Virginia Housing offers some of the best down payment assistance programs in the country for first-time home buyers. This 2026 guide covers exactly what's available, how to qualify, and how to combine programs to dramatically reduce your cash to close on a Hampton Roads home.
Key takeaways at a glance
- Virginia Housing DPA Grant — up to 2.5% of purchase price ($8,125 on $325k), doesn't have to be repaid.
- Closing Cost Assistance Grant — up to 2.5% of purchase price for FHA borrowers.
- Plus Second Mortgage — covers down payment and/or closing costs (must be repaid).
- MCC tax credit — federal tax credit equal to 10% of mortgage interest paid, life of loan.
- All programs use a Virginia Housing-approved lender; income limits apply.
| Program | Maximum | Repayment? | Eligibility |
|---|---|---|---|
| DPA Grant | 2.5% of purchase price | None — true grant | Income-qualified FTHB |
| Closing Cost Assistance Grant | 2.5% of purchase price | None — true grant | FHA borrowers, income-qualified |
| Plus Second Mortgage | Covers down payment / closing | Yes — separate loan | Income-qualified FTHB |
| Mortgage Credit Certificate (MCC) | 10% of mortgage interest annually | None — federal tax credit | Income-qualified FTHB |
Use a Virginia Housing-approved lender — not all lenders are approved. Income limits vary by county and household size.
In this guide
Who qualifies
- First-time buyer (definition: hasn't owned a primary residence in past 3 years; some exceptions for veterans, targeted areas)
- Income limits apply (vary by county; typically $110-$150k+ in Hampton Roads)
- Credit score: 620+ typical minimum
- Property must be primary residence
- Loan must go through Virginia Housing-approved lender
DPA Grant — up to 2.5% of purchase price
The DPA Grant is a true grant — it does not have to be repaid. It can be used toward your down payment on FHA, VA, conventional, or USDA loans. On a $325k home, that's up to $8,125 of free money toward closing.
Closing Cost Assistance Grant
For FHA borrowers, an additional grant of up to 2.5% of purchase price toward closing costs. Stacks with DPA Grant — combined potential is 5% of purchase price ($16,250 on $325k).
Plus Second Mortgage
A second-lien loan from Virginia Housing covering down payment and/or closing costs. Must be repaid (typically over 30 years). Lower-rate than market alternatives. Stacks with first mortgage.
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. Substantial savings over 30 years.
How to apply
- Find a Virginia Housing-approved lender (not all lenders are; ask explicitly)
- Complete a Virginia Housing-approved homebuyer education course (often free, online)
- Get pre-approved as you would for any mortgage
- The lender packages the DPA / grant programs into the loan
- Qualify, close, receive grants applied at closing
Frequently Asked Questions
Do Virginia Housing grants have to be repaid?
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.
What income limits apply?
Vary by county and household size. Typically $110-$150k+ for most Hampton Roads jurisdictions. Check Virginia Housing's official income limits chart.
Can I use DPA with a VA loan?
Yes - DPA grants can layer on top of VA, FHA, conventional, and USDA. VA + DPA + seller concessions can produce $0 cash to close.
Do I have to be a first-time buyer?
Mostly yes - defined as not owning a primary residence in past 3 years. Some exceptions for veterans, military spouses, and buyers in targeted areas.
What is the MCC?
Mortgage Credit Certificate - federal tax credit equal to 10% of mortgage interest paid annually, in addition to the standard mortgage interest deduction. For income-qualified first-time buyers.
Can I use DPA with new construction?
Yes - DPA programs apply to both resale and new construction purchases.
How long does Virginia Housing take to approve?
Approval is part of the standard mortgage process. The Virginia Housing-approved lender handles it. No separate application timeline.
Where do I find a Virginia Housing-approved lender?
Search at virginiahousing.com or ask a buyer's agent for recommendations. Many Hampton Roads lenders are approved.
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
- IRS Form 8396 — Mortgage Interest Credit
- 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.