Virginia First-Time Home Buyer Grants 2026

Virginia Home Buyer Programs Compared (2026)

Virginia Housing offers 3 kinds of purchase help, and only 1 can be used per loan: the DPA Grant, the CCA Grant or the Plus Second Mortgage. Here's the full lineup as of November 3, 2026.

Sources: Virginia Housing homebuyer pages, DPA Grant, Plus Second Mortgage, SPARC and FirstHome Dream guidelines and lender FAQ (all revised August 2026); City of Alexandria; Fairfax County. Checked November 3, 2026.

The honest headline: for an income-eligible first-time buyer using a bond loan, Virginia's grant is genuinely free money, with no lien and no note. The trade-off is that it's small. At 2.5%, it covers most of an FHA down payment, but none of your closing costs.

Virginia Housing Income and Sales Price Limits (August 1, 2026)

Virginia Housing sets limits for 6 areas of the state, not by county, and the grant limits are lower than its loan limits. According to Virginia Housing's income and sales price limits page, these took effect August 1, 2026, and the grant and standard limits count the income of everyone in the household.

Source: Virginia Housing, Income and Sales Price / Loan Limits (opens in a new tab), effective August 1, 2026. Virginia Housing's expanded and non-bond loans, open to repeat buyers, use a qualifying income limit of $245,000 in the Washington-Arlington-Alexandria area and $175,000 elsewhere, with no sales price limit beyond conforming loan rules. Higher limits apply in Areas of Economic Opportunity.

A detail that trips people up: the grant limit is the one that matters most. A family of three in Richmond earning $115,000 qualifies for a standard Virginia Housing bond loan ($138,000 limit) but is over the $110,000 grant limit. Virginia Housing points those buyers to the Plus Second Mortgage instead.

How Far the Virginia Housing Grant Goes by County

Virginia's median owner-occupied home is worth $383,700, according to the Census Bureau QuickFacts data for 2020-2024. Grantsights analysis of Virginia Housing's grant terms against that figure puts the 2.5% FHA Bond grant at $9,592 on the state median, which leaves the buyer about $3,837 (1%) to cover to reach FHA's 3.5% minimum down payment, plus all closing costs.

Calculation: 2.5% and 3.5% of each locality's median value; FHA minimum from HUD's loans page (opens in a new tab); price limits from Virginia Housing (August 1, 2026). ACS medians trail 2026 prices, and FHA loan limits may cap the loan in the highest-cost counties.

Because the grant is a percentage, a Fairfax or Loudoun buyer at the median would get about $18,000 to $19,000, double what a Hampton Roads buyer gets. But in Arlington, the median home is above Virginia Housing's $800,000 limit, so the typical Arlington house is out of reach for these programs entirely.

Local Help in Northern Virginia, Richmond and Hampton Roads

Local programs in Virginia's 2 biggest jurisdictions that Grantsights could verify, Alexandria and Fairfax County, work differently from most states: they're tied to specific price-restricted homes rather than any house on the market.

Alexandria: up to $50,000, mostly for city-marketed homes

The City of Alexandria's Flexible Homeownership Assistance Program (FHAP) puts a 0% second trust of up to $50,000 on the home, repaid on resale or after 99 years, with an anti-speculation surcharge if you sell within 5 years (25% in year 1, falling 5% a year). According to the city's 2026 income guidelines, the amount depends on your tier: up to $50,000 at or under HUD's 80% limit ($85,450 for 2 people), $40,000 in the next tier, and $30,000 or $20,000 for moderate incomes up to 100% of median ($132,900 for 2). You must have lived or worked in Alexandria for 6 months and own no real estate. The catch is in the flyer: since July 2009, FHAP assistance is "usually limited" to units marketed by the city's Office of Housing, so it isn't a general down payment program.

Fairfax County: below-market homes, not cash

Fairfax County's Homebuyer Programs page (opens in a new tab) runs a First-Time Homebuyer Program for households earning up to 70% of area median income (minimum $25,000), with homes "priced from the low $100,000s to $300,000," and a Workforce Dwelling Unit program for 70% to 120% of median, with homes starting at $250,000. These are affordable dwelling units built into new communities, so you buy a specific listed unit at a below-market price. You can still pair the purchase with a Virginia Housing loan and grant if you qualify for both.

