First-time home buyers in Virginia have access to multiple federal, state, and military programs that can dramatically reduce cash to close. This 2026 guide walks through what's available and how to qualify.
Key takeaways at a glance
- Virginia Housing offers DPA Grant, Closing Cost Assistance Grant, Plus Second Mortgage, and MCC.
- Federal programs: FHA, VA, Conventional 97, USDA — all enable low-down-payment financing.
- Military programs: VA loan with $0 down and capped closing costs.
- Local Hampton Roads programs: occasional city-level assistance varies year-to-year.
- Programs can stack — combining VA loan + DPA grant + seller concessions can produce $0 cash to close.
| Program | Type | Maximum |
|---|---|---|
| FHA / VA / Conv 97 / USDA | Federal loan | 3.5% / $0 / 3% / $0 down |
| Virginia Housing DPA Grant | State grant | 2.5% of purchase price |
| Closing Cost Assistance Grant | State grant (FHA only) | 2.5% of purchase price |
| Plus Second Mortgage | State loan | Down payment + closing |
| Mortgage Credit Certificate | Federal tax credit | 10% of mortgage interest annually |
| Seller concessions | Negotiated | 3-6% of purchase price |
| Local employer programs | Hospital / school employer benefits | Varies |
In this guide
Virginia Housing programs
The most-used assistance for Virginia first-time buyers:
- DPA Grant — up to 2.5% of purchase price (no repayment)
- Closing Cost Assistance Grant — up to 2.5% (FHA borrowers)
- Plus Second Mortgage — covers down payment / closing
- MCC — federal tax credit equal to 10% of mortgage interest, life of loan
Federal loan programs
- FHA — 3.5% down, 580+ credit, lifetime MIP
- VA — $0 down, no PMI, generous concessions
- Conventional 97 — 3% down, 620+ credit, PMI drops at 78% LTV
- USDA — $0 down in eligible rural areas
Military-specific programs
For active-duty, veterans, and surviving spouses:
- VA loan — $0 down, no PMI, 100% closing costs + 4% concessions allowed
- VA disability funding fee waiver
- Servicemembers Civil Relief Act (SCRA) — caps interest at 6% on pre-service debts
- Military Housing Privatization Initiative — base housing options
Local Hampton Roads programs
Local assistance varies year to year. Check with city housing offices in Virginia Beach, Norfolk, Chesapeake, Hampton, Newport News, Suffolk, and Portsmouth for current programs. Some employer-based programs (hospital systems, school districts) also offer down payment assistance.
How to apply
Most assistance programs flow through a Virginia Housing-approved lender or an FHA/VA-approved lender. Ask explicitly which programs they offer when you start the loan application. Complete a Virginia Housing-approved homebuyer education course (online, free) early.
Frequently Asked Questions
What are the best first-time home buyer programs in Virginia?
Virginia Housing DPA Grant + matching loan program (FHA/VA/conventional/USDA) + seller concessions is the best combination for most first-time buyers.
Do Virginia Housing programs require homebuyer education?
Yes - most Virginia Housing programs require completion of an approved homebuyer education course (online, free).
Can I combine DPA with VA loan?
Yes - Virginia Housing DPA grants can layer on top of VA loans. VA + DPA + seller concessions can produce $0 cash to close.
What is the income limit for Virginia Housing?
Varies by household size and county. Typically $110-$150k+ for most Hampton Roads jurisdictions.
Do I have to be a first-time buyer for these programs?
Mostly yes - defined as not owning a primary residence in past 3 years. Some exceptions for veterans and buyers in targeted areas.
Are there grants that don't have to be repaid?
Yes - Virginia Housing's DPA Grant and Closing Cost Assistance Grant are true grants. The Plus Second Mortgage IS a loan that must be repaid.
How do I find a Virginia Housing-approved lender?
Search at virginiahousing.com or ask a buyer's agent for recommendations.
Can I use these programs with new construction?
Yes - Virginia Housing programs apply to both resale and new construction.
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
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.