Down Payment Assistance Programs in Virginia (2026)
Last updated 05/19/2026 by
Ante Mazalin
Edited by
Andrew Latham
Summary:
Down payment assistance in Virginia is money from state agencies and local governments that helps eligible homebuyers cover down payment and closing costs when purchasing a home.
Virginia’s programs range from a statewide grant of 2-2.5% of the purchase price through Virginia Housing to DHCD’s deferred loans of up to $50,000 for the lowest-income buyers.
- Virginia Housing DPA Grant: 2% of the purchase price (conventional) or 2.5% (FHA) as a true grant that never has to be repaid, paired with a Virginia Housing first mortgage. Available statewide.
- DHCD HOMEownership DPA: Up to 10–15% of the sales price plus up to $2,500 in closing cost assistance (maximum $40,000) as a deferred loan for buyers at or below 80% AMI, administered through local providers.
- DHCD Virginia Pilot DPA: Up to $50,000 (minimum $20,000) as a forgivable second mortgage for first-time buyers at or below 60% AMI, administered through local pilot agencies. Forgiven 1/15 per year over a 15-year period.
- Arlington MIPAP: Up to 25% of the purchase price or $112,500 (whichever is lesser) as a no-interest deferred loan with shared appreciation for moderate-income buyers purchasing in Arlington County.
Virginia’s homeownership programs are administered through two separate tracks: Virginia Housing handles the grant-based programs that pair with its first mortgage products, while the Department of Housing and Community Development (DHCD) runs deeper deferred-loan programs for buyers with lower incomes.
Understanding which track you fall into before talking to a lender saves significant time.
The programs below cover statewide options first, then Northern Virginia locality programs, where amounts can be substantially larger for buyers in high-cost markets like Arlington and Fairfax County.
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Statewide Virginia Down Payment Assistance Programs
Virginia Housing (formerly VHDA) and the Virginia Department of Housing and Community Development (DHCD) administer the state’s primary DPA programs. They serve different income tiers and use different structures. Visit virginiahousing.com or dhcd.virginia.gov to find a participating lender or local provider in your area.
| Program | Max Assistance | Who Qualifies | Repayment |
|---|---|---|---|
| Virginia Housing DPA Grant | 2% (conventional) or 2.5% (FHA) of purchase price | First-time buyers (or repeat buyers in targeted areas); must pair with Virginia Housing Bond first mortgage; income within DPA Grant lower limits | True grant; never repaid |
| Virginia Housing Plus Second Mortgage | Up to 5% of purchase price (or up to 1.5% over purchase price) | First-time or repeat buyers; income within Virginia Housing limits; cannot combine with DPA Grant | 30-year fixed-rate loan; closing costs coverable with 680+ credit score |
| DHCD HOMEownership DPA | Up to 10–15% of sales price + $2,500 closing costs; max $40,000 | First-time buyers at or below 80% AMI; accessed through local DPA providers | Deferred loan; no payments or interest during primary residency |
| DHCD Virginia Pilot DPA | Up to $50,000 | First-time buyers at or below 60% AMI; accessed through local pilot agencies | Forgivable second mortgage; no payments or interest; forgiven 1/15 per year over a 15-year affordability period — fully forgiven after 15 years of primary occupancy |
Virginia Housing Down Payment Assistance Grant
Virginia Housing’s DPA Grant is a true gift: it is not a loan, there is no repayment, and there is no lien placed on your property for the grant amount. The grant equals 2% of the purchase price when paired with a Virginia Housing Conventional Bond first mortgage, or 2.5% when paired with a Virginia Housing FHA Bond first mortgage.
To qualify, you must be a first-time homebuyer (no ownership in the past three years), have a household income within Virginia Housing’s DPA Grant lower income limits, and bring at least 1% of the purchase price to closing from your own funds or an eligible gift.
The grant covers the remaining down payment requirement. It cannot be combined with Virginia Housing’s Plus Second Mortgage or Closing Cost Assistance Grant.
Virginia Housing works with a network of participating lenders statewide. Call Virginia Housing at 877-843-2123 or visit virginiahousing.com to find a participating lender in your area.