Arlington, Loudoun, Prince William, Richmond and Hampton Roads

Grantsights couldn't open a current homebuyer assistance page on the official sites of Arlington, Loudoun or Prince William counties, or the cities of Richmond, Virginia Beach and Norfolk, on November 3, 2026; their old program URLs returned "not found" pages. That doesn't mean nothing exists, so call each locality's housing office. In the meantime, Virginia Housing's SPARC and FirstHome Dream rate cuts run through local sponsors, including local governments, which is often where a city's real help shows up.

Buyers weighing a move across the Potomac can compare our Maryland first-time home buyer guide and the District's up-to-$202,000 HPAP loan in our DC first-time home buyer guide.

FHA, VA and USDA Loans With Virginia Housing

Virginia Housing makes 4 loan types, and each one pairs with a different grant. According to Virginia Housing's home loans page, FHA, VA and USDA loans allow scores "as low as 620," and its conventional loans need 640.

• FHA: HUD lists a 3.5% minimum on its loans page (opens in a new tab). With Virginia Housing's FHA Bond loan, the 2.5% DPA Grant can cut what you bring to 1%, or the Plus Second Mortgage can bring it to 0%.
• VA: no down payment for eligible veterans, per the VA purchase loan page (opens in a new tab). Virginia Housing's VA Bond loan qualifies for the 2% Closing Cost Assistance Grant, which can also pay the VA funding fee.
• USDA guaranteed loans: 100% financing in eligible rural areas, with income up to 115% of median, per USDA Rural Development (opens in a new tab). The USDA bond loan also pairs with the 2% CCA Grant.

For USDA's direct loans and repair grants, see our USDA housing grants guide.

What Virginia Housing Doesn't Tell You on Its Grant Pages

Grantsights compared Virginia Housing's consumer pages with its August 2026 program guidelines and lender FAQ and found 5 things the grant pages leave out.

1. The grant amount isn't on the grant page. The DPA Grant page explains eligibility but not the dollar figure. You have to dig into the program guidelines to find 2% (Conventional Bond) or 2.5% (FHA Bond), based on the lower of price or appraised value.
2. It can only pay the down payment. Per the DPA Grant guidelines, the money "must be used towards down payment (not closing costs)," and you can't get cash back beyond your earnest money and fees paid outside closing. Budget separately for closing costs.
3. The grant requires a bond loan, and bond loans can carry recapture tax. Virginia Housing's lender FAQ says loans "may be subject to recapture" when the first mortgage is a bond program. IRS Form 8828 instructions explain that recapture may apply on a sale within 9 years, depending on your gain and your income in the year you sell, so ask your lender for the recapture disclosure before you lock.
4. The grant expires with your rate lock. The guidelines say the DPA Grant is reserved only after the loan is locked and "expires on the same day as the first mortgage loan lock expiration." A delayed closing can cost you the grant if the lock lapses.
5. The MCC is gone, even if a county page says otherwise. Fairfax County's homebuyer page still says some Virginia Housing loans "offer an MCC," but Virginia Housing's August 2026 FAQ says the MCC program is suspended.

Common Mistakes and Red Flags for Virginia Buyers

The 3 most expensive mistakes in Virginia involve picking the wrong Virginia Housing product, not missing a program.

• Taking the Plus Second when you qualify for the grant. A common mistake is choosing the bigger 5% Plus Second because it covers closing costs. It's a 30-year loan at the first mortgage's rate, with a 0.25% (FHA) or 0.125% (conventional) rate add-on on the first mortgage. The 2.5% grant is never repaid, which makes it the better deal than the Plus Second for most buyers who qualify.
• Using a non-bond loan by accident. The grant only works with Virginia Housing's bond loans. If your lender locks a non-bond loan, the grant isn't available.
• Letting the lock expire. Because the grant expires with the lock, closing delays can cost you thousands. Build slack into your contract dates.
• Assuming a big Arlington budget fits. Arlington's $895,000 median value is above Virginia Housing's $800,000 limit, so many listings there won't qualify.
• Paying for grant help. According to the FTC's government grant scams page (opens in a new tab), a fee to receive government grant money is a red flag. Virginia Housing's grants are reserved by your lender in its loan system; there's no separate application to buy.

If you'll need repairs soon after closing, our guide to home repair grants for low-income homeowners covers federal and local options.

How to Apply for Virginia Housing Grants, Step by Step

The process has 6 steps, and the free class comes first because Virginia Housing requires it for many of its loans.

