First-time home buyers in Virginia have more program options than most know about. This 2026 guide covers every major federal and state-level program available — and how to combine them to minimize cash to close.
Key takeaways at a glance
- FHA, VA, Conventional 97, USDA — the four main low-down-payment loan programs.
- Virginia Housing DPA Grant — up to 2.5% of purchase price, doesn't have to be repaid.
- Virginia Housing Closing Cost Assistance Grant — up to 2.5% of purchase price for FHA borrowers.
- Mortgage Credit Certificate (MCC) — federal tax credit equal to 10% of mortgage interest paid annually for life of loan.
- Programs can stack — combining VA loan + seller concessions can produce $0 cash to close on a Hampton Roads home.
| Program | Min Down | Min Credit | Mortgage Insurance | Max Seller Concession |
|---|---|---|---|---|
| VA | $0 | 580+ (lender) | None | 100% closing + 4% |
| USDA | $0 | 640+ | Annual fee 0.35% | 6% |
| FHA | 3.5% | 580 (or 500/10%) | UFMIP + lifetime MIP | 6% |
| Conventional 97 | 3% | 620+ | PMI drops at 78% LTV | 3% |
| Virginia Housing | 0–3% | 620+ | Varies by underlying loan | Stacks on top of above |
In this guide
FHA loan
3.5% down with 580+ credit score. Most flexible debt-to-income. Lifetime MIP in most cases. Full FHA guide.
VA loan
$0 down, no monthly mortgage insurance, generous seller concessions. The single best mortgage program for eligible service members and veterans. Full VA guide.
Conventional 97
3% down with 620+ credit score. PMI drops at 78% LTV. Best for buyers with solid credit. Conventional loan guide.
USDA loan
$0 down with no PMI, but property must be in USDA-eligible area. Income limits apply. USDA guide.
Virginia Housing programs
- DPA Grant — up to 2.5% of purchase price
- Closing Cost Assistance Grant — up to 2.5% for FHA borrowers
- Plus Second Mortgage — small second loan covering down payment and/or closing costs
- Mortgage Credit Certificate (MCC) — 10% federal tax credit on mortgage interest, life of loan
Income limits and first-time buyer status (defined loosely) apply. Use a Virginia Housing-approved lender.
How to stack programs
The smart play: combine a low-down-payment loan with seller concessions and Virginia Housing assistance. Example: VA loan + 100% closing costs from seller + 4% concessions can produce $0 cash to close. Or: FHA 3.5% down + Virginia Housing DPA grant + seller concessions can reduce cash to close to under $5k on a $325k home.
Frequently Asked Questions
What is the best loan for a first-time home buyer in Virginia?
VA loan if you're eligible (zero down, no PMI). FHA if you have lower credit or limited savings. Conventional 97 if you have 700+ credit. USDA if buying in eligible rural area. Layer Virginia Housing programs on top.
Do you have to be a first-time buyer to use Virginia Housing programs?
Mostly yes, but the definition is loose: "first-time buyer" means you haven't owned a primary residence in the past 3 years. Income limits also apply.
Can I combine FHA with Virginia Housing DPA?
Yes — Virginia Housing DPA grants can layer on top of FHA, VA, conventional, and USDA loans for income-qualified borrowers.
What income limits apply to Virginia Housing programs?
Vary by household size and county. Typically $130k-$150k+ for most Hampton Roads jurisdictions. Check the Virginia Housing income limits chart for your specific area.
What is the Mortgage Credit Certificate (MCC)?
Federal income tax credit equal to 10% of mortgage interest paid annually, on top of the standard mortgage interest deduction. For income-qualified first-time buyers using a Virginia Housing-approved lender.
Can I use grant money for down payment AND closing costs?
Yes — Virginia Housing offers separate grants for down payment and closing cost assistance, plus the Plus Second Mortgage.
Do I have to repay Virginia Housing DPA grants?
No. The DPA Grant and Closing Cost Assistance Grant are true grants - they don't have to be repaid. The Plus Second Mortgage IS a loan that must be repaid (often at 0-1% interest).
How do I apply for Virginia Housing programs?
Through a Virginia Housing-approved lender. Not all lenders are approved - ask explicitly when you start the loan application process.
Have a question about your home purchase?
Talk to a Hampton Roads buyer's agent or loan officer who can walk through your specific situation - no pressure, no obligation.
Sources & further reading
- Virginia Housing — first-time buyer programs
- VA — Home Loan Programs
- HUD — Buying a home
- CFPB — Mortgage loan options
Information reflects 2025-2026 conditions and rules. Always confirm current details with the relevant agency, lender, or licensed professional before relying on any specific figure or rule.
About the Author
The VaHome Team is dedicated to providing expert real estate insights for Hampton Roads, Virginia. Contact us at (757) 777-7577 or tom@vahomes.com.
About the Hampton Roads Real Estate Market
Hampton Roads is one of the most dynamic real estate markets on the East Coast, anchored by the largest naval complex in the world at Naval Station Norfolk and home to roughly 120,000 active-duty, reserve, and civilian Department of Defense personnel. The region spans seven cities — Virginia Beach, Norfolk, Chesapeake, Suffolk, Portsmouth, Hampton, and Newport News — plus the Peninsula communities of Williamsburg, Yorktown, and Poquoson, with each market carrying its own personality, school district, and price profile.
Buying or selling here means thinking about more than just a house. Tidewater geography means flood zones, hurricane preparation, and waterfront premiums matter. Military presence means BAH affordability, PCS season inventory crunches (May through August), and VA loan eligibility are top of mind for a meaningful share of every neighborhood. School quality varies block by block, especially across the seven independent city school divisions, and is often the deciding factor for relocating families.
Why Buyers and Sellers Choose VaHome
The VaHome Team — Tom and Dariya Milan with LPT Realty — focuses on the Hampton Roads region with deep expertise in military relocation, VA financing, and the trade-offs that local buyers actually face. From listing strategy that gets your home in front of the right relocating buyer to buyer representation that respects your BAH cap and PCS timeline, the team treats every transaction as a long-term relationship. The site is built to make decisions clearer: BAH-aware search, drive-time mapping to every major installation, neighborhood guides written by people who live here, and a calculator that shows real monthly cost — taxes, insurance, HOA, and PMI included — instead of a teaser headline number.
Plan Your Next Move
Whether you are buying your first home with a VA loan, moving up while your kids transition between school districts, or selling a Hampton Roads property to relocate to your next duty station, the resources on this site are organized around the questions you are actually asking. Browse listings filtered by base proximity, paygrade-aware BAH cap, and commute time. Read neighborhood guides for Virginia Beach, Norfolk, Chesapeake, Suffolk, Hampton, Newport News, Williamsburg, and the Peninsula communities. Use the mortgage calculator to compare conventional, FHA, VA, USDA, and jumbo loan scenarios side by side. When you are ready to talk, the contact form goes directly to a specialist who knows the area, the lenders, and the timing.