Virginia Housing Plus Second Mortgage
The Plus Second Mortgage is the alternative for buyers who don’t qualify for the DPA Grant or whose income falls outside the DPA Grant’s lower income limits. It pairs a Virginia Housing first mortgage with a 30-year fixed-rate second mortgage that covers the down payment.
The maximum second mortgage is 5% of the purchase price, or you can borrow up to 1.5% more than the purchase price to cover some closing costs as well. Buyers with a credit score of 680 or higher can use the loan to cover all or a portion of closing costs. The Plus Second Mortgage is available to both first-time and repeat buyers and carries Virginia Housing’s standard income and sales price limits, which are higher than those for the DPA Grant.
The DPA Grant and the Plus Second Mortgage cannot be used together. Your participating lender can model both options to show which produces a lower total payment for your income and credit profile.
DHCD HOMEownership Down Payment Assistance
The Virginia Department of Housing and Community Development runs a separate track of DPA programs that go deeper than Virginia Housing’s grant, but are restricted to lower-income buyers. The HOMEownership DPA provides a deferred loan equal to up to 10% of the sales price, with some buyers in DHCD-approved areas eligible for up to 15%. Closing cost assistance of up to $2,500 is layered on top. The maximum combined award is $40,000.
To qualify, your household income must be at or below 80% of the area median income. The loan accrues no interest and requires no monthly payments as long as you maintain the home as your primary residence. The balance is due when you sell or no longer occupy the home.
DHCD does not originate this program directly: assistance is distributed through local DPA providers on a regional basis. Visit dhcd.virginia.gov/dpa or contact Cheri Miles at Cheri.Miles@dhcd.virginia.gov for a list of providers in your region.
DHCD Virginia Pilot Down Payment Assistance
Virginia’s Pilot DPA program offers the largest dollar amounts of any statewide Virginia program: a forgivable second mortgage of up to $50,000, with a minimum of $20,000. Forgiveness is not immediate; the loan is forgiven at a rate of one-fifteenth of the original balance each year over a 15-year affordability period. Stay in the home as your primary residence for the full 15 years, and you owe nothing when you sell.
To qualify, your household income must be at or below 60% of the area median income. The loan accrues no interest and requires no monthly payments during primary occupancy. It is administered through a separate set of local pilot agencies rather than the standard DPA provider network. Visit dhcd.virginia.gov/dpa for the current list of Virginia Pilot DPA administrators and their regional coverage areas.
Down Payment Assistance in Northern Virginia
Northern Virginia localities with high home prices have developed their own DPA programs that can significantly exceed what statewide programs offer. Arlington County and Fairfax County each run separate programs with their own income limits, loan terms, and application processes.
Arlington County MIPAP
Arlington County’s Moderate-Income Purchase Assistance Program (MIPAP) is one of the most generous locality DPA programs in Virginia. It provides a 30-year, no-interest, deferred-payment loan of up to 25% of the home purchase price, capped at $112,500. The loan can be applied to both the down payment and all closing costs.
MIPAP uses a shared appreciation structure. You make no monthly payments and pay no interest during your ownership period. When you sell or refinance, if the property has appreciated, you repay the original loan amount plus a proportionate share of the net appreciation, up to a maximum of 25% of the gain.
To qualify, you must be a first-time buyer (no ownership in the past three years), purchase within Arlington County, and have a minimum credit score of 660. The maximum purchase price is $500,000, and you must contribute at least 1% of the purchase price from your own funds. Household income limits are $91,840 for a single-person household, $104,960 for two people, $118,080 for three, and $131,120 for four.
The first mortgage must be a conventional loan from a Virginia Housing (formerly VHDA) participating lender. Complete a Virginia Housing Homebuyer Class before applying. Application review takes up to 60 days. Contact the Arlington County Housing Division at 703-527-3854 or visit arlingtonva.us/MIPAP.
Pro Tip: Virginia has two distinct DPA systems: Virginia Housing for the statewide grant (never repaid), and DHCD for deeper deferred loans aimed at lower-income buyers. If your income is above 80% AMI, Virginia Housing’s DPA Grant or Plus Second Mortgage is likely your primary statewide path. If you’re below 80% AMI, check both Virginia Housing and your local DHCD provider to see which offers more assistance. DHCD’s deferred loan can reach $40,000, far exceeding Virginia Housing’s 2-2.5% grant on a typical purchase.