1. Check your area's grant limit. Use the table above. If you're over, look at the standard bond limit and the Plus Second Mortgage.
2. Take Virginia Housing's free homebuyer class. Its home loans page says many of its loans require completing a free homebuying course; keep the certificate.
3. Find a Virginia Housing-approved lender. Ask specifically for an FHA Bond or Conventional Bond loan with the DPA Grant, and have them price the Plus Second side by side.
4. Ask about SPARC or FirstHome Dream. If a local sponsor has an allocation, you could cut your rate by 1% (SPARC) or 2% (FirstHome Dream, for first-generation buyers), and both can be used with the grant.
5. Lock, then reserve the grant. Your lender must lock the first mortgage before reserving the grant, and the grant's clock runs with the lock.
6. Close. The grant is listed on your loan application and award letter; there's no note or lien for it.

For example, a couple in Henrico County earning $90,000 buying a $350,000 home with a Virginia Housing FHA Bond loan would be under the Richmond-area grant limit of $96,000 for 2 people and the $550,000 price limit. The DPA Grant would be $8,750 (2.5%), specifically covering most of the $12,250 FHA down payment. They'd bring the remaining $3,500 (1%) from savings or a gift, plus closing costs, which the grant can't pay. If they sell in 6 years, they owe nothing back on the grant itself.

Northern Virginia's limits run much higher. A Fairfax family of four earning $160,000 is still under the $174,000 grant limit for 3 or more people, so on a $600,000 townhouse with an FHA Bond loan, the grant would be $15,000.

What to Do If You're Over Income or Denied

Virginia Housing has 3 fallbacks built in for buyers who miss the grant, and none of them requires a new program application.

• If you're over the grant limit: the Plus Second Mortgage uses higher standard limits and is open to repeat buyers. Virginia Housing's expanded non-bond loans go up to $245,000 in Northern Virginia.
• If your credit is under 640: FHA, VA and USDA loans through Virginia Housing can go as low as 620. A HUD-approved counselor can help with a plan; our guide on how to apply for grants as an individual explains how to sort real help from scams.
• If you're a repeat buyer: check Virginia Housing's Areas of Economic Opportunity map, where it waives the first-time buyer rule and raises limits.
• If you need to rent a while longer: our rental assistance programs guide and HUD income limits guide explain what's available and how area median income is set.

Local programs like Alexandria's FHAP often draw on federal HOME funds; our HUD HOME program guide explains how that money is used.

If you'd like a quick way to see which official programs match your situation, the free eligibility checker points you to the right official routes. It doesn't hand out grants or apply for you.

Sources

• Virginia Housing, Down Payment Assistance Grant (opens in a new tab), Closing Cost Assistance Grant (opens in a new tab), Plus Second Mortgage (opens in a new tab) and Home Loans (opens in a new tab) (checked November 3, 2026)
• Virginia Housing, Income and Sales Price / Loan Limits (opens in a new tab) (effective August 1, 2026) and Areas of Economic Opportunity (opens in a new tab)
• Virginia Housing, Loan Guidelines (opens in a new tab), including the DPA Grant, Plus Second Mortgage, SPARC and FirstHome Dream program guidelines and the Homeownership Loan Programs FAQs (all last revised August 2026)
• Virginia Housing, Home Loan Options booklet (opens in a new tab)
• City of Alexandria, Homebuyer Resources (opens in a new tab), Flexible Homeownership Assistance Program flyer (opens in a new tab) and 2026 HUD Income Guidelines, COA Homeownership (opens in a new tab)
• Fairfax County, Homebuyer Programs (opens in a new tab) (checked November 3, 2026)
• IRS, Instructions for Form 8828 (opens in a new tab)
• HUD, Loans (FHA) (opens in a new tab)
• VA, VA purchase loan (opens in a new tab)
• USDA Rural Development guaranteed loan rules (opens in a new tab), as they apply to buyers in Virginia
• U.S. Census Bureau, QuickFacts: Virginia, Fairfax, Prince William, Loudoun, Virginia Beach and Chesterfield (opens in a new tab) and Henrico, Arlington, Richmond, Norfolk, Chesapeake and Alexandria (opens in a new tab) (median value of owner-occupied homes, 2020-2024)
• FTC, Government Grant Scams (opens in a new tab)