the down payment — which can get an eligible buyer into a home with very little cash up front. The key difference from the grant: a second mortgage is borrowed money with its own payment, so it raises your total monthly cost. Whether that trade — keeping your savings in the bank versus a slightly higher payment — makes sense for you is a real decision, and a good lender will show you the math side by side.
The Mortgage Credit Certificate (MCC) concept
An MCC is a federal tax tool sometimes offered through state housing agencies: it converts a portion of the mortgage interest you pay each year into a dollar-for-dollar federal income tax credit — not a deduction — for as long as you live in the home and keep the loan. It attaches when you buy; you can’t add one later. Availability has come and gone over the years, so ask your lender and check virginiahousing.com for whether an MCC is currently offered in Virginia, and talk to a tax professional about what one would actually be worth in your return.
How to actually use this
Three steps. First, before you get attached to any lender, ask directly: "Are you a Virginia Housing participating lender? Which of their programs — the loans, the DPA grant, the Plus Second Mortgage — could I be eligible for?" Second, verify what they tell you against virginiahousing.com, which lists current programs and participating lenders. Third, ask about local help too — some Virginia counties and cities run their own down-payment or closing-cost programs on top of the state’s, and lenders active in that area will know them. None of this is a rate quote or a promise of eligibility — programs, limits, and funding change, and only a lender and Virginia Housing can tell you what you qualify for today. But these programs are real, they exist for exactly the buyer who thinks they can’t afford to start, and asking about them costs nothing.
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Educational information only — not legal, tax, or lending advice. Figures are typical ranges, not quotes or approvals. Confirm specifics with a licensed lender or attorney.