Fairfax County Down Payment Loan
Fairfax County’s Housing and Community Development department offers a down payment loan for first-time homebuyers (no ownership in the previous three years) at or below 80% of the area median income. A Virginia Housing first mortgage through a pre-qualified participating lender is required. You cannot be under contract to purchase a home when you apply.
Like Arlington’s MIPAP, this loan uses a shared equity structure: when you sell or refinance, you repay the original loan principal plus a proportionate share of net appreciation equal to the loan’s percentage of the original purchase price.
Assistance amounts depend on current funding availability. Contact Fairfax County Housing at 703-246-5000 or email FCDPL@fairfaxcounty.gov to confirm current loan amounts and the application process before starting your search.
How to Apply for Virginia Down Payment Assistance
Virginia’s DPA programs run through two separate tracks. Use this path to navigate both.
- Complete a Virginia Housing homebuyer education class. Required by virtually all Virginia programs. Virginia Housing offers free homebuyer education classes online and in person statewide.
- Find a Virginia Housing participating lender. Virginia Housing’s DPA Grant and Plus Second Mortgage both require a Virginia Housing-approved lender. Use the lender locator at virginiahousing.com to find one in your area. Ask the lender to run a comparison between the DPA Grant and the Plus Second Mortgage based on your credit and income profile.
- Check DHCD provider availability if you’re at or below 80% AMI. If your household income falls below 80% AMI, contact a local DHCD DPA provider for your region. DHCD’s deferred loans can reach $40,000, which may exceed the Virginia Housing grant. Visit dhcd.virginia.gov/dpa for the DPA Local Provider Contact List.
- Apply for MIPAP early if buying in Arlington. MIPAP’s pre-approval process takes up to 60 days. Start before going under contract, not after. Obtain your 1st mortgage pre-approval first, then submit the MIPAP pre-approval application to the Arlington County Housing Division through their secure portal.
- Confirm Fairfax County funding before applying. The Fairfax County Down Payment Loan depends on current funding availability. Call 703-246-5000 or email FCDPL@fairfaxcounty.gov to verify current availability before your lender submits a loan file.
- Coordinate all closings through your lender. DPA loans close simultaneously with your first mortgage. Your Virginia Housing-approved lender manages this coordination. You do not submit a separate closing package for each program.
Other Ways to Lower Your Down Payment in Virginia
If your income exceeds the program limits or funding is not currently available in your area, a few other paths are worth knowing about.
FHA loans require just 3.5% down for buyers with a credit score of at least 580, though most Virginia lenders apply a 620 minimum in practice. Conventional loans through Fannie Mae HomeReady and Freddie Mac Home Possible allow 3% down for buyers at or below 80% AMI and can be stacked with some DPA sources.
VA loans for eligible veterans and active-duty service members require no down payment, and Virginia’s veteran-specific DPA options can add further assistance on top.
Virginia Housing also offers a Mortgage Credit Certificate (MCC), which converts a portion of your annual mortgage interest into a dollar-for-dollar federal tax credit of up to $2,000 per year. The MCC does not reduce your down payment requirement but lowers your effective monthly cost, which can help with long-term affordability. Ask your Virginia Housing lender whether you qualify.
For a broader look at how Virginia’s programs compare nationally, see the full state-by-state DPA comparison.
Jubilee
Jubilee is a leasehold homeownership company that separates the cost of the land from the cost of the home. You buy the dwelling and lease the land beneath it, reducing the purchase price and the down payment you need to bring to closing.
Key facts:
- The purchase price is lower than a comparable fee-simple property because you are not buying the land outright, which reduces your mortgage size and upfront costs.
- Monthly costs include a land lease fee in addition to your mortgage payment. Factor both into your affordability calculation before committing.
- You build equity in the structure as it appreciates, but resale terms are governed by the leasehold agreement.
- In high-cost Northern Virginia markets where land values drive a significant share of the purchase price, the price reduction from a leasehold structure can exceed what a grant program provides.
Read the full trade-offs of leasehold homeownership before committing. The model works well for the right buyer but is not a fit for everyone.
Key takeaways
- Virginia Housing’s DPA Grant provides 2% of the purchase price (conventional) or 2.5% (FHA) as a true grant that never requires repayment. It must pair with a Virginia Housing Bond first mortgage and cannot be combined with the Plus Second Mortgage.
- The Virginia Housing Plus Second Mortgage covers up to 5% of the purchase price as a 30-year fixed-rate loan, available to first-time and repeat buyers. Buyers with a 680+ credit score can use it to cover closing costs as well.
- DHCD’s HOMEownership DPA reaches up to $40,000 (10-15% of the sales price plus $2,500 in closing costs) as a deferred no-interest loan for buyers at or below 80% AMI. Assistance is distributed through local providers, not directly from DHCD.
- DHCD’s Virginia Pilot DPA provides up to $50,000 (minimum $20,000) for first-time buyers at or below 60% AMI as a forgivable second mortgage, forgiven 1/15 per year over 15 years. After 15 years of primary occupancy, no balance is owed.
- Arlington County’s MIPAP provides up to 25% of the purchase price or $112,500 (whichever is lesser) as a no-interest deferred loan with shared appreciation, for first-time buyers purchasing in Arlington with a maximum purchase price of $500,000.
- All Virginia DPA programs require completion of a Virginia Housing-approved homebuyer education class before closing.
Frequently Asked Questions
Does the Virginia Housing DPA Grant have to be repaid?
No. The Virginia Housing DPA Grant is a true gift, not a loan. There is no repayment requirement, no lien for the grant amount, and no Note or Deed of Trust associated with the grant funds. As long as your transaction meets Virginia Housing’s program requirements, the grant is yours to keep regardless of how long you stay in the home.
What is the income limit for Virginia Housing down payment assistance?
Virginia Housing uses a separate set of income limits for the DPA Grant called the “DPA Grant Lower Income Limits,” which are lower than its standard or bond program limits. Income limits vary by locality and household size. Contact a Virginia Housing participating lender at 877-843-2123 or visit virginiahousing.com/homebuyers/find-lender for the current limits applicable to your county.
Can I combine the Virginia Housing DPA Grant with DHCD assistance?
The Virginia Housing DPA Grant may be used with other non-Virginia Housing down payment assistance in accordance with first mortgage requirements. This means a DHCD local provider grant could potentially be stacked with the Virginia Housing DPA Grant, provided the first mortgage requirements allow it.
Ask your participating lender to confirm compatibility before assuming both sources can apply to the same transaction.
How does Arlington’s MIPAP shared appreciation work?
MIPAP charges no interest and requires no monthly payments. When you sell or refinance, Arlington County receives the original loan amount back. If the home has appreciated in value, the county also receives a proportionate share of the net appreciation equal to the same percentage as the original loan represented of the purchase price, up to a maximum of 25% of the appreciation. If the home has not appreciated, you only repay the original principal.
What is the difference between the Virginia Housing DPA Grant and the Plus Second Mortgage?
The DPA Grant is a gift (2% or 2.5% of the purchase price) that never has to be repaid. It is available only to first-time buyers within the DPA Grant lower income limits and must pair with a Virginia Housing Bond first mortgage.
The Plus Second Mortgage is a 30-year loan of up to 5% of the purchase price, available to both first-time and repeat buyers at higher income levels. The two cannot be used together. The right choice depends on your income, credit score, and how much you need at closing.
Are Virginia DPA programs available to veterans?
Yes. Virginia Housing offers a Closing Cost Assistance Grant specifically for buyers using VA or USDA loans, covering up to 2% of the purchase price. VA loans require no down payment, so this grant covers VA funding fees and other closing costs. Eligible veterans and service members should ask their Virginia Housing lender about the CCA Grant. Additional veteran-specific DPA options may also be available through local providers.
Ready to find the right mortgage to pair with your Virginia down payment assistance? Compare mortgage lenders on SuperMoney to see current rates from multiple lenders side by side.
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